Canadian trade finance agency, Export Development Canada (EDC), said Thursday that only 4% of Canada's economic engine is tapping into the significant potential of overseas trade.
The agency, which provides Canadian exporters with financing, insurance and bonding services via a network of brokers, as well as foreign market expertise, just announced US$1.5m in financing for British Columbia-based company Vanrx Pharmasystems.
But Mairead Lavery, senior vice-president, business development, at EDC said that while SMEs make up 98% of Canada's businesses and account for 60% of all Canadian jobs, of the more than one million SMEs in Canada, only 41,000 are exporting. This means that only 4% of Canada's economic engine is tapping into billions of potential customers beyond Canada's borders, suggesting a huge, untapped market for SME insurance products.
"It can be hard for a small business to get initial financing to expand its manufacturing footprint," said Lavery. "EDC's goal is to make exporting as easy as possible, because small companies have more time to spend on productive areas of their business when they are not worried about financing. If you are part of a small- or medium-sized business and would like to take advantage of the opportunities that exist outside of our borders, EDC is here to help.”
