OTTAWA—The current recession has led to a rise in unemployment across Canada, but with the help of stimulus measures and personal initiative, more Canadians have decided to work for themselves.
According to Statistics Canada, since the labour market downturn began last fall, unemployment has risen to 8.6 percent, the highest rate in 11 years, and self-employment has grown by 75,000, increasing by 37,000 in June, and 35,000 in July.
The Business Development Bank of Canada (BDC) reported a record increase in loans to businesses from April to June, during the first quarter of 2009-10.
Loans rose 37 percent compared to the same quarter in 2008, from $738 million to over $1 billion.
BDC, a financial Crown corporation mandated to promote entrepreneurship and assist small and medium-sized businesses, attributed the increase largely to the Business Credit Availability Program (BCAP) introduced in Canada’s Economic Action Plan in the 2009 federal budget.
Through BCAP, the BDC, Export Development Canada, and private sector banks are collaborating to make an estimated $5 billion available to businesses through various initiatives.
