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What We Heard at The State of Small Businesses in Canada Virtual Event

What We Heard at The State of Small Businesses in Canada Virtual Event

On January 29, attendees from across Canada joined us for a very special virtual event.

On January 29, attendees from across Canada joined us for a very special virtual event, The State of Small Businesses in Canada: Navigating Click-and-Mortar Opportunities. Hosted in partnership with Amazon Canada, the event corresponded with the launch of the new report from the Business Data Lab, A Portrait of Small Business in Canada: Adaption, Agility, All at Once.

We were honoured to have Minister of Small Business Rechie Valdez join us to discuss the importance of timely data for small business owners and the federal programs available to help small businesses succeed. Following Minister Valdez’s address, Marwa Abdou, report author and Senior Research Director, Business Data Lab, broke down the report’s key findings, after which attendees heard from a panel of small business owners about their experiences navigating the complex economic and digital landscape.

Panellists:

Top L to R: Panellist Sean Alexander, report author and moderator Marwa Abdou, and panellist Erin Bury. Bottom L to R: Panellists Abby Malchow, Jenn Harper and Rebecca Robins.

The Tools Are Out There

Small businesses don’t have to tackle today’s challenges on their own. Whether looking for information, financing or mentorship, Minister Valdez provided many examples of available tools designed to help entrepreneurs reach their goals and transition to a “click-and-mortar” reality.

Opportunity Amidst Uncertainty

With 98% of all businesses in Canada falling under the small business category and 57% of those under the micro business (1-4 employees) category, unpacking the realities of small business is vital for greater understanding and evidence-driven policy updates.

Five key highlights from the report:

  • Small business is big business in Canada.
  • Canadian businesses are smaller, more diverse and more resilient than we thought.
  • Having an omnichannel presence is no longer a luxury but a necessity.
  • While there are several bright spots in the data, more work is needed to help small businesses.
  • Targeted policy should be data-driven and underpinned by diversity, equity and inclusion.

For a full breakdown of the report’s highlights, read our summary blog.

The Power of Data

The importance of timely, relevant and regional data for small businesses cannot be understated. Up-to-date insights gives Canadian small businesses the information they need to make informed decisions and improve their performance. However, it can take some work to get good at understanding data or to recruit the people who can.

Omnichannel Presence is Essential

With consumer shopping habits changing — 83% of retail shoppers conduct online research before they visit a store, and 8% shop online from a retailer with a physical location nearby — small businesses need to have omnichannel presence and an online payment solution. Our panellists’ advice to attendees is to start with a high-quality website and to research the best tools and channels for getting in front of the desired audience, whether that’s social media, Amazon or physical retailers. Small businesses looking to expand should consider increasing their capacity through cloud technology, like Amazon Web Services.

Value-Based Shopping

Value-based shopping is becoming more and more pervasive, especially among Gen Z, and that includes shopping from small businesses. According to Abby Malchow, 60% of Amazon sales are from independent sellers that are small- and medium-sized enterprises. To help users find small businesses, Amazon provides a small business search filter and badge.

Go Where Your Customers Are

Advertising has changed but some things remain the same — and that’s going where your customers are. Do some research into the available channels, traditional or digital, to figure out where you want your product to go and where your customers are. Not everyone uses the same social media platforms, and TV ads, shopping channels and traditional partnerships with relevant stakeholders can all be beneficial strategies.

Interested in attending an event like this one? Check out all upcoming hybrid, virtual or in-person events on our website.

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A Better Life for All: Read the 2023 Annual Report

A Better Life for All: Read the 2023 Annual Report

For the last three years, the Chamber 2025 Strategic Plan has guided the biggest transformation in our organization’s history — and these early months and years are only the beginning.

For the last three years, the Chamber 2025 Strategic Plan has guided the biggest transformation in our organization’s history — and these early months and years are only the beginning.

In 2023, we focused on delivering more of the high-quality advocacy we are known for while also launching new offerings to help Canadian businesses gain more of what they need to succeed:


Insight into markets, competitors and trends.


Influence over the decisions and policies that drive business success.


Impact on business and economic performance.

Considering the economic challenges and opportunities Canadian businesses faced last year and will face again this year, our work remains as critical as ever. We are committed in our mission to drive change, partner broadly and be the undisputed champion and catalyst for the future of business success.

Thank you for joining us on this transformative journey.

Celebrating the 2023 Wins of Canadian Business and the Canadian Chamber Network

In 2022, we launched our bold new identity and began a transformative journey to become not just the voice of Canadian business, but also the undisputed champion and catalyst for the future of business success.

That journey has continued in 2023, and our progress towards the objectives set out in our Chamber 2025 Strategic Plan has been remarkable.

Watch the video for a glimpse of where this transformative journey took us last year.

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Unveiling the Portrait of Small Businesses in Canada: Insights and Challenges

Unveiling the Portrait of Small Businesses in Canada: Insights and Challenges

The report provides a detailed look at several business ownership categories, as well as dissecting some of the challenges small businesses are facing.

While the importance of small businesses to Canada’s economy is undeniable — there are 1.3 million of them employing over 11 million people — there is still a lot that remains unknown about them. A Portrait of Small Business in Canada: Adaption, Agility, All at Once provides a unique picture of Canadian small business — one that breaks down who owns these businesses, their age, geography, and industry as well as dissecting some of the challenges small businesses are facing as they look to grow in a complex economy.

Using novel data and research, including custom tabulations from Statistics Canada, Environics Analytics and public sources, the report explores three questions:

  • What is the current state of small business in Canada?
  • How is the small business context evolving?
  • How can small businesses be better positioned to thrive in this rapidly changing environment?

The Current State of Small Business in Canada

Despite representing 98% of Canadian businesses and employing two-thirds of the Canadian economy, the portrait of small business remains largely murky. In this report, BDL created three more detailed subcategories of small businesses (micro, scale and mature), revealing that the experiences of small businesses vary significantly.

