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Canadian Small Businesses Outlook Improving

Survey results from the Canadian Federation of Independent Business showed some improving outlooks among small business owners polled:

  • 38% considered the condition of their business to be “good”, 18% “bad”, and 44% “satisfactory
  • 18% of businesses were planning to add staff
  • 16% of businesses were planning to reduce staff
  • Top five business cost concerns: tax, regulatory costs; fuel, energy costs, wage costs; bank account and processing fees; and insurance costs.
  • Top three business constraints: insufficient domestic demand; shortage of working capital; and shortage of skilled labor
  • Business Barometer index rose to 60.4% (well below historical norms, but up since last survey)

Broadband Infrastructure Projects for Economic Development

A recent report from OECD advocates government policy makers deploy stimulus funds and investment into broadband infrastructure -

Broadband infrastructure, in particular, can be a good target for economic stimulus spending because  many projects can be initiated relatively quickly, are labour-intensive, can minimise economic leakages, and may promise stronger marginal impacts on supply and productivity than investing in established networks such as electricity, gas, water and transportation.

The full report is available here and in interesting to read.   A wealth of related data on broadband deployments current as of December 2008 (including pricing, policies, penetration, etc) is available from OECD in detailed excel spreadsheets here.

My sense is that Canada’s economy would certainly benefit more from advancing communications infrastructure projects than it would by having another government building or public works project.

Lead to Win May-June Sessions

The 2009 Lead to Win program kicked-off this week.  The program was originally planned to support 30 participants per session.  Due to overwhelming demand from highly qualified candidates the program capacity was doubled and 61 participants were accepted into the May-June program.

The first three days of workshops went exceptionally well.  All participants were highly qualified, highly motivated and highly committed.  The workshop was intense and there was a lot of interaction between the participants and the program leaders.  A breakdown of the participants company types, target markets, etc. is available: Lead to Win May 2009 Portfolio Snapshot

Photos from the first day of the program are available online -

Lead to Win (May 19, 2009)

Lead to Win Videos

Message from Dr Tony Bailetti for Prospective Lead to Win Participants

Testimonial from Jerry Everett, President of onconference

Want more information?

Visit the Lead to Win website at http://www.leadtowin.ca.

The program is free to qualified participants (no small print, no strings attached!).

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Lead to Win Program Update – April 25th

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CTV Ottawa News Coverage This Sunday!

Tune-in to CTV Ottawa TECH NOW with Paul Brent on April 26th at 6PM for a special report on Lead to Win!

City of Ottawa, Carleton University and Business – United in Leadership for the Community

Recent press releases on the Lead to Win program:

Media Coverage

Visit the Lead to Win website to see all the latest media coverage on the Lead to Win program.

Free Re-use of Lead to Win Materials for Other Canadian Communities

All Lead to Win program materials (e.g. online tools, learning materials, processes, network) will be made freely available to other communities who would like to re-use, or adapt,  the materials, procedures and network for their own regional benefit. Contact us at lead@leadtowin.ca if you are interested.

Spread the Word!

Please spread the word on the Lead to Win program to prospective candidates, community organizations and sponsors.

Can you Help?

If you know politicians or government leaders in agencies who want to join the City of Ottawa, the Chamber of Commerce and Carleton University in taking a strong, visible leadership position to help make a difference – please make them aware of Lead to Win and ask them to contact Dr Bailetti at 613 829 8885, bailetti@sce.carleton.ca

Ottawa Tech Jobs Melting Away

The Ottawa-Gatineau unemployment rate took a sharp jump recently and currently sits at 5.2%.

Under the surface, the situation for tech jobs is increasingly serious.

In Ottawa-Gatineau technology jobs have been evaporating at an alarming rate -  in just the last 12 months,  the region has lost 8,800 tech jobs.  This represents greater then a 14% loss. Further, Ottawa-Gatineau has lost almost 30% of its regional tech jobs compared to 2000.   Ottawa-Gatineau tech jobs peaked at 74,000 in 2000 and are now down to 53, 800 as of March 2009.

Stats Canada has published that during the 2002 bubble burst – 4 out of 5 laid off tech workers did not find work in high tech, and 2 of 5 left the City of Ottawa.

