British Columbian entrepreneurs spent the economic downturn investing in new technology more than counterparts in the rest of Canada.
Business Development Bank of Canada (BDC) survey results show that 71% of entrepreneurs in the four westernmost provinces invested in technology in the past two years. In Ontario, that figure was 65% whereas in Quebec the figure was 60%.
“In Atlantic Canada, the figure was 74%. So, they were a bit higher than we are but there were far fewer entrepreneurs there,” said Shirley Bennie, BDC’s vice-president of financing and consulting in Vancouver.
She told Business in Vancouver October 22 that she believes B.C. entrepreneurs might have even been more keen to invest in their enterprises than in the rest of the west. The survey did not break out those figures.
The introduction of the harmonized sales tax (HST) in July may encourage entrepreneurs to be more willing to invest in equipment.
Before the HST was introduced, entrepreneurs had to pay both the 5% goods and services tax (GST) and 7% provincial sales tax (PST) on equipment purchases. They would then get a rebate for the 5% GST. They now receive a rebate for the full 12% HST.