Building prosperity for the future: An SME perspective on productivity in Atlantic Canada

Prosperity of a state is determined with the level of production capacity the state has. Multiple resources are consolidated to ensure that there is increased production. Human capital is one of the key instrument or tool that is vital in ensuring that a state or a country achieves its productivity. In this report: Building prosperity for the future: An SME perspective on productivity in Atlantic Canada” produced by the Canadian Federation of Independent Business (CFIB) productivity on Atlantic Canada on its SMEs is examined. Despite projecting and suggesting vital things that need to be done the report has some flaws that needs to be revisited.

Based on the report, I do conquer with the views that, labour is the pillar of any achievements and growth in economic. The aging labour form in the Atlantic regions is something that needs to be given much attention to ensure that there is wider gap in their labour sector. In most cases, such economy is deemed to collapse and come to a standstill especially where young generations are not being integrated and entrenched in the labour force to take on the responsibilities left by those aging workers. Another threat to the labour market in the Atlantic region is the ever-increasing rate of immigration of young people and low level of people migrating to the region to take on the jobs that are being left by the aged and retiring work force. This therefore, puts a threat to the SMEs and the survival in future.

Another thing that I age with the report is the need for people in SME to invest in capital assets, people and technology. Technology has become an important part in doing business in this current era. Technology comes with a lot of advantages such as increase in market and faster and lower cost of carrying out business. However, this should not be overlooked as it also have some flaws that needs to be addressed. Poor and lack of understanding on the kind of technology to adopt may be a threat to a company especially SME. There are many loopholes in using technology such as cases of fraud that needs to be well scrutinized and sealed to avoid being a liability to the business. Human capital is yet another issue that the reports points out that is important for the SMEs in their running and increasing of their production. Training of these personnel is key to equip tem with relevant skills and competencies to provide better services. The quality of training is also not well explained and stated. The training should be up to the international standards to ensure to keep up with the competition on the global scene

Investments in capital assets are also a pillar to increasing in producing. I do support and hold similar views on investing in capital support. However, such investments should also be done well to avoid instances where, the business lacks sufficient cash to expand its operation as most of the capital will be inform of assets.

Furthermore, here is a problem in the Atlantic region between the SMEs and the government. The relationship that exists between these two sectors is not conducive to stir economic growth and increase productivity. The government has not put in place salient mechanisms that can assist or encourage the local SME investor to work together and improve their business. Lack of knowledge or rather ignorance on most part of the SME people have also to some level contributed to poor relationships between the sector and government. For instance, few people are able to access to government programs while at the same time government has not initiative programmes to ensure that they reach these people in SMES and small medium business. This ignoring has led to many SMES failing to make decisive decisions on investment and have curtailed on their innovativeness.

I further agree with the report on the fact that government policies are vital in any operations of SME and medium size enterprises. Government is able to enhance an provide conducive environment for doing business through provision of incentives such as reduction in taxes, intervening in the business by regulating the way business should be enhanced and even providing security and financial facilities for at a subsidized interests to the SMS.

Likewise, I am not in tandem with the approach that the government and SMEs are relating and confuting their business. A lot is needs to ensure that the environment of doing business in Atlantic Canada is enhanced. All the stakeholders fro both the government and business sectors need to come together and discusses on the best way forwards t to ensure that they carry out their business in a better manner. Innovation it is not promoted as most of the SMES and medium size enterprises lacks the required facilities/ resources to enhance or promote innovation. Therefore, al these barriers should be eliminated to ensure that the government nod SMEs and medium size business function and operate well in good symbiotic relationships. There is no way t these two organs can stand independent since the government gets its revenues through taxes it receives from the business sector while these SMES earn their livelihood from their business activities.

The report, is well balanced and captures all the things such as insufficiencies that are marred in the SMES Sector in Atlantic region as well as the government role in the busines. There seems to be imbalance between the two and immediate efforts are required to ensure that there is balance to stimulate innovation and increase production. The report is good and is therefore recommendable to policy makers who have the mandate to implement it and see to it that it works for the benefits of the SMES and the government.

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