  • Micro: businesses with 1-4 employees. The most common type of firm, representing 57% of businesses in Canada.
  • Scale: businesses with 5-19 employees and representing 30% of Canadian business.
  • Mature: businesses with 20-99 employees and representing 11% of Canadian business.

If all businesses in Canada were sorted by employment size, the median firm would have fewer than five employees, underscoring the importance of improving our understanding of the business realities of all small firms, but especially micro.


Geography

The bulk of small businesses are in the four most populous provinces — Ontario, Quebec, British Columbia and Alberta — however, adjusting for vast population differences, there are proportionately more businesses located in Yukon, Prince Edward Island and Western Canada.


Sector

Nearly half of all small business are in the following four industries: professional, scientific, and technical services; construction; retail trade; and health care and social assistance.


Ownership

Among the traditionally underrepresented groups, women have the largest gap in business ownership relative to their population share. There are also significant ownership gaps for persons with disabilities, visible minorities and Indigenous persons. Immigrants to Canada are the only equity-seeking group with a more-than-proportional representation of business owners.

Examining trends in ownership allows us to better formulate a picture of how much work is needed to develop a truly inclusive and representative landscape of small businesses in Canada.

The Smaller the Business, the Bigger the Problems

During the pandemic, small businesses had slower business and employment growth, were more likely to face significant revenue declines and debt constraints, as well as difficulties adopting new technologies. These challenges not only continue to haunt small businesses, but further hamper their ability to cope with tumultuous economic conditions.

Slower Business Growth

Compared with pre-pandemic conditions in December 2019, the number of small businesses in Canada increased by only 2.9% while the number of large firms increased by 7.3% and medium firms increased by 5%.  

Weaker Employment

Small businesses were hit hardest by unemployment and were the slowest to recover, though compared to pre-pandemic conditions, the percentage change in employment has essentially remained the same.

Decreased Revenue, Increased Business Debt

Small businesses were almost twice as likely to have experienced a drop in revenue in 2020 compared with medium and large firms and pandemic debt increases were more common for small businesses and those owned by underrepresented groups. These same groups were also more likely to report that their business could not take on additional debt. Debt constraints have consistently been a bigger concern for micro and scale businesses.

Going Digital

New technologies and the widespread use of social media are altering how businesses connect with consumers. The report emphasizes the challenge businesses face today as they are expected to meet consumers’ desire for personalized online interactions, while, in many cases, maintaining physical store locations. 

Further driving home the importance of having an enticing online commercial presence, 83% of Canadian retail shoppers reported they conduct online research before they visit a store, and 8% shopped online from a retailer with a physical location nearby. By investing in their online presence and visibility, maintaining accurate and engaging digital information, and actively managing and growing their online reputations doing so, small retail businesses could effectively capture the attention of potential customers during the research phase of purchasing, and ultimately drive more foot traffic to their stores and boost sales in both digital and physical domains.

Future of Small Business in Canada

Small businesses are a major contributor to Canada’s economy, but they are also often more vulnerable to economic downturns and technological shocks — both of which are a constant in our world. Amidst this reality, demands on small businesses to adapt and innovate alongside Canada’s wider green and digital transitions will only intensify. Ensuring that adequate financial, operational and regulatory support measures boost the resilience of small businesses — especially micro and scale — is critical.

The lessons learned from analyzing the data in this report reiterate how government support is fundamental to the survival of small business and to ensuring their inclusive recovery and growth.

For more insights on the state of small business in Canada, read the full report.

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Policy Matters: Canada’s Productivity Problem

Policy Matters: Canada’s Productivity Problem

Productivity is an essential component of economic prosperity and linked to our standard of living.

Alongside inflation and interest rates, you probably noticed a lot of political conversations and media attention around Canada’s productivity in 2023. It’s an important topic because productivity is an essential component of economic prosperity and linked to our standard of living. Unfortunately, Canada’s productivity has decreased for 11 out of the past 12 quarters.

What is Productivity?

Productivity is measured by gross domestic product (GDP) created per hour worked. The more GDP created per hour, the higher the country’s productivity. According to OECD data for 2022, we produce $1.13 USD in GDP every minute. Compared to some of our fellow G7 nations, like France ($1.39), Germany ($1.45) and the United States ($1.50), or even the G7 average of $1.31, we certainly have room to improve.

Another way of looking at productivity is by inputs and outputs. Inputs are everything that a business needs to complete a task or create a product, and includes labour, equipment and supplies. An output is the result of the inputs, whether that’s a car, a software update or a kilogram of beef. A business’s productivity increases when it produces more or higher-value outputs with the same amount of inputs.  

The adoption of remote work and the amazing potential of artificial intelligence were supposed to unlock a productivity boom, but the hype has yet to show up in the statistics. While Canada did experience a spike in productivity in the summer of 2020, we have since returned to 2016 levels.

Considering that we work more hours than in many other advanced economies, rank top in the G7 for people with college or university credentials, and lead in artificial intelligence innovation, our productivity should not be stagnant. So, what’s going on?

Barriers to Productivity

There are several factors that influence our poor productivity performance:

Skilled Labour Shortages

Shortages of qualified personnel can hinder productivity and right now Canada’s facing a growing demand for skilled workers across industries. This need is particular prevalent in fields requiring specialized skills, such as advanced manufacturing technologies, mining and agriculture.

Transportation of Goods

Canada is a large country and getting goods to and across provinces isn’t always easy for a couple of reasons: red tape that makes interprovincial trade difficult and frequent breakdowns in trade and transportation infrastructure because of extreme weather like floods, fires and snow, or weeks-long strikes. Such disruptions — preventable or not — interrupt the supply chain and increase the costs of goods.

Lack of Competition

Canada’s barriers to foreign competition are among the highest in comparison to other economically advanced countries. But without sufficient competition, companies with poor productivity are allowed to fill the market. In Canada, 5-7% of businesses qualify as zombie firms — businesses older than 10 years that would be insolvent if not for a constant infusion of new capital, often from the government. This business climate does not push our entrepreneurs to excel or our businesses to innovate.

