68 ~ Wednesday, October 27, 1993 - North Shore News CHALLENGE Entrepreneurs gearing up for economic growth AFTER THREE years spent hunkered down rid- ing out the recession, astute Canadian entrepre- neurs are on the offensive again. They are formulating Strategy and tactics that will enable them to capitalize on the opportunities which accompany renewed cco- nomic growth. New opportunities also bring new challenges. Businesses that don't react quickly enough to the'chal- lenge of change may soon find themselves relegated to Stagnation or even extinction — entrepreneurial dinosaurs _ that couldn't adapt to a new - competitive environment. “In an era of ever-increas- ing competition from both domestic. and forcign sourc- - es, being-on top now doesn't guarantee staying on top. » There. are always, rivals’ out there in the marketplace Waiting to unseat successful companies that grow compla- cent resting on their laurels. It's time for operators of smali and medium-sized businesses in Canada to shift out of survival mode and look to the future — a future that appears to hold the promise of renewed prosperi- ty. Truc, consumer confi- dence remains. somewhat shaky as a result of continu- ing high unemployment. But from all indications, the Canadian economy is finally on the mend. In fact, the latest forecast of the 24-nation, Paris-based Organization for Economic Co-operation and Develop- ment (OECD) indicates that Canada will outstrip all other major industrialized coun- trics in terms of real cconom- ic growth over the next two years. Statistics are encouraging Consensus forecasts envi- sion Canada's gross domestic product (GDP) expanding by about 3% in 1993 and 4% in 1994, Retailing, exports and spending on business machinery and equipment are leading the recovery. Inflation is running at less than 2% and interest rates are lower than they've been in more than a quarter of a cen- tury. Those GDP growth fig- ures admittedly are less than spectacular as post-war eco- nomic rebounds go, but recession-weary Canadian ‘businesses should take solace from the fact that the imme- diate prospects for their home market are consider- ably brighter than those faced by entreprencurs in tradition- al economic powerhouses such as Germany and Japan, now mired in slumps. Indeed, given the. relent- less shift towards a, single global! marketplace, the rela- tive attractiveness of a revi- talized Canadian economy will no doubt lead to even . greater competition from for- cign firms secking to com- pensate for disappointing prospects in their own back yards. Size up the competition IThis is all the more reason for Canadian entreprencurs to take stock of their compet- itivencss, to make whatever changes might be warranted to ensure that their firms ‘are in fighting trim to handle the increased competition — sind the increased opportunities: A good way to begin is by sizing up the competition, ‘analysing their strengths and Statistics show small businesses are erowing | IN 1991, the latest year for which sta- . ‘ tistics are available, there were a total of 922,000 businesses operating in : Canada. = OF these: 911,000 or 99% had fewer than 100 employces; 853,000 or 93% had fewer than 20 emoloyees. ~~ Since 1979, there has been a 48 per “cent increase in the number of. busi- nesses registered in Canada. Small businesses with fewer than 100 employees operated i in these key :sectors: .. * Retail trade, 16% ¢ Construction, 12% “ «Business services, 9%. . “Accommodation or food and bever- age services, 7% Other, 20% employees. The majority of net new jobs are created by small businesses. Between 1990 and 1991, new businesses were formed. This rep- resents a start-up rate of 16% (number of new. businesses as share of total number of businesses). Between, 1990 and 1991, businesses ceased operating (including Put our combined 60 ">, years of experience in the jewellery industry to work for you. “We would ‘be pleased to”help you get exceptional value for your money and help you make informed choices about what will bring you the mos: pleasure and satisfaction from your jewellery purchases.” We have many new exciting items in gifts and jewellery in stock for you to choose from. You are invited to our Semi-Annual Storewide Sale _ 5 Days Only From Tuesday, October 26th Until Saturday, October 30th 25% OF Do you need a gift for a special person? Perhaps a‘treat for yourself? Now is the time to do it. Remember: Graduation! Christmas! Anniversary! Birthday! Plan to take advantage of our exceptional values and services. Remember, our tagged prices include: all federal and provincial taxes, and, we don’t increase our prices, just so we can give you a discount. This is a REAL SALE. PLAN AHEAD — take advantage of our lay-away program. We hope to see you during these days. HINT! HINT! TSAW IT AT.. “The little store with a little bit rove” Edgemont Village Jewellers 3102 Edgemont Blvd. Fax 983-3230 985-1500 * Finance or real estate, 7% « Manufacturing, 6% Other services, 23% Businesses employing fewer than 100 employces accounted for 38% of total private sector payrolls in 1991 and employed 45% of all private sector firms that were sold, voluntarily merged with another company, wound down by the owner as well as failures). This represents a closure rate of 17%. 