Small businesses are essential for job creation and innovation. Their survival and growth are essential for: diversifying Alberta’s economy, global trade and applied research. The Alberta Council of Technologies Society released its Report today addressing why most of Alberta’s small technology businesses fail, and why survivors fail to grow.
The Report cites the consolidated results of a spring Survey of its subscribers and follow-on workshops held at numerous sites across Alberta. The Report is available HERE
Internal impediments to growth include processes requiring strong people skills in: customer, staff, supplier relations. External impediments include: manpower, municipal “red tape”, self-interest of multi-nationals, and banking practices. The early exit and sale of growing enterprises is cited as eroding Alberta assets. Mergers and acquisitions, a prime strategy for successful enterprises – again warranting people skills, is rarely cited by small businesses as a growth option.
Business incubators, research institutes, management consulting and industry associations ranked high as small business helpers.
Given the complex recipe for survival and growth, the Report recommends establishing a model Innovation Zone featuring collaborative economic development and engaging arts and technology interests. Also. recommended is a formal review of procurement practices and the valuation of intangible assets fueling the knowledge economy. And entrepreneurs need people skills, an appreciation of M&A as a growth option, and the facility to constantly adapt to support business processes essential for growth.