High Proportion of Small Businesses

Canadian small and medium-sized enterprises (SMEs) are an integral part of our economy, accounting for 98% of all businesses. However, they are less productive than their counterparts in other countries and Canada’s larger companies. Why? Two significant reasons are a) a reliance on ineffective methods; and b) the slow adoption of technology and AI.

Ineffective Methods
Most SMEs continue to rely on less effective methods for improving productivity. A 2023 economic study by Desjardins found that commonly used tactics like increasing wages (82% use rate) and allowing greater flexibility with work hours (70% use rate) only have a success rate of 31% and 38% respectively. On the other hand, investing in automation has an 81% success rate but only a 33% use rate.

Slow Adoption of Technology
The same Desjardins study found that digitally mature SMEs grow faster and are more resilient. Yet, only 6% of Canadian businesses across industries plan to adopt AI in the next 12 months, according to the Business Data Lab’s 2023 Q1 Canadian Survey on Business Conditions Report.

While there are many organizations across industries making great strides in technology adoption, in general, sectors with a large share of SMEs, like agriculture and forestry, construction, and real estate, are among the least likely to adopt new technology.

  • Only 3% of agriculture and forestry and construction businesses and 6% of real estate businesses plan to adopt AI.
  • Only 3% of agriculture and forestry and real estate and 4% of construction businesses plan to move operations online.
  • Only 3% of construction businesses and 4% of real estate businesses plan to automate tasks.

However, we can’t talk about SMEs without recognizing the productivity barriers they face too.

Regulatory Complexity
SMEs often face a complex regulatory environment that involves complying with federal, provincial, and municipal regulations. Navigating these regulations can be time-consuming and resource-intensive, leading to delays and increased costs.

Lack of Access to Capital
Access to affordable capital is essential for SMEs looking to invest in technology, research and development, and expansion. Challenges in securing funding can limit a company’s ability to innovate, which is related to productivity (we’ll talk about that more in How to Increase Canada’s Productivity).

The Relationship between Inflation and Productivity

Inflation (another hot topic in 2023 and of great concern to businesses and consumers alike) happens when:

  • Demand for goods and services is greater than the supply.
  • When the production or input costs increase but outputs do not.

In either scenario, the prices for goods and services increase for the consumer, causing them to experience a “loss of purchasing power”. When income doesn’t rise with the increase in costs, their standard of living suffers.

In Canada, wages have gone up substantially, but there hasn’t been a complementary boost in productivity. This forces businesses to either lay off staff or increase the cost of outputs, feeding into the cycle of inflation.

How to Increase Canada’s Productivity

Productivity is essential to our long-term standards of living, so it’s critical that we turn things around quickly. Enabling an innovative economy is one of the best ways we can improve Canada’s productivity. Here’s what that would involve:

Strengthening Investment in Agriculture

Agriculture is one of Canada’s most economically critical sectors. Government could help improve the sector’s productivity through innovation by partnering with businesses on research, product development and the commercialization of the agri-food sector, and developing policy supports to incentivize private sector research and development investment.

Increasing Digital, Technology and AI Adoption in Canadian Businesses

Most uses of AI in business won’t be mind-blowing — but they will improve efficiency by automating certain tasks and relieving some of the administrative duties from employees. In their Toronto Star op-ed, Catherine Fortin LeFaivre, Vice President, Strategic Policy & Global Partnerships, and Ulrike Bahr-Gedalia Senior Director, Digital Economy, Technology & Innovation at the Canadian Chamber of Commerce, wrote: “Imagine a residential construction company that uses AI to streamline hundreds of invoices from its trades and suppliers, giving employees more time to build homes while shedding administrative duties; or a business that uses AI for predictive maintenance of its vehicle fleet, ensuring a part is replaced before it leads to unplanned downtime and service delays.”

Invest in a Skilled Workforce
Part of increasing digital adoption is ensuring that Canada has a skilled and adaptable labour force capable of implementing and managing this new technology. Collaboration between the private sector and educational institutions and government to develop programs that train, upskill and reskill individuals will help address gaps in the workforce as will strategic, skills-based immigration programs aligned with regional labour needs and accelerating the process of recognizing foreign qualifications.

Supporting the Digital Transformation of SMEs

SMEs are often hesitant to invest in new technology due to a lack of technical skills and knowledge, challenges in hiring the skilled workers who could use this tech advantageously and difficulty getting financial support that would allow them to invest in innovation. 

Government policy and supports for SMEs like the Canadian Digital Adoption Program’s Boost Your Business Technology grant are an integral part in helping SMEs overcome the barriers to adopting new technology and innovating their processes.

Streamlining the regulatory processes can help reduce the burden on SMEs, while clear and efficient regulatory frameworks can minimize compliance costs and administrative hurdles.

Ensuring Intellectual Property Protection

Intellectual property (IP) rights are a measure of innovation, which is linked to productivity since innovation is the significant improvement of a product, system, or process. And as mentioned before, improving productivity includes producing better, higher-quality outputs, not just more.

Yet, Canadian companies frequently transfer the patents for their inventions to foreign companies. As Daniel Schwanen, Vice President of Research at the C.D. Howe Institute, wrote in a 2021 letter to Ontario ministers, “…Canada is a research- and ideas-producing economy, that sees relatively few of the ideas generated here (or poaching those generated elsewhere) commercialized by Canadian firms.” As a result, the inventors don’t get the profits from their inventions.

Ensuring robust, reasonable, and reliable intellectual property protection for innovative products will give innovators the confidence to invest significant resources into R&D over many years, eventually paying into our productivity levels.

Increasing R&D Investment

Out of the G7 countries, Canada is second to last in terms of percentage of GDP spent on research and development. As written in a previous Policy Matters, investing in R&D is integral to equipping, attracting and retaining talent, and driving the innovation that allows Canada to stay competitive in a global market. Without sufficient investment in research and development, companies and countries face economic decline. Canada needs a research and development ecosystem that supports the talent and technology that can respond to urgent and emerging issues and areas of opportunity for economic growth.

