Randy Richards
Seasoned local economic development expert from Canada
(Українська) Департамент економічного розвитку та туризму округу Страскона
The Federation of Canadian Municipalities invited Mr. Randy Richards, a seasoned local economic development expert from Canada, to take part in the 3rd City Development Institutions Forum held in Kryvyi Rih. Randy Richards is Commercial Development Manager from Strathcona Country Economic Development and Tourism. At the Forum Mr. Richards will be talking about municipal support for small and medium-sized enterprises (SMEs) in Canada and will share Canadian best practices with representatives of Ukrainian local governments, business community and citizens.
Having worked in municipal administration for 25 years, Randy Richards believes in the importance of providing support for SMEs to stimulate local economic development. Prior to his departure for Kryvyi Rih, Mr. Richards explained the PLEDDG team in what ways Strathcona County Economic Development and Tourism (EDT) was helping the local business community.
– «Canadian municipalities have various sources of revenue, with the majority coming from property tax based on the value of the property. For example, in Strathcona County 74% of revenue comes from property tax. 64% of that comes from non-residential properties, and 36% from residential properties. Municipal governments also receive federal and provincial grants. In general, of all taxes collected, the largest portion – 57% – goes to the federal government, 37% of the taxes goes to the province, while the municipal government get about 6%.
The larger municipalities usually have economic development departments which are responsible for local economic development. Economic developers elaborate economic development policies, the main goals of which are to generate tax revenue for the municipality and create employment.”
Since business activity creates employment opportunities for residents, municipal governments encourage and support businesses in every possible way. In Strathcona County there are both large industrial companies, which make the largest tax payments, and a great number of SMEs. “Cooperation between the municipal government and businesses is based on the principle that “activity creates activity”, explains Mr. Richards.
According to Mr. Richards, small business is the heart of a province. This is precisely why municipal governments give so much attention to small businesses and start-ups. Small businesses are strongly represented across Alberta’s economy, accounting for 95% of all businesses in the province. They contribute to 25% of Alberta’s GDP and are responsible for 35% of Alberta’s private sector employment.
Mr. Richards noted that the province has recently approved a small business strategy -“Alberta’s Small Business Strategy”, – which makes it easier for small business to better understand and comply with regulatory requirements and is aimed at enhancing and accelerating entrepreneurship in the province.
Strathcona County, in partnership with the local Chamber of Commerce, banks, lawyers, tax experts, labor experts, and business leaders, organize new entrepreneur start up seminars for people who want to start their own business. Those seminars are aimed at educating people on many of the issues to think about prior to venturing out.
Also, in partnership with the Sherwood Park and District Chamber of Commerce, Strathcona County runs business mentorship programs, which bring together seasoned entrepreneurs to mentor new business owners. If a party is interested in either role, they contact EDT and register for a small fee. They later meet based on a schedule that meets both parties’ needs.
In addition, in conjunction with the Canada’s Small Business Week, Strathcona County organizes a Small Business Symposium. The event is held every year. At the symposium, there is generally a chief economist that provides the keynote presentation. This year there were 20 non-profit business support organizations on site to provide information and resources”, said Canadian expert.
Mr. Richards went on to talk about another interesting municipal initiative which is business visitations. “At EDT, we do two types of business visits. One more formal visit include the Mayor, the Ward Councillor, the deputy Mayor, the Executive Director of the local Chamber of Commerce, and a representative from administration. This is an opportunity for the leaders in our community to show appreciation directly to the business owners and operators and to thank them for running their business in Strathcona County. It is also an opportunity for the business owners and operators to voice their concerns or frustrations to an audience that has the power to make positive change. Generally the visit includes a presentation about the business being visited followed by a tour of the facility. The second type of business visit is a one-to-one meeting with the business owner and a representative from administration. At these visits a survey is completed, and the two discuss challenges and opportunities for the business. The representative from administration will follow-up with information and resources for the business owner based on the conversation”.
In order to stay connected with the business community, the department issues a monthly eNewsletter, which provides updates on business news, opportunities and tourism events. “Through the eNewsletter, we communicate information that we feel is relevant to business owners in Strathcona County”, Mr. Richards said. In order to subscribe to the eNewsletter, one can access the department web page (the link below) and subscribe to it by following simple rules.
http://www.strathcona.ca/departments/economic-development-and-tourism/
“These are just some ways that our municipality supports business. Each municipality chooses different ways that best suits their needs and considering the financial resources they have available. It also depends on their economic niche. Many municipalities work on diversification of their economy and support of innovation and new ideas”, Mr. Richards says.
In Canada SMEs enjoy the strong support at all levels, including at the municipal level. The reason for that is that in Canada both municipal governments and the federal government understand that the overall economic performance of any given country is driven by the development of SMEs in the county and the growth and expansion of those businesses.