Quebec and Canada don't do enough to Encourage Entrepreneurs: Part Deux

Philosophically, we don't handle the special mind of an entrepreneur all that well in this country.

Just by casual observation one can easily detect that our society does not value entrepreneurs as much as it should. How could it with its entire economic construct stagnantly dependent on public sector workers and unionized labour?

The lifeline of a successful, innovative and healthy economy is one where entrepreneurs thrive. In order for this to happen, people need to have access to capital to usher in their ideas.

In our current environment, the institutions and organizations that hold the purse strings – notably banks and the government – do not go far enough in helping to foster a dynamic entrepreneurial class. They bog us down with endless red tape demanding we meet all sorts of counter-productive conditions that often make little sense - especially considering the paltry amounts that are offered.

The system is set up best for those who need the capital the least. The prospect of an enterprising individual receiving any form of lending (loan or grant) for an idea is remote – if not impossible.

As mentioned, the conditions hurled at a budding entrepreneur make little sense. For example, organizations will ask for a business plan with financial figures. If the company is still in its infant stages, how can it have reliable financial numbers?

When we asked about this when we put our business model together we were told to estimate. However, how we estimated those figures had to be proven. Get it? Neither do we.

Another odd practice is the notion that for every dollar given, the person receiving the money must match it. In other words, an entrepreneur has to come up with collateral - depending on the organization - equivalent to the dollar amount. So, why do I need the money exactly?

At the end of the day, money is available to businesses that are already operating. Funds are essentially used for expansion or other purposes. No money is available for an idea that should be launched.

So where does this leave the lemonade stand pioneers? It leaves them knocking up for cash from family members and anyone else willing to listen, that’s where. Or, to follow a more old fashioned way, save your money.

Another obstacle is the widening generational gap between those who hold the funds and those who seek it. The baby boomers have total control over the destiny of younger generations and this makes us feel antsy.

We recently witnessed this generational business gulf when we tried to receive a grant for an Internet business through a governmental agency.

When all was said and done, we weighed our options (risk versus reward, so to speak) and felt they were asking far too much for too little money - in our case, $9 400. As business people who have a company already in operation we had little time or patience to waste wallowing in governmental red tape.

Governments can wait to disperse funds, while start up companies trying to survive don’t have luxury of time. Needless to say, these experiences only serve to discourage. It may even foster us against them mentality. It is unfortunate because it doesn’t have to be this way.

Ultimately, our decision was to try and survive on our own until a more reasonable opportunity came along. It’s not what we wanted but what other choices did we have?

In my opinion, Quebec is an individualist society that is naturally positioned to create and enhance a vibrant entrepreneurial class. We need to bring it forward and nurture it. We’ve conditioned people to become too dependent on the government and the public sector to solve all our problems as well as drive our economy.

Time to shift part of the responsibility onto the shoulders of the private sector.

When people ask me the difference between the United States and Canada I tend to answer, “In America they try to solve a problem by saying ‘I, should.’ In Canada, the response usually leans towards, ‘The government should.’”

This is a sure one-way ticket to mediocrity. Why not take a chance on entrepreneurs and give the lemonade stand a break.

It’ll be refreshing.