We can’t change our productivity levels overnight, but it’s too important a factor in standard of living and our collective ability to pay for the things we want, including public services, to not prioritize.

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What We Heard: “Economic Reconciliation and Indigenous Entrepreneurship” Inclusive Growth Dialogue

What We Heard: “Economic Reconciliation and Indigenous Entrepreneurship” Inclusive Growth Dialogue

In May 2023, we hosted an Inclusive Growth Dialogue on the topic of “economic reconciliation and Indigenous entrepreneurship.”

In May 2023, in partnership with the Leduc, Nisku and Wetaskiwin Regional Chamber of Commerce, we hosted an Inclusive Growth Dialogue on the topic of “economic reconciliation and Indigenous entrepreneurship” in Nisku, Alberta. The Inclusive Growth Dialogue opened with a lively panel discussion, featuring:

After the panel, attendees heard from keynote speaker, Derek M. Bruno, Founder, SevGen Consulting, before breaking intro roundtable discussion groups to further explore what they had heard.


Here are some of the highlights from this important dialogue:

Economic Reconciliation

In the process of economic reconciliation, it is important to recognize the long-term effects of intergenerational trauma (such as the trauma endured in residential schools) on Indigenous communities and acknowledge its significance.

Economic reconciliation requires:

  • Acknowledging existing challenges faced by Indigenous communities.
  • Including Indigenous communities in economic activities.
  • Recognizing treaty and aboriginal rights.
  • Reframing economic systems to align with Indigenous cultural frameworks.
  • Building partnerships between organizations and Indigenous communities for long-term benefits.
  • Supporting Indigenous communities in terms of training and employment opportunities.
  • Educating the public about Indigenous cultures, histories, and issues.
  • Developing the northern regions of Canada.
  • Investing in teachers, elder care programs, critical infrastructure, and community development.

Barriers Experienced by Indigenous Individuals and Entrepreneurs

Current laws, programs and policies fail to adequately address the specific barriers faced by Indigenous populations and even create additional obstacles that impede the building of sustainable economies and the accumulation of wealth.

A significant barrier faced by Indigenous people is the racism and discrimination that hinders their access to opportunities for advancement in various aspects of life, including education, employment, mentorship and financial services.

  • Indigenous individuals often find themselves confined to minimum wage jobs, with limited chance of advancement or recognition of their potential.
  • Indigenous entrepreneurs struggle to access capital as well as find mentors, quality education and training opportunities.
  • Indigenous businesses regularly encounter difficulties in securing loans or financial assistance from banks and other institutions.

Employer Responsibility in Promoting Reconciliation

Employers can promote reconciliation by establishing culturally safe workplaces that recognize and accommodate the diverse and unique needs and backgrounds of Indigenous employees from various nations, reserves and communities. A culturally safe workplace must include employers actively addressing and eliminating abusive, discriminatory, and stereotyping behaviours. Employers can also help Indigenous employees get recognition, training and professional growth by creating opportunities for mentorship, modifying training programs to facilitate the hiring and inclusion of Indigenous individuals, and encouraging the development of ideas and initiatives that promote workplace collaboration.

The Role of Chambers of Commerce in Economic Reconciliation

There are many positive actions chambers of commerce can take in forwarding economic reconciliation and fostering long-term relationships with Indigenous businesses and communities, including:

  • Participating in community events and promoting Indigenous-based events that reverse stereotypes.
  • Hosting training, education and coaching opportunities and workshops.
  • Highlighting the success stories of Indigenous communities’ leaders and sharing.
  • Advocating for reducing barriers in accessing grants and funding for Indigenous entrepreneurs and businesses.
  • Establishing partnerships with Friendship Centres and collaborating with Indigenous communities to create mastermind groups, share information, and build bridges of support.

It is critical that chambers adopt the reconciliation practices they promote by hiring Indigenous employees, increasing the representation of Indigenous groups on boards of directors and providing training and coaching for and about Indigenous communities and representation.

The Canadian Chamber of Commerce’s Commitment to Reconciliation

In the spirit of reconciliation, the Canadian Chamber of Commerce is committed to building respectful relationships that support Indigenous rights and improve business opportunities for Indigenous peoples. For a number of years, we have had the Canadian Chamber’s Indigenous Affairs Policy Committee, mandated to examine practices that reinforce relationships between Indigenous and non-Indigenous businesses and communities. The Committee advocates for legislation, regulation, and policy which support opportunities that grow Canada’s economy, respect the rights of Indigenous people, advance economic reconciliation and align with the United Nations Declaration on the Rights of Indigenous People.

About the Inclusive Growth Dialogues

In collaboration with the Canadian Chamber Network, we co-hosted five Inclusive Growth Dialogues in 2023. These dialogues provide an opportunity to identify challenges and opportunities relating to the role chambers can play in advancing economic reconciliation and fostering a more inclusive business community.

The What We Heard blogs for Halifax’s Inclusive Growth Dialogue on celebrating Nova Scotia’s Black economy, and Guelph and Coquitlam’s Inclusive Growth Dialogues on employment inclusion of people with visible and invisible disabilities are ready to read!

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Driving Net-Zero Success: Highlights from the Ready to Compete Report

Driving Net-Zero Success: Highlights from the Ready to Compete Report

Canada’s ability to compete in the net-zero economy requires significant investment and commitment from Canadian businesses — but they cannot adapt alone.

The decisions made today, across all levels of government, will influence Canada’s future success in a net-zero world.

Canada’s ability to compete in the net-zero economy requires significant investment and commitment from Canadian businesses — but they cannot adapt alone. The federal government must facilitate the net-zero transition to ensure Canada’s pathway is competitive, enhances investment, creates jobs for Canadians and promotes innovation.

The Canadian Chamber of Commerce’s Net-Zero Council (NZC), in partnership with the University of Waterloo Terrametrics Research Lab, conducted research to identify investment, policy and regulatory priorities for four Canadian regions: Atlantic Canada, Ontario, Prairies and British Columbia.

