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 Doing Business 2009
(Source:  National Dialogue on Entrepreneurship - Week of September 22 - 28, 2008)

For the past five years, the World Bank has been publishing its influential Doing Business series that tracks how national governments perform on a host of measures related to regulatory burdens placed on small businesses. The latest Doing Business report was released last week, and, as usual, it contains interesting data and analysis. Singapore remains the world's most business-friendly country, followed by (in rank order): New Zealand, United States, Hong Kong, and Denmark. 

This research series has clearly helped change how governments regulate business.  Spurred on by this outside pressure, state regulators have implemented a number of recommended reforms such as simplifying the business start-up process and making it easer to pay taxes. The new rules have had an impact.  To give one example, reforms in Mexico have helped increase the number of registered businesses (up 6%), increased employment (up 2.6%) and helped reduce prices (down 1%) thanks to competition from new entrants in the marketplace.

Rankings on the ease of doing business

RANK

2009 / 2008

1 / 1 Singapore

2 / 2 New Zealand

3 / 3 United States

4 / 4 Hong Kong, China

5 / 5 Denmark

6 / 6 United Kingdom

7 / 7 Ireland

8 / 8 Canada

9 / 10 Australia

10 / 9 Norway

(Source: http://www.doingbusiness.org/documents/DB09_Overview.pdf)

Message from the Chief Electoral Officer of Canada

Subject: Outside Canada? You can vote by mail!

Did you know that a federal election is being held on Tuesday, October 14, 2008 and that if you meet certain conditions, you can vote when you are temporarily living or travelling outside Canada?

If you are a Canadian citizen, you can vote by special mail-in ballot if you:
• are 18 or older on election day, and
• have a permanent residence in Canada, but are away from your electoral district during the election period, or
• have resided outside Canada for less than five consecutive years (or longer if you meet certain employment-based criteria).

For more information on eligibility criteria and how to register and vote by special mail-in ballot, go to the Elections Canada Web site at http://www.elections.ca/ and (click the icon « I'm Mailing My Vote ! » ).  Special ballot application forms are also available by contacting Elections Canada at 1-800-463-6868 (toll-free in Canada and the United States) or 613-993-2975 (from anywhere in the world – collect calls accepted) or by visiting the nearest Canadian mission.

Register early! Your completed application form and supporting documentation must be received at Elections Canada in Ottawa by 6:00 p.m., Ottawa time, on Tuesday, October 7, 2008. You are responsible for allowing enough time for us to send you a special ballot voting kit and for you to return it before the deadline of 6:00 p.m., Ottawa time, on election day, on Tuesday, October 14, 2008. According to the Canada Elections Act, your vote cannot be counted if it is received late.

Consul General's speech to the Greater Fort Lauderdale Chamber of Commerce

Ms. Marcy Grossman, Consul General
Consulate General of Canada in Miami

Address to the Greater Fort Lauderdale Chamber of Commerce
Board of Directors & Trustees

Wednesday, May 21, 2008
(click here for the full text of the speech)

VentureWire Alert - Friday, May 02, 2008
Copyright 2008 Dow Jones & Company, Inc.

Canadian venture capital financing saw a sharp drop in the first quarter, with health-care investment plummeting and dragging down the overall numbers to their lowest level in nearly two years.

Investors allocated $123.4 million to Canadian companies in the first three months of 2008, compared to $200.2 million in the previous quarter and $184.5 million in the first quarter of 2007, according to data from VentureSource, a research unit of VentureWire publisher Dow Jones & Co. It represented the lowest financing total since the $112.2 million logged in the third quarter of 2006.

Sixteen financing rounds took place in the first quarter, down from 22 in the fourth quarter of 2007 and 24 in the year-ago quarter.

While information technology investing rose slightly, to $94.9 million from $92.5 million in the previous quarter, health care experienced its worst three months also since the third quarter of 2006. Only $8.4 million was invested in two health-care deals - both in the biopharmaceutical segment - down from $88.6 million and six deals in the previous quarter and $85.5 million and eight deals in the year-ago quarter.

The Canadian health-care numbers echoed a marked U.S. decline reported last week by VentureWire, also based on VentureSource data. Venture firms invested $1.7 billion in 142 U.S. health-care companies in the first quarter of 2008, down from $3 billion sunk into 175 companies in the first quarter of 2007.