1989. Of businesses opezating in 1979, 43% survived (were still operating) in ‘The survival rate varied by industry sector: 38% for businesses and person- 148,000 158,000 al services, 40% for retail trade, and construction, 53% for manufacturing and 70% for community services. ' These statistics were drawn from Statistics Canada data and an Industry, Science and Technology Canada . report, Small Business in Canada, 1991 —~.From Best Practices to Competitiveness. ON EXCLUSIVE _ CHRISTMAS PORTRAITS | Fine portraiture isn't expensive. It’s priceless.” Be photographed in studio or in your favorite location. Book now before November 15/93. Value up to $75. ‘STILL IMAGES “People, Places, Things” © Exclusive Creative Portraiture” 983-9700 pager 640- 8453 | Black & White Fine Art Portraits © Head Shots * Fashion Portfolios Cellular 671-4715 66 Heightened competition has created an environment where companies can —and do — demand more of their suppliers, 99 weaknesses in terms of costs, ° quality and customer service. In areas where you don't Measure up, adopt the stan- dards of your toughest rival as a benchmark to reach or surpass. Restructuring necessitated by the protracted recession has left most Canadian small businesses Jeaner and more agile. Consequently, the ben- efits of improved business conditions (increased sales and firmer prices) should show up quickly on their bot- tom lines. The real winners in the post-recession cra will be those proactive entrepreneurs who go the extra mile to ensure they can take advan- tage of any opportunities that come their way. Adopt strategies for success Going the extra mile does not mean reverting to the business practices of 1980s . excess — blithely loading up on inventory in anticipation’ -. of increased orders, for. . instance. Instead, smart manufac- turers are turning to just-in-_.- . tomer service at a reasonable: time supply strategies and forging closer links with key suppliers, tactics which enable them to respond quickly to handle increased business while avoiding the pitfalls of inventory stockpil- ing. A key to business success in the 1990s is improved pro- ductivity — which invariably .. entails investment in both -people and infrastructure.- Purchase of computers and related business automation technology is chiefly . responsible for the double- . digit increase this year in spending on business machinery and equipment — and with good reason, ’ If your company isn’t yet © a beneficiary of the techno- logical revolution, it proba- bly should be. Relatively inexpensive high technology’. now is within reach of. most’ smali and medium-sized. enterprises. Properly utilized, comput.’ ers and automated production equipment can. give’ your - company a real boost up the,: competitiveness ladder by increasing productivity while helping to contain payroll costs, Another business strategy that is paying off these. days: — and which particularly lends itself. to small ‘and Medium-sized enterprises — ‘is one that highlights quality and customer Service. . Heightened competition has created an environme where companies can — and do — demand more of their suppliers.. ; Being. the low-cost pro- ducer is, in itself, no guaran- tec of success. {f you can offer a top-quality product price, chances are you'll best: the would-be rival who com- petes on price alone. - . Benchmarking, total qual- ity management, highlighting _ Superior customer service,’ harnessing new technolog to improve productivity these are just a few of. the: Strategies you might want-to consider to help ensure that. -your busiriess stays onto The key is to be proactive: -incsresponding to the chal lenge of achanging econo- my... tot : A history of celebrating Canadian entrepreneurs, From page 67 country about the important * economic benefits they pro- duce. They wanted to tell people about the jobs they ‘create, about the products they develop, about the new markets they explore. Most importantly, they were anxious to tell people that small business had come of age — that they were just as committed, daring and innovative as their big busi- hess counterparts. Riding high on the suc- - cess of the 1979 experience, FBDB staff in B.C. repeated Small Business Week in 1980 and tripled the number of sessions held for local business. In 1981 the week was adopted nationally by the bank and endorsed by the Canadian Chamber of Commerce (CCC). Since that time, the FBDB and the CCC, along with co- sponsors in Atlantic Canada,’ Quebec, Ontario, the Prairies, - Northwest Territories, B.C: and the Yukon, organize business fairs, exhibits, : workshops, conferences, lun- cheons, award ceremonies; and much more. ; Each year, a theme is cho sen for Smal! Business Week - which reflects the current concerns of small business.’ This year's thenie is’: Challenge and Change — Staying on Top which high- lights new challenges and opportunitics for entrepre- neurs within the context of upcoming economic recov-. ery. Through this theme and ° the organization of informa- tive events, the FBDB and the CCC aim to increase: awareness of the vibrant small business sector, and’ give entreprencurs the chance to mect, learn and exchange important management infor- mation.