The analysis focused on six key sectors: agriculture, electricity, transportation, buildings, natural resources and heavy industry. Based on the analysis, the study identified seven priorities that resonate across regions and sectors, and are critical to address if Canada is to prosper in a net-zero world:

  • The need to act quickly.
  • The need to increase public investment and support.
  • The need to remove barriers for business.
  • The need to mobilize and de-risk private investment.
  • The need to prepare a net-zero workforce.
  • The need to focus on Indigenous partnerships and reconciliation.
  • The need to plan for regional differences and varying capacities.

Here are some of the key considerations from each of the four regional analyses.

Atlantic Canada

Renewable electricity generation is one of Atlantic Canada’s most significant challenges in its transition to net-zero. The region’s reliance on oil and natural gas as primary energy sources – and Novia Scotia and New Brunswick’s predominant use of coal for their electricity – are due in part to the rural nature of the provinces and the prevalence of offshore oil and gas drilling in Newfoundland.

Additionally, the four provinces have the highest rates of energy poverty in Canada, and costs are only expected to rise as the region begins to decarbonize their electricity grid in-line with federal net-zero targets. While affordable electricity is critical to ensure business competitiveness and increase investment in the region, there is also growing demand for renewable and net-zero electricity.

Despite a heavy reliance on fossil fuels for electricity, transportation, and other industries, Atlantic Canada is poised to develop and grow their competitive advantage in renewable energy. The region is well positioned to respond to predicted trends in slowing demand for fossil fuels by developing its capacity for on and offshore wind energy, small modular reactor (SMR) nuclear technology, green hydrogen, and hydroelectricity.

Ontario

In 2021, Ontario had the largest provincial share of farms and farm operators in the country, and many were small- to medium-sized enterprises (SMEs) whose growth, competitiveness and ability to adapt to a net-zero economy directly impacts the livelihood and wellbeing of Canadians.

Ontario farm operators have already shown leadership and willingness to implement sustainable practices made possible by sectoral innovation, federal funding and provincial regulatory changes. This demonstrated interest aligns with growing national and global demand for sustainable agri-food products throughout the supply chain. To achieve net-zero emissions and protect Ontario agricultural exports, there must be increased development and implementation of technologies that reduce the footprint of vehicles and equipment through fuel switching, increase methane capture from livestock, and use agricultural soil as a carbon capture, use, and storage (CCUS) mechanism, among others.

Significant efforts must also be directed towards protecting Ontario farmland from development, which will secure the longevity of agricultural SMEs and protect Ontario’s agri-food supply chain.

Prairies

Regulatory uncertainty and regulatory burden are limiting private sector and global investment, especially regarding oil and gas, power infrastructure, and pipelines. Regulations are being implemented without coordination and consideration of cumulative impacts on regions, sectors and industry. Investors want regulatory certainty and clear policy directives. Regulations cannot compromise global competitiveness, especially for trade sensitive industries.

Building the necessary infrastructure needed to meet net-zero targets requires changes to speed up regulatory processes. Fast tracking permitting, reducing regulatory hurdles, and streamlining provincial and federal environmental assessment processes will encourage global investments and advance major infrastructure projects more quickly. Existing regulatory processes are too cumbersome and lengthy.

Development of new natural resource-based projects must include Indigenous partnerships or be Indigenous-led. A collaborative, Indigenous-focused approach to resource development and renewable energy generation provides for own-source revenue generation opportunities for First Nation communities and businesses. The development of an energy transition workforce strategy can help ensure a skilled workforce is ready. Priority should be directed to help retrain workers in declining industries.

British Columbia

British Columbia is a well-recognized leader in establishing bold regulations for the production and sale of zero-emission vehicles (ZEVs) for passenger, medium and heavy-duty vehicles, and associated infrastructural developments. Additionally, its abundant supply of hydroelectricity provides a near-net-zero energy source.

However, investment in ZEV infrastructure varies greatly across geographies and access to ZEVs remains prohibitively expensive for a large portion of the province. If British Columbia is to fully transition from fossil fuel-reliant private vehicles to ZEVs, targeted public subsidies and private investment de-risking initiatives must be implemented to ensure equitable access to ZEV technology.

Similarly, while accelerating the adoption of ZEVs for personal and freight use will lower emissions and help British Columbia achieve its emissions reduction targets, more economic and political emphasis must be directed towards shifting consumer behaviour from private vehicles to public transportation, especially in urban areas where these systems and supporting infrastructure are already established. Doing so will relieve pressure on ZEV suppliers and infrastructure, provide more affordable and accessible options for transportation, and support a long-term shift in how individuals, businesses, and industries conceptualize transportation.

Overall, the report found that the capacity to decarbonize is not equal across the country and that the federal government must provide flexible solutions to support regional approaches, as opposed to a one-size-fits-all. For the full, in-depth analysis:

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Policy Matters: Investing in the Next Generation of Skills and Technology for the Future of Mining

Policy Matters: Investing in the Next Generation of Skills and Technology for the Future of Mining

Now is the time to invest in Canada’s research ecosystem to support the talent and technology needs of all Canada’s emerging sectors, especially critical minerals.

Critical minerals are a group of 31 minerals identified by the government of Canada as playing an essential role in priority supply chains and essential economic green growth. These critical minerals represent significant economic potential in the billions of dollars, greater energy independence for Canada, and opportunities for reconciliation with Indigenous communities upon whose land many of these projects will take place.

But if Canada is to realize its vast potential and become a global leader in critical minerals, we have to start investing in our future now. While the Government of Canada has outlined an ambitious Critical Minerals Strategy, they have not laid out a focused plan to develop the top tier research talent we need to be successful. Now is the time to invest in Canada’s research ecosystem to support the talent and technology needs of all Canada’s emerging sectors, especially critical minerals.


Why Research and Development Matters

Investing in research and development is integral to equipping, attracting, and retaining talent and driving the innovation that allows Canada to stay competitive in a global market. Without sufficient investment in research and development, companies and countries face economic decline.

