Thank you, members, for having us here today.
For over 20 years, the Regroupement des jeunes chambres de commerce du Québec has been supporting and growing a strong network of young people's chambers of commerce and youth sections throughout the province. The RJCCQ represents more than 7,000 young entrepreneurs, businesspeople and professionals aged from 18 to 40 from 34 different organizations. In addition to covering a vast territory, the RJCCQ represents eight culture-specific organizations, which gives it a unique perspective and allows it to defend its members well.
It is in indeed in our role as representatives and advocates that we have noted some concerns. At the RJCCQ, we believe that the demographic and economic changes of the next few years will have major repercussions. Furthermore, we believe that we must take on these changes properly and maintain Quebec's financial momentum. In order to do so, we suggest three strategic points.
The first is to consolidate. Canada's economy is based largely on a comprehensive and dynamic system of small and medium enterprises, working in all areas of business from the primary sector to the service sector. These companies are finding it increasingly difficult to maintain a competitive position on the world stage, not to mention that Canada is beginning to see its rate of entrepreneurship decrease compared to its international partners.
Without diminishing the role of big business, the RJCCQ continues to believe that Canada's economic strength lies largely in this complex web of small and medium enterprises. They are the cornerstone of our economic system. Today in Canada, 97.9% of firms have fewer than 100 employees. Unfortunately, many of these companies are destined to disappear or fall into foreign hands over the coming years. The reason is very simple: our entrepreneurs are growing older and approaching retirement. At that point, they will transfer the business as profitably as possible. Unfortunately, we are seeing more businesses being sold than businesses who have the next generation ready. We believe that this outcome is unacceptable. That is why we suggest that means of promoting the transfer of businesses to young entrepreneurs be implemented.
For the past few years, the RJCCQ has been advocating the introduction of a Business Ownership Access program. This BOA program would allow a young entrepreneur to use the funds in his or her RRSP to finance the purchase of a first business, without incurring penalties or taxes. The entrepreneur would then be required to repay the amounts within 10 or 15 years, ensuring he or she will not be penalized at the time of retirement.
As you know, the issue of credit, of a downpayment, is the main obstacle for people who want to buy a business, and the Home Buyers' Plan already exists. Buying a house is certainly a safe investment. Buying a profitable company is even more so. We therefore suggest that a similar program be created for purchasing a business.
We also believe—and it is our second strategic point—that we must invest in youth. The RJCCQ believes that the main challenge that stems from the aging of the Canadian population is ensuring inter-generational equity. Previous generations have enjoyed substantial benefits that are unsustainable now that the number of workers is decreasing. The RJCCQ is fully aware that it is impossible for the new generation of workers to enjoy the same benefits as previous generations, but we also believe that we must make sure that we do not have to pay the price.
To do so, the current government's efforts to return to a balanced budget must obviously be maintained. We congratulate the government for implementing a plan that is certainly bold. It requires a lot of sacrifice, I'll admit, but we believe that for the future of the country and the next generation of workers, it is the right path.
However, we also believe that we must take it a step further. Once the budget balance is restored, it will be important to prepare for the future by developing a plan to repay the national debt. The RJCCQ believes that the country's debt is a heavy burden to carry and undermines Canada's economic development.