BDC Releases First-Ever Canadian Study on High-Impact Firms High impact firms exist in all sectors across New Brunswick and Canada Accelerating their competitiveness crucial to the economy

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There are over a million employer businesses in Canada but there are some that play a disproportionately larger role in provincial and Canadian economies in terms of both job creation and GDP growth.  As world economies become more globalized, the need to accelerate the competitiveness of these businesses in New Brunswick and across the country is not only pressing but crucial for maintaining Canada’s standard of living.
 
Business Development Bank of Canada (BDC) has identified high-impact firms as a cornerstone of the Canadian economy and is releasing fresh report findings comparing Canadian and American small and medium-sized businesses. The study examines the challenges these firms face and proposes actions to support their growth and in-turn accelerate Canada’s competitiveness. 

 

  •  Jean-René Halde, BDC’s President and CEO, is available by phone for interview to discuss the study and the importance of high-impact firms on the Canadian and New Brunswick economies.
  • Hazen Hawker, CEO of Fredericton based ADI Group Inc., is available to discuss his innovative high-impact firm, the challenges, and the entrepreneurial mindset needed in today’s economy.

 
High-impact firms:
High-impact firms can be found across all sectors in New Brunswick and across Canada. These high performing companies have a disproportionate impact on economic growth and have the following three characteristics:
 -Size: Mid-sized businesses (100 to 500 employees) with enough resources to invest, hire, innovate & export.
-Growth: Companies with a high growth rate which are growing more quickly than their overall sector (gaining market share).
-Mindset: Key ingredients include a strong desire to achieve and high-risk tolerance. (Study found entrepreneurs with higher risk tolerance had greater revenue growth and more international sales).
 
Challenges that are limiting HIF growth:
-New Markets: Small Canadian Businesses are under more pressure to expand abroad earlier and to a great extend than their U.S. counterparts
-Financing: Canadian entrepreneurs struggle more with obtaining higher risk financing versus their peers in the U.S. Financial institutions are slowly getting more comfortable with higher risk financing but these markets remain underdeveloped in Canada.
-Canadian business leaders are more risk averse. US entrepreneurs appear more likely to engage in behaviour that shows a higher risk tolerance than do Canadian business leaders.
-Management Capabilities: optimizing operations, strategic planning, ensuring human resources capacity for growth, lack of financial management skills, developing and executing sales plans.
-Labour: recruiting specialized labour is often cited by Canadian entrepreneurs as an important challenge.
 
 ADI Group - Local example of innovative high-impact firm and how they are addressing the challenges of the current economy:
- Fredericton based company specializing in the design and construction of industrial wastewater treatment systems for over 30 years
- Have 260 installations in more than 35 countries with offices in Canada, U.S.A., Brazil, and New Zealand
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