Unfortunately, this is what’s happening in Canada. In Q3 of 2023, GDP fell by 1.1% annualized. Instead of the expected post-pandemic productivity increase, our productivity has dropped to 2016 levels. And out of our fellow G7 countries — five of which outrank us in productivity — we are last in terms of percentage of GDP spent on research and development.

If Canada is to remain economically prosperous — and there’s no reason we shouldn’t given our natural wealth that extends beyond critical minerals — we need a research and development ecosystem that supports the talent and technology that can respond to urgent and emerging issues and areas of opportunity for economic growth.



The Feedback Loop Between Talent and Technology

As Canada is experiencing a labour shortage across all sectors, the competition for highly skilled talent is fierce.

In the mining industry, Canada’s leading companies are trying — and struggling — to recruit for jobs that require advanced skillsets (like chemists, engineers, and geologists) at the same time as industries like aerospace and automotive. This makes the need for sustained research investment even more essential as there is no surplus of highly qualified talent sitting around waiting.

But if we want Canadians to fill these critical roles, we need to build our domestic research capacity by recruiting the top faculty from around the world to train the next generation in our universities — which is exactly what our competitors are doing.

Canada’s wellbeing, prosperity, and global competitiveness will hinge ever more on how well we can nurture and empower our talented minds.

Report of the Advisory Panel on the Federal Research Support System

To prevent falling any further behind, Canada needs to fund robust opportunities for graduate and post-doctoral researchers through scientific grants and scholarships. Even if future industry professionals only have an undergraduate degree, it is still attained by training with faculty whose research is funded by grants.

By increasing support for research talent through grants and scholarships, the government can make it a more attractive proposition to get a master’s degree or doctorate in an area that will ultimately support the mining sector. Additionally, government should provide investment for graduate students to connect and network within the mining industry to better plan their studies around their workforce goals.


University-Led Innovation

Canada is a leader in mining technology, but to maintain that lead, we need university-driven innovation — like what’s happening at McMaster University.

McMaster is pioneering research that has the potential to make mining more sustainable and productive while also providing benefit to local communities. The University is a leader in vehicle electrification as well as vehicle and equipment automatization, the combination of which will lend itself to mining companies, allowing them to take lucrative risks underground without putting miners in harm’s way. This important work is made possible through research and development grants.

McMaster has also partnered with a supplier to develop a private 5G network, which has potential to connect remote mines to the outside world and give them the ability to distribute large amounts of data quickly, increasing the safety of people and the environment. The added benefit of this kind of high-speed connectivity is that it’s not limited to the mine but can be extended to local communities.

But new technology will require the people who have the skills to deploy, fix and manage it effectively. As it is the graduate and postdoctoral researchers who will design and deploy the technology that will drive innovation in the largely fragmented mining industry, Canada can spark the sector’s green transition and open up careers that rival competing sectors by creating more opportunities for advanced research.


The Current State of Canada’s Research and Development Ecosystem

In late 2022, the Government convened an Advisory Panel on the Federal Research Support System to provide recommendations on how to modernize the government’s support for academic research, with a stated goal of better supporting the full spectrum of talent Canada needs.

The panel’s report, released in 2023, found that “A coordinated and agile federal support system that is equipped to respond to the needs of the modern research enterprise as well as emerging government priorities would provide great benefits to all Canadians. That said, success in science, research and innovation that is competitive on the global stage hinges first and foremost on being able to effectively support and retain Canada’s top research talent and build a research enterprise that fosters discovery of new knowledge through investigator-initiated research.”

The report also concluded that the current research and development ecosystem lacks sufficient coordination making it difficult for our science and research community to work toward common strategic objectives and for us to stay on par with our competitors, who are investing heavily in their own research and development.


Looking Ahead

Canada is at cross-roads. It’s apparent that we can’t reach our full potential without new technology and a skilled and highly educated labour force, both of which depend on a robust and specialized research and development strategy. Investing in and strengthening the federal research support system matters immensely for Canada’s critical minerals sector.

To transform our critical minerals and larger mining industry into a global powerhouse, one that adds value to our economy, we have to respond to the investments and innovation happening in other countries. If we don’t get moving, we’re going to be left behind.

This Policy Matters was written in collaboration with McMaster University and Universities Canada, members of the Canadian Chamber’s Critical Minerals Council.

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What We Heard: “Employment Inclusion of People with Visible and Invisible Disabilities” Inclusive Growth Dialogue

What We Heard: “Employment Inclusion of People with Visible and Invisible Disabilities” Inclusive Growth Dialogue

With diversity, equity and inclusion (DEI) efforts often focusing on race, gender, and ethnicity, it's critical to expand these discussions to also include accessibility and people with visible and invisible disabilities, including neurodivergence.

In October (Disability Employment Awareness Month), we hosted two Inclusive Growth Dialogues on the topic of “employment inclusion of people with visible and invisible disabilities”.

With diversity, equity and inclusion (DEI) efforts often focusing on race, gender, and ethnicity, it’s critical to expand these discussions to also include accessibility and people with visible and invisible disabilities, like neurodivergence.

The first dialogue was held on October 4, in Guelph, Ont., in partnership with the Guelph Chamber of Commerce, and the second on October 5, in Coquitlam, B.C., in partnership with the Tri-Cities Chamber of Commerce.

Guelph Inclusive Growth Dialogue:

Keynote speaker: Mark Wafer, former President and CEO of Abilities Canada and disability inclusion advocate

Panellists:

Coquitlam Inclusive Growth Dialogue:

Opening remarks: Stephanie Cadieux, Chief Accessibility Officer, Government of Canada

Keynote speaker: Marco Pasqua, award-winning entrepreneur, and accessibility consultant

Panellists:

Here are some of the highlights from these important dialogues:

Building Trust

As trust significantly affects whether individuals disclose their disabilities in professional settings, it is critical that employers cultivate a workplace culture of understanding and mutual support. This can look like encouraging ongoing DEI and accessibility learning, complying with accessibility legislation and regulation, normalizing conversations around disabilities (including neurodivergence) and hiring dedicated staff who support the organization’s accessibility and inclusion initiatives.

