Over the next ten years, Quebec could witness a very significant wave of business closures due to the retirement or retirement of the business of a majority of business owners.
This pressure on our economy, coupled with a decrease in the proportion of Quebecers who want to start a business, could lead to significant job and sales losses.
This is what was observed in Japan, which had to deal with a 21% reduction in its number of SMEs in just fifteen years (between 1999 and 2014). In Quebec, such a scenario would represent the closure of more than 50,000 SMEs with at least one employee. The consequences of such a wave of business closures would be devastating for the province's economy. It is therefore crucial that Quebec entrepreneurs and existing businesses be prepared to take over these businesses and create new ones.
It should also be noted that competition and operating costs in certain sectors of economic activity require companies to reach a larger size and a higher turnover in order to remain competitive and have access to public tenders. For all these reasons, the implementation of programs and public policies that support the emergence of a new generation of entrepreneurs and that facilitate the takeover of businesses, especially as a scale-up strategy for existing businesses, is essential.
Investing resources in measures supporting collective recovery and collective entrepreneurship is in the common interest, especially in the context of an aging population, the growth of social inequalities and the acceleration of the effects of climate change.
Indeed, aiming to increase the proportion of Quebec businesses that belong to the social economy (around 6% currently) is a winning strategy since social economy businesses are on average much more resilient than private companies: 85% of social economy enterprises have been operating for more than 10 years, compared to only 43% for private companies. This sustainability of EES is explained in part by the fact that they stick to the needs of the community and in turn can rely on the continued support of the community they serve, which has a stake in achieving their social mission.
By supporting the emergence and development of collective enterprises, we can therefore stabilize markets, ensure better alignment between the needs of the population and the goods and services offered, and reduce the risk of our Quebec businesses relocating or taking over by interests outside Quebec. Finally, let's not forget that in addition to their territorial roots and stability, social economy enterprises often make it possible to compensate for shortcomings in the traditional market and to meet needs otherwise neglected by private companies.