Overall, the Canadian decline in both number of deals and amount invested was seen in all round classes except seed rounds, which saw a small uptick. First-round investment fell to $25.4 million from $53.8 million in the fourth quarter, second-round financing declined to $50.9 million from $74.1 million, and later-stage financings dropped to $41.6 million from $72.3 million.

 2008 Index of Economic Freedom
 (Source: The National Dialogue on Entrepreneurship Week of January 28 - February 3, 2008)

Earlier this month, the Heritage Foundation and the Wall Street Journal released the latest edition of their annual global index of economic freedom. The Index assesses how 162 countries perform on ten different measures of economic freedom. These measures track areas such freedom from corruption, the ability of entrepreneurs to start new firms, open trade regimes, strong property rights, and equitable tax rates. The Index finds that nations with high levels of economic freedom also have higher levels of prosperity (measured in GDP per capita) and higher growth rates. However, very few countries can be classified as "free" economies. In fact, only seven countries are included in this category. The vast majority of nations operate with "moderately free" or "mostly unfree" economies. The top performers in the 2008 Index are (in rank order): Hong Kong, Singapore, Ireland, Australia, the US, New Zealand, and Canada.

M&Eh? Torrid Canadian Dealmaking Pace Continues
(Source: M&A Alerts are published weekly by The M&A Advisor - November 16, 2007)

Canadian third-quarter M&A activity totaled C$91 billion (U.S. $92.8 billion) lagging the second quarter's record-setting C$166 billion (U.S. $169.3 billion) but still enough to qualify as second highest on record, according to Crosbie & Co. Inc. Year to date announced transactions exceed C$319 billion ($325.4 billion), eclipsing previous record high of C$257 billion ($262.14 billion). "While the credit crunch has virtually shut down the market for highly leveraged buyout transactions for now, the core M&A market driven by strategic buyers continues to be very strong," stated Ian Macdonell, managing director of Crosbie & Co. "Positive factors that continue to drive M&A activity include globalization, demographics, strong corporate balance sheets as well as a reasonably positive economic outlook."

 2007 Globalization Index
( 2007 A.T. Kearney/Foreign Policy Globalization Index)

Every country, and every society, is challenged by the forces of globalization. Yet, some places - like Singapore and Hong Kong - seem to be doing a pretty good job of responding to these tectonic global changes. Singapore and Hong Kong rank at the top of the 2007 Globalization Index, jointly produced by A.T. Kearney and Foreign Policy magazine. This year's index tracks 2005 data in categories such as economic integration, technological connectivity, personal contact, and political engagement. Many of the top ranking countries are small. Other top performers include the Netherlands, Denmark, Switzerland and Ireland. The US (#7) and Canada (#8) are the only large countries that regularly appear in the top rankings.

(Source: National Dialogue on Entrepreneurship, Week of November 5 - 11, 2007)

From the Consulate General of Canada: March-April 2007 Canada in Miami Newsletter

Canada in Florida
#1 overall economic partner
#1 source of international tourism
#1 source of foreign direct investment
$6.8 billion in total two-way trade
$559 million in Florida revenue from agricultural exports to Canada
$2 billion spent by Canadian tourists
2 million Canadian tourist visits
Canadian snowbirds represent Florida's most valuable and loyal tourism market
289,000 Florida jobs supported by the Canada-Florida relationship

Source: Statistics Canada, May 2006

Best:
1. Denmark
2.Canada
3. Singapore
4. United States
5. Finland

Worst:
78. Libya
79. Kenya
80. Cuba
81. Iran
82. Angola

Source: Economist IntelligenceUnit of London, 2002-2006 study
February 11, 2007 - South Florida Sun-Sentinel

Canada / U.S. Connections
(Source: Consulate General of Canada in Miami 10/31/06)

The Government of Canada is proud of its long and distinguished relationship with the United States, with both countries sharing a unique and unparallel partnership bound by history, geography and shared values.  Canadians and Americans alike have stood side by side as part of a long tradition of cooperation in defending our continent and serving as joint stewards of our environment; culminating in a thriving partnership which is also the world's largest bilateral trading relationship.