The tech sector is continuing to shed jobs in Ottawa-Gatineau.

Ottawa-Gatineau faces a significant loss of tech capability and associated economic impact/growth for the region.

Lead to Win is focused on launching new technology businesses in Ottawa-Gatineau to retain and create new tech jobs.   If you are concerned about the state of the technology sector in Ottawa-Gatineau or are interested in launching a new tech business in the region, you are encouraged to visit www.leadtowin.ca.

More Beef, Less Bun!

We are in the midst of the worst economic downturn Ottawa has seen, and we are watching our high tech sector melt away.

I find it very disturbing that there are few organizations – other than the Talent First Network and NRC-IRAP – that are stepping up and taking visible, urgent and concrete steps to help out our community.

Talent First Network is aggressively pushing ahead with the Lead to Win program, which has garnered strong community support.

The IRAP team have ramped up their pace, they have streamlined processes to match the urgency of the situation, they are pursuing new programs, and they are on the frontline – engaging the entrepreneurs and high tech businesses who are working to expand existing businesses or build new businesses which will revitalize our high tech sector.

The big question is – Where is the leadership from the other tax-funded organizations? The City of Ottawa, the Ontario Ministry of Research and Innovation and Industry Canada have spent truckloads of money on the Ontario Centres of Excellence, Ottawa Centre for Research and Innovation and The Ottawa Partnership (TOP) – these organizations  should be front and center but are virtually invisible.

When it comes to getting results from our tax dollars and leadership from the organizations they fund – it’s time for “More Beef and Less Bun!“  -

In the current economic downturn,  I would rather see more of my tax dollars going to IRAP and the Talent First Network.  They have the right attitude and they are focused on helping our community.

It’s time for MORE BEEF!  LESS BUN!

Forget Monorails! The New Snake Oil for Economic Development is Green Tech and Clean Energy!

Green tech and clean energy is the new snake oil – and is increasingly being pushed in Ottawa and other communities as “the future of technology” and the source for attracting venture capital,  private investment and driving  massive economic growth…  However the facts paint a different picture!

Venturesource reports steady declines in Venture investment in the green tech and clean energy sectors, with $189 million of Venture Capital invested in 15 deals during the first quarter, down 59 percent from the $457 million invested in 24 such deals last year.    This is in comparison to ICT investments, which even in the worst of times are still almost 10 times greater for the same period!

Clean Energy, Green Tech – it walks, talks and looks like a Monorail -

Lead-to-Win Turns Economic Downturn into Opportunity for Laid-Off Technology Workers in Canada’s Capital Region

April 16, 2009 – Press Release

Ottawa, Ontario

Lead-to-Win Turns Economic Downturn into Opportunity for Laid-Off Technology Workers in Canada’s Capital Region

In the tech meltdown of 2002, four out of five laid-off tech workers did not find work in high tech, and in Ottawa-Gatineau two out of five laid-off tech workers left the region.   In 2009, Canada’s Capital Region high tech sector faces a significantly greater challenge.

Today, Ontario’s Talent First Network is pleased to announce the launch of the Lead To Win  program for laid-off tech workers.  The program is based upon a program of the same name that was delivered during the last economic downturn in 2002. Over half of the participants in the 2002 Lead to Win program created a new business in Canada’s Capital Region.  These new businesses collectively created over 300 jobs and attracted over $90M in investment.

“Lead to Win is a great initiative for our region and we are pleased to support the program,” stated Larry O’Brien, Mayor of the City of Ottawa.  There is a proven recipe here. This is precisely the sort of innovative action that takes the current economic situation and turns it into a compelling opportunity for growth.”

Professor Tony Bailetti of Carleton University stated “We have a real opportunity to drive massive innovation in Canada’s Capital Region. Lead to Win will equip the next wave of technology entrepreneurs to launch new businesses that target the right market spaces. We did this in 2002 and we are going to do it again.”

David Vicary, founder of Weyeseyes and previously President and founder of Nakina Systems was also a 2002 Lead to Win participant. Vicary statedThe Lead to Win program was developed to help entrepreneurs in tough times. The lessons learned in Lead to Win were critical to my success in founding and growing Nakina Systems.”

