| Original language | English |
|---|---|
| Article number | 50 |
| Journal | Administrative Sciences |
| Volume | 10 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published (VoR) - Sept 2020 |
Keywords
- Capital structure
- Crowdfunding
- Entrepreneurial finance in Canada
- Small business financing
Access to Document
Other files and links
Cite this
- APA
- Author
- BIBTEX
- Harvard
- Standard
- RIS
- Vancouver
}
In: Administrative Sciences, Vol. 10, No. 3, 50, 09.2020.
Research output: Contribution to journal › Article › peer-review
TY - JOUR
T1 - Financing of entrepreneurial firms in canada
T2 - Some patterns
AU - Miglo, Anton
N1 - Funding Information: The CSBF Program aims to increase the availability of financing for the establishment, expansion, modernization and improvement of small businesses. It insures a portion of loans made to qualifying small businesses by the private sector. It supports some 10,000 financings valued at around CAD1 billion each year. Under the CSBF Program, Industry Canada and commercial lenders share the risk of providing small businesses with term loans of up to CAD500,000 for acquiring real property and equipment and making leasehold improvements. The government is liable to pay 85% of eligible losses on defaulted loans registered under the program, which allows private-sector lenders to comfortably increase the amount of financing extended to small businesses. The program is supported by charging 3% above prime and a 2% registration fee paid by the borrowers. A lot of research has been done to evaluate the efficiency of different programs, including CSBF. Much of it shows the significant economic impact of these programs.19 Funding Information: Other notable programs include the Futurpreneur Canada (former Canada Youth Business Foundation—a charitable organization heavily supported by the government), Export Development Corporation (EDC), Aboriginal Business Canada and Indian and Northern Affairs Canada. Futurpreneur Canada helps young entrepreneurs by providing mentorship, learning resources and start-up financing when commercial lending is unavailable. It offers several different financing programs to support entrepreneurs aged 18 to 34, including one that provides start-up small business loans of up to CAD15,000. Founded in 1996, this program has invested in more than 3300 young people, whose businesses have generated more than 16,600 new Canadian jobs, CAD93 million in tax revenue and hundreds of millions of dollars in sales and export revenue. Export Development Corporation (EDC) supports large and small businesses with critical export financing; of its 8300 clients, about 80% are SMEs. Although EDC does not offer any grants, they do offer loan guarantees for companies exporting their products. If a company expects to export products and wants to minimize its risk, EDC is a great resource. Aboriginal Business Canada offers grants of up to CAD99,999 for eligible individual Aboriginal entrepreneurs. Indian and Northern Affairs Canada has made progress in increasing the participation of Aboriginal entrepreneurs in the Canadian economy through the Aboriginal Business Development Fund21. Publisher Copyright: © 2020 by the author. Licensee MDPI, Basel, Switzerland.
PY - 2020/9
Y1 - 2020/9
KW - Capital structure
KW - Crowdfunding
KW - Entrepreneurial finance in Canada
KW - Small business financing
UR - http://www.scopus.com/inward/record.url?scp=85115659097&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85115659097&partnerID=8YFLogxK
U2 - 10.3390/admsci10030050
DO - 10.3390/admsci10030050
M3 - Article
AN - SCOPUS:85115659097
SN - 2076-3387
VL - 10
JO - Administrative Sciences
JF - Administrative Sciences
IS - 3
M1 - 50
ER -