Yet despite the multitude of positive connections that weave through the fabric of our relationship, many significant contributions that make up a part of our daily exchanges are often forgotten. Among the most prominent are:

• 1.3 billion in trade crosses the Canada-US border every day, making U.S. and Canada each other's largest trading partners.
• The trade market in Canada for U.S. goods is larger than all 25 members of the European Union combined.
• U.S. trade with the province of Ontario alone is bigger than with all of Japan.
• 5 ½ million US jobs depend on Canadian imports from the US, with 289,000 direct/indirect jobs supported by the relationship with Florida alone.
• Canada is the U.S.'s largest and most reliable source of energy, including oil.
• Canada is Florida's number one overall economic partner, source of foreign direct investment and international tourism.
• Countless degrees of cultural exchanges take place daily between our two countries, further connecting our two people.

Here are the top countries, ranked by the value of their property in Broward County:
(Source: Sun-Sentinel 10/01/06)

	Number	Property value	Taxes *
Canada	7,838	$ 1,338,791,010	$30,536,925
Germany	139	$ 34,774,350	$ 793,097
Britain	111	$ 29,810,260	$ 676,826
Venezuela	112	$ 28,462,880	$ 640,365
Colombia	84	$ 23,418,670	$ 531,211

*Taxes based on TRIM notices sent in August.

SOURCE: South Florida Sun-Sentinel analysis of tax and property data from the Broward County Property Appraiser's Office, identifying "snowbirds'' as those who own homes or condos here but have their tax notices sent out of state, and who do not claim homestead exemptions here. The analysis does not include any snowbirds who have their tax notices mailed to a Broward County address.

Embassy, September 6th, 2006
By Brian Adeba

Stewart Beck is the new Assistant Deputy Minister for Investment, Innovation and Sectors. He was formerly the Director General, Assignments and Executive Management, and started his new job yesterday.

Canada's 9/11 Response
(click here)

Guide to International Business Costs
(Source: National Dialogue on Entrepreneurship, NDE-news - Week of April 3 - 9, 2006)

If you're looking for a low-cost location for a new business, you might want to think about Singapore. That nation ranks number one in terms of low business costs in the latest edition of KPMG's Competitive Alternatives survey of the cost of doing business in various global locations. Singapore far outstrips the competition, with costs that are on average 22.3% cheaper than in the US. The KPMG research analyzes business costs in a wide range of key industries, including aerospace, biotechnology, telecommunications, electronics and precision manufacturing. Among G7 countries, Canada fares best (with 5.5% cost advantage over the US) and its cities rank as top North American cities in terms of low business costs. Within the US, the top three low-cost sites are Dothan, AL, Greenville-Spartanburg, SC, and Lexington, KY.  Most major European economies also have a cost advantage compared to the US, with France and the Netherlands enjoying slightly lower costs than their European compatriots. Not surprisingly, Japan and Germany rank as the highest cost locations. ( KPMGs' 2006 Competitive Alternatives survey)

The ease of doing business index ranks economies from 1 to 155.  The index is calculated as the ranking on the simple average of country percentile rankings on each of the 10 topics covered in Doing Business in 2006. The ranking on each topic is the simple average of the percentile rankings on its component indicators.
(Source: 2006 Edition of the Cost of Doing Business Report from the World Bank)

Economy	Ease of Doing Business	Starting a Business	Dealing with Licenses	Hiring and Firing	Registering Property	Getting Credit	Protecting Investors	Paying Taxes	Trading Across Borders	Enforcing Contracts	Closing a Business
New Zealand	1	4	2	4	1	7	1	16	15	4	21
Singapore	2	5	7	7	14	8	2	9	6	11	2
United States	3	3	17	6	12	15	7	30	17	10	17
Canada	4	1	21	24	27	10	3	12	13	34	4
Norway	5	19	11	46	7	39	16	40	7	1	3
Australia	6	2	12	14	34	3	26	14	22	12	15
Hong Kong, China	7	6	77	3	70	2	4	2	26	16	14
Denmark	8	15	6	17	31	22	18	61	1	2	25
United Kingdom	9	9	29	15	23	1	9	81	21	30	10
Japan	10	81	5	20	36	18	14	50	12	3	1