The program is intended for talented individuals who want to launch a new technology business.  The program is free to qualified applicants.  Applications are currently being solicited for the program.  Space is limited and interested individuals are encouraged to apply online at www.leadtowin.ca.

Lead to Win is sponsored by the City of Ottawa, Talent First Network and Carleton University.  Lead to Win associates include alumni from the 2002 Lead To Win program, local businesses, and faculty members and graduate students of Carleton University’s Technology Innovation Management program (http://www.carleton.ca/tim).

About the Talent First Network

The Talent First Network is a successful Ontario-wide initiative funded by the Ontario Ministry of Research and Innovation and Carleton University.  The Talent First Network enables the commercialization of market offers that rely on open source projects and global ecosystems for their revenue.

Contact: Tony Bailetti, Bailetti@sce.carleton.ca, 613 829 8885

Canadian Unemployment Rate Hits 8% in March

Stats Canada has reported that Canada’s unemployment rate hit 8% in March.  This is the highest rate in seven years.

march2009unemp

In March, Ontario unemployment remained steady at 8.7%, however Ottawa’s unemployment rate rose sharply and is now 5.2%.

More details on Canada’s forecast unemployment rates and trends for 2009 is in this blog.

Comparison of Canada’s unemployment rates with the great depression is in this blog.

MagCloud – Do It Yourself Magazine Publishing …a Cool Idea with Loads of Microbusiness Potential

HP is currently running a beta of a new online service called “MagCloud“.  The service allows anyone to produce a magazine and print it – on demand – for $0.20 a page.  The service also offers an online store to allow publishers to sell their magazines.  The service will take care of printing, mailing, subscription management, and more.

HP’s longer-term plan is to sell their specialized printers and inks to businesses who will offer regional on-demand printing services.

This ability to do on-demand printing of magazines can allow smaller operations and professional service organizations to offer new services to businesses which need to quickly and cheaply produce magazines.  One of the benefits offered by the service is the ability to do tweaks to the magazine master document much more quickly and with less cost then traditional methods of producing magazines.

13% Increase in Individuals Using Ottawa Emergency Shelters in 2008

The Ottawa Alliance to End Homelessness released it’s report for 2008.  The report showed a 13% increase in 2008 compared to 2007, of the number of individuals and families using local Ottawa emergency shelters for increasingly longer periods.

2008homeless

Best Buy Reports Sales UP 10%

Best Buy reported that revenue for their recent quarter which ended Feb. 28 was $14.72 billion, up 9.7 percent from $13.42 billion from the same the period a year earlier.  The increase came from strong sales of laptop computers and cellphones.

Carleton University Poster Session – Innovation, Talent, Commercialization

I attended the Carleton University engineering poster session on Mar 20th.  89 engineering students  displayed the results of 36 4th year projects (http://www.sce.carleton.ca/courses/sysc-4907/webforms/posterLocations.php).

The projects ranged from the abstract to the commercially viable, and from simple to complex.  The one thing that stood out in general was the high quality of the students.   The projects I found  most interesting were the ones which struck me as being commercially viable with further development – examples from the poster session included:

  • An application which linked exercise equipment (in this case a treadmill) into a virtual reality world where the treadmill user could “run” through the virtual reality world and potentially interact with other users around the world
  • An inexpensive and compact wireless sensors technology that automatically create a wireless mesh communication network to allow easy deployment of sensors (e.g., smoke detector) without the cost of dedicated wires (or even electrical outlet)
  • An iPhone-based geo-tagged photo blogging application
  • A Nintendo Wii technology-based interactive projection “whiteboard’

Poster sessions like this can be a great way to help advance commercialization of university work and link local investors/entrepreneurs to ideas and talent.

McGuinty Government Announces $250M Fund

McGuinty’s government announced a new fund today oriented towards helping keep Ontario start-ups moving forward in the face of a non-existant venture capital market.  The fund will match private investments dollar for dollar.   It is said to be based upon a similar model implemented in Scotland.

This is a great step towards supporting innovation and start-ups.