Shifting the Workplace Mindset

Though a lot has been done to counter the false narrative that people with disabilities do not contribute to the economy, more is needed. Organizations must take a definitive stand on inclusion and accessibility — and they don’t need to develop a flawless plan before they begin. A mindset shift in the workplace starts from the top down, with executives following the guidance of the disabilities community and demonstrating a commitment to accessibility and DEI through conversation, education and accommodation.

Local chambers can encourage businesses to reframe their perspectives on individuals with disabilities by providing educational resources and training programs that address and correct misconceptions that form barriers to employment.

Recruitment and Hiring

Businesses should work towards normalizing the presence of people with visible and invisible disabilities in the workplace, which will likely involve updating hiring practices to prioritize equity and inclusion. For instance, being upfront about their willingness to provide accommodations rather than waiting for the applicant to disclose their need first. Organizations do not need to wait until their environment is accessible to hire people with disabilities but can recruit first and then provide accommodations based on the new hire’s needs. Local chambers of commerce can encourage inclusive hiring practices by applauding businesses that demonstrate effort and commitment to inclusion through awards and public recognition.

Accommodations in the Workplace

Accessible workplaces have a higher employee retention rate, yet many people wrongly assume that the cost of accommodations is too high. However, simple changes like desk heights or lighting can go a long way. Other examples of accommodations include:

  • Using tools like transcription services during meetings to ensure that everyone has equal access to information.
  • Reevaluating workplace documents and forms to ensure they are straightforward.
  • Adopting flexible workplace policies around work hours, work environment and job duties to accommodate different needs.
  • Encouraging clear and inclusive communication by considering the pace of speech and avoiding idioms that might be confusing.

Understanding that everyone can be held to the same expectations, but may need different accommodations to meet those expectations, is fundamental to the development of more accessible and neuroinclusive workplaces that see accommodations as the norm rather than an exception.

The Role of Chambers of Commerce

The role of chambers of commerce as connectors and in promoting the inclusion of people with disabilities in the economy is pivotal. Chambers can facilitate conversations, implement training programs for employees and employers on working with individuals with disabilities, encourage big businesses to reflect on current practices and engage in education, initiate regular networking events and spaces that create opportunities for diverse voices to be part of key decision-making processes, and amplify the services available to both individuals with disabilities and organizations seeking to hire them. Chambers can also set tangible accessibility and inclusion goals and hold entities accountable for meeting them. But most importantly, chambers themselves must embody the same practices they encourage businesses to adopt.

About the Inclusive Growth Dialogues

At the Canadian Chamber of Commerce, we believe that diversity, equity and inclusion (DEI) are essential to fairness of opportunity, competitiveness of business, and our nation’s economic growth and prosperity. Our Inclusive Growth initiative advocates for a business environment that works for everyone, paying particular attention to groups of the population that historically and presently face barriers, preventing them from fully participating and thriving in our economy.

Through our Inclusive Growth initiative, we aim to mobilize the knowledge and resources of the Canadian Chamber Network to be a strong agent for change. In collaboration with the Canadian Chamber Network, we co-hosted five Inclusive Growth Dialogues in 2023. These dialogues provide an opportunity to identify challenges and opportunities relating to the role chambers can play in advancing economic reconciliation and fostering a more inclusive business community.

A What We Heard blog will be produced for all five Inclusive Growth Dialogues, so be sure to come back for those insights. The Halifax Inclusive Growth Dialogue’s What We Heard blog is available now.  

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Guarding Against Business Email Compromise (BEC): Protecting Your Business in an Evolving Threat Landscape

Guarding Against Business Email Compromise (BEC): Protecting Your Business in an Evolving Threat Landscape

This blog was provided by John Hewie, National Security Officer, Microsoft Canada.

This blog was provided by John Hewie, National Security Officer, Microsoft Canada.

Have you ever received a suspicious email from your colleague asking for urgent help – but something about the tone or language is not quite right? Or clicked on an invoice from a repair company that seems unfamiliar and claims to be overdue?  If so, you’re likely one of the hundreds of thousands of people and organizations targeted daily by Business Email Compromise (BEC) attacks.

While ransomware often gets the most of the attention in the news, Business Email Compromise contributes up to 100 times more in financial losses vs ransomware payments according to the FBI 2022 Internet Crime Report. Individuals and companies of any size using email for communication could be at risk for BEC. If a business email compromise attack is successful, your business could lose hundreds of thousands of dollars, face widespread identity theft or accidentally leak confidential data like intellectual property or personal information. In 2020, the Canadian Anti-Fraud Centre (CAFC) recorded a total of nearly $30 million in reported losses due to BEC scams, while the first six months of 2021 alone saw over $26 million in reported losses.

Find out how this growing threat is impacting Canadian businesses and what you can do to protect your assets.

Understanding Business Email Compromise

Business email compromise (BEC) is a type of cybercrime where the scammer uses email to trick someone into sending money or divulging confidential company information. The culprit poses as a trusted figure, like a boss or vendor, then asks for a fake bill to be paid or for sensitive data they can use in another scam.

With the increase of hybrid work environments in recent years, communicating and collaborating primarily by email has become the norm, leaving more organizations vulnerable to BEC attacks. In the past year, the frequency of BEC attacks has skyrocketed globally. Between April 2022 and April 2023, 35 million business email compromise attempts were detected and investigated by Microsoft Threat Intelligence, for an average of 156,000 daily attempts.

As new technologies and innovations are introduced, threat actors work quickly to adapt their techniques and evolve their use of technology to carry out more sophisticated and costly BEC attacks. The success of these attacks is largely due to the growing targeting of organizations of all sizes, including small businesses, the exploitation of trusted business relationships and development of more specialized skills by the threat actors.

Common Business Email Compromise Attacks

Here are the most common types of compromised email.

Data theft: Sometimes cybercriminals start by targeting the HR department and stealing company information, like a schedule or personal phone number. Then it’s easier to carry out one of the other BEC scams and make it seem more believable.