Canadian Biotech: Everything But Money
By Michael Galicia, Associate Editor, KPMG Insiders
March 18, 2005 -  Weekly Alert

As global pharmaceutical firms fill their dwindling drug pipelines, Canadian biotech companies, with low costs and strong research, have become an inviting target for acquisition or partnerships.  That is, if those Canadian biotech firms can get the venture capital needed to survive.  According to a 2004 KPMG business study, "The CEO's Guide to World Business Costs," Canadian biotech competitiveness measures up well against biotech in other nations in terms of costs and talent. The study ranked Canada lowest for costs of doing business of 11 nations surveyed.  Canada also boasts a large number of biotech companies, which have excellent reputations in several areas, including genomics, proteomics, bio-informatics, protein engineering, immunotherapy, and drug delivery systems.  In addition, the Canadian government gives R&D tax incentives. Biotech firms get immediate full write-off for expenditures in R&D capital equipment and appreciable tax credits. That equals 18.7 cents of tax relief for every Canadian dollar of R&D expenditure.  But despite the cost advantages and scientific expertise, Canadian biotech companies still struggle to generate sufficient venture capital to thrive.

"There is great, inexpensive science here, but there are still problems with gaining critical mass," said Nancy Harrison, senior vice president with Vancouver-based Ventures West Capital Ltd., at the recent BioPartnering conference in Vancouver, British Columbia.  The Canadian biotech market is ripe for an influx of capital. G. Steven Burrill, CEO of Burrill & Co., a life sciences merchant bank, said that an estimated $82 billion of drugs will come off patent protection by 2007, opening up great opportunities for venture capitalists. "[In 2004] we saw venture investment in the biotech sector hit $3.7 billion, compared with $2.8 billion in 2003 and $2.7 billion in 2002," Burrill said. "We're going to see more venture capital investment in 2005 with VCs having more money than ever to invest."  In the fourth quarter of 2004 alone, American venture capital firms invested $768 million in 32 U.S. and two Canadian biotech companies.  According to Macdonald & Associates Ltd., a Toronto-based venture capital data provider, there were 150 Canadian venture capital deals in the first half of 2004, with an aggregate value of U.S. $505 million.

Still, Canadian biotech companies are still finding it hard to raise capital, and when they do obtain financing, they typically get far fewer dollars than their American counterparts. This makes it harder for Canadian companies to advance their technology and get products to market.  The money problem also has a negative impact in perceptions. Already, venture capitalists are often reluctant to invest in companies outside their borders due to long travel times, different tax regulations, and a wealth of opportunities in their own backyards.  "Distance is so critical to venture capital," said Chad Waite, general partner, OVP Venture Partners, a Seattle-based early-stage investment firm that has about 30 percent of its $500 million in assets invested in life sciences.  "There is an old adage about the best VC [being] only a short drive away," Waite said. 

The nature of biotech also discourages American venture capitalists from investing abroad. The high failure rate among various technologies and drugs and the long investment horizon -- typically five to seven years, compared with three to five for early-stage investments outside of life sciences -- means investors are reluctant to throw their money northward.

It even has discouraged home-grown venture capital, which lacks the size to adequately fund the nation's startups, from investing at home.  "Canadian venture capital companies get a 'B' grade from me," said Ventures West's Harrison. "We have some good groups but not enough funds to really compete with U.S. companies."  According to Harrison, venture capitalists are demanding Canadian biotech companies show liquidity before future rounds of financing, while doing fewer deals with more money per deal. They are avoiding most "concept" deals.  Harrison notes that some American investors see issues with Canadian companies: poor liquidity in Canadian public markets, lack of seasoned management, and fledgling ventures that are not adequately capitalized.  "An inexperienced management team is always learning on the VC's dollars -- [it's] just too scary given all the other risks," said Harrison.  She emphasized the importance of getting the best people in place at the biotech target.  "Get an experienced team -- if [it's] Canadian, mix it up with U.S. people as well," Harrison said. "Get good board members, and find a local lead person who is known by U.S. players. As far as distance issues, think about a U.S.-based office for business or clinical development."