Canadian Manufacturers and Exporters See Increasing Challenges in 2009

The Canadian Manufacturers and Exporters (CME) Association released a report in late February, that summarized survey results from Canadian manufacturers and exporters on their perceptions of business conditions.  

Key trends from the survey include:

  • A majority of manufacturers and exporters expect the value of new orders to fall over the next three months – 56 per cent say that orders are likely to decrease between February and May. This is a less optimistic outlook than in January when only 43 per cent of companies were expecting new orders to drop in the coming three months.
  • 45 per cent of companies say that employment levels are likely to fall. This is slightly higher than the 42 per cent of companies that expected their employment levels to fall in the January survey.
  • The credit crunch is affecting smaller companies the most, but larger companies are now reporting difficulty accessing financing. 60 per cent of manufacturers and exporters report difficulties accessing adequate levels of financing including obtaining working capital, extending lines of credit, accessing financing for new technologies and product development.

Cities in Ontario at Over 10% Unemployment

An increasing number of cities in Ontario are significantly above the national average of 7.7% unemployment, including:

  • Windor 12.6%
  • London 8.4%
  • Kitchener 9.1%
  • Hamilton 8.4%
  • St-Catherines-Niagara 9.5%
  • Hamilton 8.4%
  • Toronto 8.3%
  • Oshawa 8.2%

Ottawa is at 4.6%, but this low number may be misleading due to the outflow of laid-off workers from the city.  During past tech layoffs Stats Canada reported that, 2 out of 5 laid off tech workers left Ottawa — with the declining prospects for tech workers in Ottawa, this rate of departures will likely have increased in the current downturn.

Jeffrey Dale Has Left the Building

Jeffrey Dale stepped down as OCRI CEO last week.   

Over the years, I used the OCRI services for the launch and ramp of both Liquid Computing and Purple Forge.  Liquid Computing and myself were both honored to receive OCRI Awards and recognition.   Moreover, I have benefited from Jeffrey’s personal help and support.

As a result of my belief in the good work that OCRI was doing for our community and my positive personal experiences with the OCRI team and Jeffrey, I joined the OCRI board of directors two years ago.   

With Jeffrey’s departure, I spent some time this weekend reflecting on what I will remember the most about OCRI under Jeffrey’s leadership.   There are a long list of things I will remember, but the three things that will stand out the most in my memory about Jeffrey are that  - 

  • Jeffrey was a very active and very visible cheerleader for Ottawa and the tech community.  He was also an articulate spokesman –  he put a face on the local tech community and was a visible advocate of its interests;  
  • Jeffrey worked tirelessly on behalf of the community in general – the job was definitely not a 9 to 5 type of job;
  • Jeffrey established a team at OCRI that was very much focused on the entreprenuer – in my direct experience – the OCRI team is responsive, knowledgeable and sincerely interested in making a difference, and that reflects on its leadership.

Thanks Jeffrey!

Trigence Becomes AppZero

Local start-up Trigence has quietly changed it’s name to AppZero as well as quietly ejecting the last founder from the team.   Trigence had a great product but has not appeared to make any significant sales or progress since CEO Chuck Colford departed.  Unfortunately Trigence/AppZero’s new direction does not appear very compelling in an already crowded virtualization market that is dominated by VMWare, XEN and soon Microsoft.

The main industry news on Trigence appears to be on the ongoing churn in senior leadership.

Trigence’s new logo and name are both very close to NetZero (I did a double-take myself since NetZero is a well-known brand), so it won’t be surprising if they end up having to change their name -

netzeroappzero1

Canada is Potential Leader in Global Technology Revolution

A recent Rand report , “The Global Technology Revolution 2020″, looks at 16 upcoming key technologies and the ability of 29 countries to acquire and to implement.  The following chart identified the key technology applications -

screenshot_63

Only three of the 29 countries examined by Rand were identified as being able to acquire and implement all 16 key technology applications  – the United States and Canada in North America and Germany in Western Europe.

screenshot_62

Ontario Commercialization Network to be Reformed?

