Prospective Canadian small business owners might more easily secure funds from U.S. investors thanks to recently passed legislation
Recently, there have been some revisions to Canadian tax laws that might create a more favourable tax environment for foreign investment in Canadian companies. A report from the Washington Post indicates that American venture capitalists are already taking note of this new opportunity.
The tax changes amend Section 116, which had historically caused delays in the tax clearance process resulting in lower returns and - often - financial losses for foreign venture capitalists. The tax change eliminates hundreds of pages of paperwork for non-Canadian investors.
Canadian small business owners might soon finds new funds coming their way with this change. The source reports that a 2007 survey by Deloitte and Canada's Venture Capital & Private Equity Association showed that 28 percent of global respondents and 40 percent of U.S. respondents said they would not invest in Canadian enterprises primarily because of the tax climate.
Entrepreneurs may take this as a cue that this is a prime moment for starting a small business and seeking foreign investors.
In addition to improved odds at finding startup capital, new enterprises might benefit from increased consumer spending currently sweeping the nation; a report from Nielsen's Global Consumer Confidence Index shows Canadian consumers are gaining confidence in the markets.
