“A city like Barrie lives on the growth of small business; most people in the city work in businesses of 20 and fewer employees. These are jobs that won’t leave town, as many of the services provided are connected to place. The more these businesses grow, the more local jobs available.”
Devine musing … by John Devine
There’s a lot of official chatter about supporting small business, the economic backbone of a community like Barrie. But when push comes to shove you have to wonder how much of that chatter really matters in the growth of enterprise and innovation.
Forgive me if I’m wrong, but the ‘official’ employment strategy of governments at all levels seems to be one of chasing jobs every other jurisdiction is after, and ones that may only be around until the government subsidies run out or the plant in some ‘free’ zone, is built.
Rod Jackson, Barrie’s MPP, hosted a useful seminar at The Creative Space recently, highlighting the various government programs and networks established to support the growth of small businesses. And there are many useful avenues available.
But he also told a story of an American company that made popsicle sticks, with the aid of $7 million of public money over seven years, only to go bankrupt at the end of the day. And where did the wood for the sticks come from? Not from resource-rich Canada. In this case, we had Ontario taxpayers paying an American company to make popsicle sticks from wood imported from south of the border.
The same direction can be seen in numerous communities as governments bend over backwards to entice companies to either stay or relocate. Where’s the innovation and entrepreneur-developing strategy in this approach? The object of all this official desire may hang around, but if they can make a product in a corner of the world where people work for a dollar a day, and environmental and labour laws are lax or non-existent, what can our governments, as well as labour groups, do to convince them to do business here?
We could participate in a race to the bottom and agree to chip away at wage and benefits, as is already happening, but then if everyone is working for next to nothing, who’d be able to afford all those fine products these companies make? Or, we could enact ‘made in Canada’ rules and take our chances at the World Trade Organization. Don’t bet on that happening anytime soon.
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