This paper investigates the economic impact of the Canada Small Business Financing Program (CSBFP) using the 2004 edition of the Survey on Financing of Small and Medium Enterprises. To avoid the usual self-selection problem associated with voluntary participation in such programs, the financing behavior of the business and its intention to grow are used as control variables. Based on this analysis, participation in the CSBFP would have increased growth in salary, employment and revenues by 12, 12, and 7 percentage points, respectively, between 2004 and 2006. Furthermore, CSBFP would have induced around 5,000 jobs, approximately 3.8% of those created in that time span by small private businesses.
Small Business Economics – Springer Journals
Published: Nov 5, 2010
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