Struggling businesses holding back economy

Over the past two years, Canada’s economic recovery has lost steam.

And one of the best ways to reignite growth is to boost “business investment spending through selective tax incentives” that encourage the “expansion of small and mid-sized businesses,” says IIAC president Ian Russell in his latest industry letter.

Though Canada’s capital market infrastructure for small businesses is strong, Russell finds the past few years have been challenging for business owners and those who support them. In particular, he says companies have held back on “issuing new shares in public and private markets.”

Further, “small business equity financings (measured as offerings of $20 million or less) totaled $2.5 billion this year on an annualized basis, down 40% from 2012 levels and down a further 40% from the previous year.”

Read more on the challenges businesses face, and on how capital gains tax changes could benefit businesses and the economy.

Also check out:

Ontario dividend tax rules change

10 rising-star businesses

Help biz owners pass the torch

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.