Thank you very much.
Good afternoon, Mr. Chair and distinguished members of the committee.
My name is Shereen Benzvy Miller and I am the Assistant Deputy Minister for Small Business, Tourism and Marketplace Services at Industry Canada.
I would like to begin by underscoring the importance of small and medium-sized enterprises—or SMEs—to our economy.
SMEs account for more than 99% of all businesses in Canada. They provide approximately 52% of total private sector GDP and account for 40% of the value of exported goods. There are some 1.1 million SMEs across the country and they are found in every sector. The vast majority of SMEs, 87%, are very small, with less than 20 employees. They are also the job creators. Between 2002 and 2012, small businesses accounted for 78% of new private sector jobs.
Industry Canada's mandate is to help make Canadian industry more productive and competitive in the global economy. This intersects directly with the interests of SMEs. We work to ensure that our economic framework policies promote competition and innovation, support investment and entrepreneurial activity, and instill consumer, investor, and business confidence. We encourage business innovation and productivity because businesses generate jobs and wealth creation.
More specifically, we take action to help SMEs to overcome challenges, including those related to exporting.
We are in an era of free trade, reduced tariffs and information and communications technology (ICT) that facilitate commerce across borders. Exporting SMEs, on average, generate higher sales and return on assets, while undertaking more research and development activities than non-exporters. In other words, they participate in activities that are synonymous with growth.
We are focusing our efforts in three areas: venture capital, consulting, and supporting financing.
We are increasing the availability of risk capital through the venture capital action plan. IRAP, the industrial research assistance program, helps by providing technology assistance to innovative SMEs and working to commercialize Canadian products and services. BDC provides consulting services to help SMEs get export ready and to expand into international markets. You will hear more about that from my colleague Michel. It also provides about $4 billion each year in financing, including for those firms that export.
Thank you so much for the opportunity to speak with you regarding how we can better support Canadian SMEs, and I will be happy to take your questions when the time comes.