Cape Breton Reaps Benefits Of Opportunities For Prosperity

ECONOMIC DEVELOPMENT--Cape Breton Reaps Benefits Of Opportunities For Prosperity

In 1999, the government of Nova Scotia did something radical: It recognized that ad hoc, piecemeal efforts to grow the economy weren't working. It recognized that a strategic, co-ordinated and focused economic growth strategy was needed -- a strategy that would involve other levels of government, business and the community.

In October 2000, Opportunities for Prosperity -- Nova Scotia's growth strategy -- was born. Today, that strategy has positively affected every region of the province.

The numbers tell the story.

The first chapter of that story begins with the number of businesses in existence. In 1993, according to Statistics Canada's business register, there were 28,922 businesses in Nova Scotia. By 2003, there were 52,085 business in the province.

If the Cape Breton area is singled out, the numbers continue to be positive. In 1993, according to the register, there were 5,144 businesses on Cape Breton Island. By 2003, that number had grown to 6,783.

This growth can be attributed to the ingenuity of our workforce, and the fact that the government of Nova Scotia has provided a number of tools to help small business, and rural Nova Scotia, grow.

The Small Business Loan Guarantee Program is one example. Since the program began in June of 2003, more than $3.4 million has been put into the hands of 42 businesses which have employed 211 Nova Scotians. This $8-million program is in place because small business was clear that access to capital was a problem. The province agreed and put a solution in the hands of the credit union system -- and in the hands of Nova Scotia's communities themselves.

Community Economic Development Investment Funds, or CEDIFs, are also helping improve the economy across the province. The province recognized that more than $600 million is invested by Nova Scotians in RRSPs, with less than one per cent finding its way back into Nova Scotia's economy as reinvestments. It created the Community Economic Development Investment Fund program to encourage more people to make investments at home, making the 23 funds currently operating a made-in-Nova-Scotia plan to local investment. The program allows communities to put ideas, and people, to work. To date, $10 million has been invested in these funds, most of which has been reinvested in businesses within their communities. The funds are active throughout the province -- particularly in Cape Breton.

Since the number of businesses is on the rise, it makes sense that employment numbers are up as well. In 1993, there were 352,100 Nova Scotians working. In 1999, there were 388,000. By 2004, there were 421,500. More importantly, the participation rate -- or the number of people entering the workforce -- grew from 58.2 per cent in 1993 to 61.7 per cent in 2004.

The latest seasonally adjusted figures from Statistics Canada continue to indicate an upward trend. More than 449,200 Nova Scotians were working in the month of May, an increase of 3,700 people over the previous month.

In Cape Breton, 42,900 people were employed in 1993. By 1999 that number had grown to 49,100. And, in 2004, there are 51,200 people employed.

The participation rates have grown in this area as well, from 47.9 per cent in 1993 to 50.8 per cent in 2004. The unemployment rate has fallen from 28.7 per cent in 1993 to 15.9 per cent in 2004.

There is more work to do. Regional unemployment rates are still unacceptably high, but steady progress is being made, thanks, in large part, to initiatives like the Cape Breton Growth Fund. This $98-million fund has invested more than $47 million in 27 projects and provided more than 2,900 jobs for Cape Bretoners.

The fund is a partnership between the federal and provincial governments -- because the joint approach makes sense. If Nova Scotia is to effectively continue to grow its economy, it will take partnerships, co-operation and fresh approaches.

About $36 million of the fund remains for investment. Individuals interested in more information can contact Rick Beaton at the Cape Breton Growth Fund (902-564-3618). Information is also available from Eileen Lannon Oldford of the Cape Breton County Regional Development Authority (1-800-818-2201) or Blaine Gillis of the Strait Highlands Regional Development Agency (1-800-546- 3390).

Input and ideas are also welcome at Nova Scotia Business Inc. (NSBI), an organization borne out of Opportunities for Prosperity and mandated to take a client-focused, private-sector approach to growing the provincial economy. It does so by developing the province's exports, attracting investment from companies outside Nova Scotia and providing tools for companies to help them realize growth opportunities.

Since it was created in November 2001, NSBI has met with 750 businesses across the province. Its business attraction and financing clients aim to create or maintain at least 7,200 jobs.
Last year alone, the organization helped 230 companies increase export sales or find new markets. Companies interested in growth opportunities through NSBI can contact Lisa Dobson in Port Hawkesbury (902-625-4205)or Lisa MacDougall in Sydney (902-563- 5769).