Bruce Colwill, CFO of Neuromed Technologies, agrees that Canadian companies are not on a level playing field with their American counterparts. "Make sure that the lawyers involved know about cross-border issues, the same goes for the tax advisors," he says. "It could be the difference between a good deal and a great deal."

OVP's Waite stressed the importance of financing in increments. "To make money in the venture capital market, you have to invest early. But the earlier you invest the more risk you take on, that's why we strongly believe in wave financing."

National Dialogue on Entrepreneurship, Monday, September 22, 2003

Global Entrepreneurship Monitor (GEM) Edition

Some of the recent data on the entrepreneurial economy have been somewhat positive. The decline in venture capital (VC) investment appears to be slowed, and anecdotal reports indicate lots of interesting start-up activity in a host of sectors. The GEM 2002 Report also includes some cause for optimism.  Thirty- seven percent of surveyed Americans were optimistic about the climate for starting a business.  That figure remains largely unchanged from 2001.  A more important figure concerns the number of Americans currently engaged in creating or growing a business - 10.5 percent.  This is a decline from 2000 levels, but it still ranks the US at the top when compared to other G7 nations.

Canada ranks 2nd with 8.8 percent of Canadians involved in entrepreneurial activity. Meanwhile, Japan ranks at the bottom of the G7 group with only 1.8 percent of Japanese involved in such activities.   This strong interest in entrepreneurship may be one of the American economy's "secret weapons."  While many sectors stagnate, future innovations and great companies are being built in America's labs, boardrooms, dorm rooms and bedrooms.

GOVERNOR BUSH PRAISES FLORIDA'S NEWFOUND STATUS
AS NATION'S TOP INTERNATIONAL VISITOR DESTINATION

 TALLAHASSEE (Thursday, April 3, 2003) - Governor Jeb Bush announced yesterday that Florida has moved into the top position of  all states in the number of international travelers visiting the United States.  The statistics, released  yesterday by the U.S. Department of Commerce, are from 2001, the latest year data is available.  "I am very proud of this new ranking as it exemplifies Florida's grand reputation in international visitor circles," said Governor Jeb Bush. "Even though overall international travel to the U.S. declined in 2001,  Florida was able to maintain and, in fact, increase its market share of international visitors. That increase is  a testament to the confidence visitors have in Florida, and the effectiveness of the Sunshine State in  marketing its boundless and wonderful assets."

 In the Commerce Department report, Florida had a 24 percent share of overseas visitors to the United  States during the year. New York was second at 23 percent, California third at 22 percent, and the Hawaiian  Islands had 10 percent.  Florida also was by far the top U.S. destination for Canadian visitors in 2001,  garnering a 34.7 percent market share of those visitors, as compared to 7.4 percent for second place California, 5.9 percent for third place New York and 4.8 percent for fourth place Arizona, as cited in an earlier report from the Conference Board of Canada.

 In 2000, Florida ranked second behind California while New York was third.   The 2001 Florida visitor estimates for the top-twelve countries were as follows:

Rank                 Nation                        Number of Visitors to Florida
in 2001

• # 1                     Canada                              1.887 million
• # 2                     United Kingdom                 1.516 million
• # 3                     Venezuela                            393,000
• # 4                     Germany                              303,000
• # 5                     Argentina                             227,000
• # 6                     Brazil                                   218,000
• # 7                     France                                 139,000
• # 8                     Italy                                     117,000
• # 9                     Japan                                   110,000
• # 10                   Netherlands                           98,000
• # 11                   Spain                                     77,000

Competitive Alternatives is a comprehensive guide for comparing business costs in North America, Europe, and Japan. This KPMG report measures the combined impact of  27 cost components that are most likely to vary by location, as applied to specific business operations.

The 10-month research program covered more than 85 cities throughout Austria, France, Italy, Germany, the Netherlands, the United Kingdom, Canada, the United States, and Japan.  More than 1,000 individual business scenarios were examined, analyzing more than 30,000 items of data.  The basis for comparison is the after-tax cost of startup and operation for 12 specific types of business, over a 10-year time horizon.

Canada is the overall cost leader for 2002 with a cost index of 85.5, representing a 14.5 percent cost advantage over the United States (US = 100.0).

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