America is frequently called the ‘land of opportunity’ but it is Canada that is increasing its business reach in tough economic times.
We compare the two great North American nations and debate which offers the friendliest climate for entrepreneurs who are buying, running or selling a business.
Wayne Assaf, an Ontario-based entrepreneur who has recently sold a datacom business through BusinessesForSale.com, uses an eccentric analogy to describe the relationship between Canada and its neighbor.
He says: “Canada for many, many years was the mouse sleeping in a single bed with an elephant. Now, over the last 10 years the Canadian mouse now has its own bedroom. Canada is in wonderful shape.”
By comparing these nations on three important business criteria, we find out if this is true…
Finance and Economy
Winner: Canada
Why Canada wins: Canada not only beats the US in financial terms but is outperforming Europe and Asia Pacific too. And Canada, the second-largest country in the world, was recently deemed the cheapest country for buying land and constructing industrial facilities. A significant exporter of energy, the country also provides some of the cheapest electricity worldwide.
Back in the 1990s Canada was prompted by a credit-rating downgrade into the kind of austerity program the US and Europe are now imposing. By the time the 2008 financial storm hit, Canada had slashed government debt in half, leaving GDP, at 20%, the lowest in the developed world.
Why America trails: The US, by contrast, is battling a ballooning deficit in much tougher circumstances, with Congress paralysed by ideological differences and tax receipts falling. With the banking scandals and collapses of recent years, the Obama administration has found itself in murky financial waters, whereas Canada’s economy looks remarkably rosy.
Although the US is seen as the fourth best country in the world to sell a business and trade in, business buyers are much more likely to be offered credit in Canada (according to the Doing Business world economy rankings system).
Industry and Agriculture
Winner: A tie
Why a tie: In theory, the US should be the hands-down winner in agriculture. It has four times as much arable land and nearly 10 times as many people as its neighbor. But Canada has over a quarter more woodland than the US, and this is a lucrative commodity.
Canada is also excelling in the automotive sector. Manufacturers have been attracted to the country because of its highly educated population, low labour costs in comparison to the US, and even it’s publicly funded healthcare system, which exempts companies from paying health insurance costs. Central Canada now produces more vehicles than Michigan, the neighboring state and traditional heartland of the US automotive industry....
