Québec, the October 22, 2024 – A delegation from the Federation of Chambers of Commerce of Québec (FCCQ), composed of some twenty entrepreneurs, chambers of commerce, and organizations that support them on a daily basis, is visiting the National Assembly of Québec today to urge the government of Québec to quickly introduce measures that will provide a real boost to Quebec’s small and medium-sized businesses and entrepreneurs, who continue to suffer from the unfavorable economic climate.
This initiative is strongly supported by the accelerators Innovation Movement of the Québec (MAIN), as today’s startups will be tomorrow’s SMEs, and it is important to have an environment that fosters the emergence of these innovative startups.
The FCCQ and MAIN remind us that small and medium-sized businesses employ more than 3 million Quebecers, generate over $10 billion in tax revenue annually, and are the lifeblood of our small towns, our regions, and our Québec Inc.
“Entrepreneurship isn’t doing very well in Québec. The rate of new business creation is lower than in Canada, the business insolvency rate is rising, and our villages are slowly losing their local shops. The government must do everything in its power to reverse these trends—and quickly.”, says Philippe Noël, vice president of Public and Economic Affairs at the FCCQ.
"In this context, asking the government to pay more attention to our small and medium-sized businesses and our startups is not a whim; it should be a national priority. For several years now, Quebec businesses have felt as though they are operating on the margins of government priorities, and we believe this inaction must change. Instead, our public policies should support sufficient rates of business creation, startup survival, and the next generation of entrepreneurs to ensure that our economic fabric does not irreversibly wither away in the years to come.”, says Louis-Félix Binette, CEO of MAIN.
Access to Public Procurement
Another major issue identified by the FCCQ is the ability of our small and medium-sized enterprises to secure public contracts. Specifications are too often modeled after the solutions proposed by large companies, leaving little room for innovation.
We need government action to address certain challenges related to access to financing, as well as to ensure that these startups can secure their first public contracts, which will then enable them to win additional sales both locally and internationally.
“Currently, bid specifications are ill-suited to the reality and expertise of our small and medium-sized enterprises, which makes public procurement unattractive to our businesses. The government must take decisive action to encourage our SMEs to participate in Quebec’s public procurement market so that they are not at a disadvantage. The government can, through regulations, ensure that public contracts are primarily awarded based on criteria such as quality, sustainability, innovation, and environmental performance—in addition to price—for flagship projects.”, said Sandra Rossignol, president and CEO of the Saguenay-Le Fjord Chamber of Commerce and Industry.
Taxation
The corporate tax system is complex, and tax compliance requirements are stringent for our small and medium-sized enterprises (SMEs). Particularly because of their convoluted eligibility criteria, fewer than 5% of these businesses are able to take advantage of the tax credits available to them.
“Quebec SMEs face a heavier tax burden than their competitors, particularly with regard to payroll taxes—even on their first $500,000 in revenue. The decision to follow the federal government’s lead by raising the capital gains inclusion rate is, moreover, highly ill-advised.”, says Éric Dufour, vice president and partner at Raymond Chabot Grant Thornton.
The FCCQ points out that a significant and growing number of businesses—many of which are family-owned—will need to prepare for a transfer or sale in the coming years.
“In light of these findings, our expectations are clear. The government must abandon the increase in the capital gains inclusion rate—which has sparked widespread discontent among entrepreneurs—reduce the general corporate tax rate from 11.5% to 10%, and make simplifying the corporate tax system a priority in its ongoing review of tax expenditures.”", concluded Éric Dufour.
Administrative and Regulatory Burden
In the view of the FCCQ and its delegation, the first step should be to address the administrative and regulatory burden, which hampers the productivity of our small and medium-sized enterprises (SMEs) and constitutes a form of indirect taxation. The Law 25 on the protection of personal information places a disproportionate strain on the limited resources of our SMEs.
“The government must understand that it is more necessary than ever to better support small and medium-sized enterprises (SMEs) through its government actions to help businesses weather the storm first, and then contribute to the economic targets of Québec. Among the measures that would help businesses is targeted assistance for SMEs to cover the substantial investments required for compliance with Law 25. Furthermore, the goal of introducing annual bills on regulatory and administrative relief must be significantly scaled up, which should help ensure consistency in government action across the various ministries and public agencies.”, said Manon Champagne, president and co-founder of Aplus Transition.
Members of the delegation present at the National Assembly of Québec today:
Philippe Noël, Vice President, Public and Economic Affairs, FCCQ
Éric Dufour, Vice President and Partner at Raymond Chabot Grant Thornton, and Chair of the FCCQ’s Entrepreneurship Committee
Mylène Duguay, President and CEO, Cabana Séguin
Luc Pariseau, Attorney and Partner, Lavery Avocats
Marcel Curodeau, President, Médial Conseils SST
Paul Le Brun, President, Brault & Bouthillier
Manon Champagne, President and Co-founder, Aplus Transition
Guillaume Lajoie, Public Affairs Manager, MAIN Québec
Lanie Dufour, Public Affairs Consultant, Catapulte Communication
Sandra Rossignol, President and CEO, Saguenay-Le Fjord Chamber of Commerce and Industry
Alexandra Houle, Executive Director, Drummond Chamber of Commerce and Industry
Julie La Rochelle, President and CEO, Richelieu-Rouville Valley Chamber of Commerce and Industry, and President, Alliance of Chambers of Commerce of the Montérégie Region
Marie-Josée Morency, President and CEO, Greater Lévis Chamber of Commerce and Industry
Pierre Berthiaume, President and Chief Executive Officer, Les Moulins Chamber of Commerce and Industry
Marie-Christine Lavoie, Executive Director, Nouvelle Beauce Chamber of Commerce and Industry
Jade Bessette Poitras, Executive Director, Greater Joliette Chamber of Commerce
About the Federation of Chambers of Commerce of Québec (FCCQ)
Thanks to its extensive network of nearly 120 chambers of commerce and more than 1,000 corporate members, the Federation of Chambers of Commerce of Québec (FCCQ) represents more than 45,000 businesses operating in all sectors of the economy and throughout the province of Québec. As the largest network of businesspeople and companies in Québec, the FCCQ is both a federation of chambers of commerce and a provincial chamber of commerce. Its members—whether chambers or businesses—all share the same goal: to foster an innovative and competitive business environment.
About the accelerators Innovation Movement of Québec (MAIN)
The accelerators Innovation Movement of the Québec (MAIN) is driven by the conviction that startup support organizations can amplify their impact by working together. Its goal is for every startup, wherever it is located in Quebec, to have the fastest possible access to the best available resources to support its development and growth. Its mission is to support, develop, and implement projects capable of revitalizing this ecosystem and increasing the value and impact of the services offered to startups in the Québec region. For more information, visit https://mainqc.com
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For more information:
| Javier Garcia Public Relations Officer Federation of Chambers of Commerce of Québec C. 438 408-3731 T. 514 844-9571 poste 3586 javier.garcia@fccq.ca |