False invoice scheme: Posing as a legitimate vendor your company works with, the scammer emails a fake bill—often closely resembling a real one. The account number might only be one digit off. Or they may ask you to pay a different bank, claiming your bank is being audited.

CEO fraud: Scammers either spoof or hack into a CEO’s email account, then email employees instructions to make a purchase or send money via wire transfer.  They might even ask an employee to purchase gift cards, then request photos of serial numbers. Gift cards don’t offer the same protections as other payment methods, like credit or debit cards – once the scammer has used up the funds, there is no getting it back. Pausing to verify urgent requests from a boss by reaching out with a trusted email address or phone number is a simple way to foil these scams.

Account compromise: Scammers use phishing or malware to get access to a finance employee’s email account, such as an accounts receivable manager. Then the scammer emails the company’s suppliers fake invoices that request payment to a fraudulent bank account.

Tips to Prevent Business Email Compromise

Follow these five best practices to stop business email compromise:

Use a secure email solution: Email apps like Office 365 automatically flag and delete suspicious emails or alert you that the sender isn’t verified. Then you can block certain senders and report emails as spam. Defender for Office 365 adds even more BEC prevention features like advanced phishing protection and suspicious forwarding detection.

Set up multifactor authentication (MFA): Make your email harder to compromise by turning on multifactor authentication, which requires a code, PIN, or fingerprint to log in as well as your password.

Teach employees to spot warning signs: Make sure everyone knows how to spot phishing links, a domain and email address mismatch, and other red flags. Simulate a BEC scam so people recognize one when it happens.

Set security defaults: Administrators can tighten security requirements across the entire organization by requiring everyone to use MFA, challenging new or risky access with authentication and forcing password resets if info is leaked.

Use email authentication tools: Make your email harder to spoof by authenticating senders using Sender Policy Framework (SPF), DomainKeys Identified Mail (DKIM), and Domain-based Message Authentication, Reporting, and Conformance (DMARC).

Reduce your attack surface: Ensure email forwarding and use of legacy protocols like POP/IMAP is disabled at the organization level.

Adopt a secure payment platform: Consider switching from emailed invoices to a system specifically designed to authenticate payments.

If you’re organization has fallen victim to BEC, you’re not alone. Contact your local police as soon as possible. The Royal Canadian Mounted Police guidance on BEC and reporting is here.

The ever-evolving cyber threat landscape presents growing challenges to all businesses. By understanding the evolving nature of BEC and taking proactive measures, you can protect your business from these sophisticated threats. Joining forces in the fight against cybercrime is essential – it’s a collective responsibility to improve cyber resilience and ensure the safety of your business and its data. To boost your cybersecurity knowledge visit Microsoft Security 101 for free training resources.

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Canadian Chamber of Commerce Testifies on Bill S-244

Canadian Chamber of Commerce Testifies on Bill S-244

An Act to amend the Department of Employment and Social Development Act and the Employment Insurance Act to establish the Employment Insurance Council.

On Thursday, November 30, our Senior Director, Future of Work, Diana Palmerin-Velasco testified in front of a Standing Senate Committee on Bill S-244, an Act to amend the Department of Employment and Social Development Act and the Employment Insurance Act to establish the Employment Insurance Council. We support the establishment of the Employment Insurance Council to strengthen the work that the Employment Insurance Commission has done to facilitate business and labour input into employment policy in Canada.  

WATCH THE TESTIMONY AND READ THE FULL REMARKS BY DIANA PALMERIN-VALESCO BELOW.

Good morning Madam Chair, Deputy Chair and committee members, and thank you for the opportunity to appear today as part of your examination of Bill S-244, an Act to amend the Department of Employment and Social Development Act and the Employment Insurance Act to establish the Employment Insurance Council.


I’m Diana Palmerin Velasco, Senior Director, Future of Work at the Canadian Chamber of Commerce. The Canadian Chamber of Commerce represents some 200,000 Canadian businesses, through more than 450 local, provincial and territorial chambers, plus 100 association members.


The Canadian Chamber has played a leading role in the discussions resulting in this Bill and has officially endorsed it. Our President and CEO, The Honourable Perrin Beatty, has stated that:


“With the creation of an employment insurance advisory council, Senator Bellemare’s Bill S-244 will enshrine a true and meaningful tripartite approach between business, labour and government. This will ensure that the Employment Insurance program is sustainable, responsive, non-partisan, inclusive and relevant for the current and future generation of Canadian employers and employees”.


The Canadian economy faces multiple challenges, and the world of work is rapidly changing. In the context of the post-pandemic recovery, an aging population, skills shortages and transition to the digital and green economy, we need to create conditions for business, labour and government to work together as true partners. To achieve this, productive dialogue and exchange of ideas and information among partners must continuously take place through an ongoing process of engagement designed to build mutual understanding.


One of the main purposes of Bill S-244 is to enhance social dialogue within the Canada Employment Insurance Commission. Since 1990, employers and workers fund the EI system in its entirety. As a matter of principle, it’s only fair that business and labour have access to a tripartite institutionalized structure through the establishment of the Employment Insurance Council. This Council would allow business and labour to provide advice and agree on mutually acceptable and beneficial recommendations regarding labour market policies. Particularly, as they relate to employment insurance and skills development.


The International Labour Organization (ILO) defines social dialogue as “a tripartite process where all types of negotiation, consultation, or simply exchange of information between, or among, representatives of governments, employers and workers, on issues of common interest relating to economic and social policy take place”.


Unlike consultation, social dialogue is not a short lived, unilateral process. It is a proven governance tool that has worked well in several countries and across several international organizations. Successful social dialogue structures and processes have proven potential to resolve important economic and social issues.
The Canadian Chamber of Commerce supports the establishment of the Employment Insurance Council to strengthen the work that for almost 20 years, the Employment Insurance Commission has done to facilitate business and labour input into employment policy in Canada. Employers are invested in the viability of the EI program and as such we want to be true partners in finding and implementing solutions to ensure a well-functioning system that meets the needs and expectations of Canadians.


Thank you for providing me with this opportunity to appear, and I would be pleased to take any questions you might have.

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