The Ontario Commercialization Network Steering Committee Report was delivered to the Minister late February.  PWC produced a report on OCN prior to the Steering Committee Report but it was not made public.

ocnmap

The report makes some blunt assessments of serious problems with  Ontario’s current approach to economic development and commercialization.  Some key findings include:

  • Lack of co-ordination and sharing across many fragmented organizations
  • Lack of overall governance
  • Lack of clear entry-point for clients/entrepreneurs
  • Lack of metrics and performance targets
  • Need for better co-ordination between Provincial and Federal governments
  • Economic conditions demand quick action

Key recommendations include specifics related to:

  • Fixing the governance model
  • Fixing the delivery model
  • Reducing overlaps of products and services within the Province and between the Province and Federal programs

The report was one of the best i’ve seen so far – it cuts directly to the issues and provides some very rational recommendations.

High Tech Worker Study Shows Optimistic Disposition Helps Reduce Stress Levels

In 2002, Carleton University ran a survey to look at stress among tech workers – “Coping with Job Uncertainty : A Survey of Employed and Unemployed High Technology Workers”.   The report identified numerous interesting results, however the one that I found particularly noteworthy was the fact they found that people who have an optimistic predisposition have a natural buffer against stress.    In fact, the more optimistic one’s nature, the less stress they reported.

The full report is available here.

Foreign VC Investment in Canada Down More Than 50% in 2008

Industry Canada reports that foreign VC investment in Canada is down 53% in 3Q08 compared to 3Q07.

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The bulk of investment is going towards ICT and Life Sciences deals.

sectoractivity

Ontario, Quebec and BC account for the majority of deals, with only Quebec showing growth in number of deals. where

The good news is that BDC investments of tax payer money continue to get good leverage -

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Chrysler to Canada – Hand Over the Cash or I Shoot 9,000 Kittens!

According to the Globe and Mail, Chrysler has resorted to extortion in order to extract tax payer money to prop up their failing company.  According to the article:

At a parliamentary committee hearing last night, Chrysler president Thomas LaSorda said the company would commit to maintaining roughly a quarter of its North American production in Canada if its “needs” are met.

Chrysler then went on to list three demands/conditions of Chrysler continuing operations in Canada: union concessions, tax payer money, and an agreement that Canada will back off on its tax collection efforts to recover $1B in taxes it currently owes the Canadian people.

Canada’s Industry Minister Tony Clement has responded today saying that -

(Chrysler officials) “can say whatever they want. … Taxpayers expect us to apply the same rules to everybody in Canada and we’re not going to change the rules for Chrysler”

US, Canada and European Governments Actively Preparing for Widescale Civil Unrest?

This blog entry noted european think tank forecasts of civil unrest in the US as a consequence of the economic crisis.

It was reported back in September 2008 that -

U.S. troops returning from duty in Iraq will be carrying out homeland patrols in America from October 1st in complete violation of Posse Comitatus for the purposes of helping with “civil unrest and crowd control” – which could include dealing with unruly Americans after a complete economic collapse.

In February 2009, news reports have highlighted that the US Army is purchasing a significant ($6M) amount of riot gear.

Another article published in February highlighted increased urban warfare training drills by the US Army in cities around the US.

Other news reports have highlighted past “behind the scenes” preparation by the US government relative to even a modest level of anticipated civil unrest, such as the advance preparation of massive prisoner holding pens which were put in place for expected mass arrests during the Denver Democratic National Convention in 2008.

Denver

Denver

Recently, a bill entitled the National Emergency Centers Establishment Act (HR 645) was introduced in the US Congress in January. It calls for the establishment of six national emergency centers in major regions in the US to be located on existing military installations.  The stated purpose of  the “national emergency centers” is to provide “temporary housing, medical, and humanitarian assistance to individuals and families dislocated due to an emergency or major disaster.”   Some pundits say that this bill is in reality establishing domestic internment camps since HR 645 explicitly states that the camps can be used to “meet other appropriate needs, as determined by the Secretary of Homeland Security.”

In Canada, the RCMP is actively recruiting for 2,000 new officers.

Also interesting is that in 2008, the Canadian and US Government signed an agreement to use each other’s troops in civil emergencies.

UK newspapers have reported that European leaders fear civil unrest over the worsening economy, and that:

Europe’s top politicians are so rattled by the prospect of growing protests that they have arranged an emergency leaders’ summit in March to deal with growing tensions.

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