Question Period Note: 2024–25 DEPARTMENTAL PLAN (SMALL BUSINESS)

In fiscal year 2024–25, what are the plans and priorities of Innovation, Science and Economic Development Canada (ISED) to ensure economic growth and prosperity for Canada’s small and medium-sized enterprises (SMEs)?

• The Government of Canada will continue to support small and medium-sized enterprises (SMEs) in all regions and sectors to promote a dynamic, inclusive, and globally competitive economy that creates jobs, opportunities, and a better quality of life for all Canadians.

• In 2024-2025, Innovation, Science and Economic Development Canada (ISED) will continue to support the digital transformation and modernization of SMEs.

• ISED will continue to provide support - financial and non-financial - to Canadian small businesses and entrepreneurs, especially businesses owned by women, black and 2SLGBTQI+ entrepreneurs.

The 2024-25 Departmental Plan was tabled on February 29, 2024.

The Departmental Plan outlines Innovation, Science and Economic Development Canada’s (ISED) annual spending plan and describes priorities, planned results and associated resource requirements for a three-year period. It also provides details on human resource requirements.

In combination with the Main Estimates, Departmental Plans serve to inform members of Parliament about planned expenditures of departments and agencies, and support Parliament’s consideration of supply bills. Ministers of departments are accountable for their Departmental Plans and must respond to questions on content and format.

The 2024-25 Departmental Plan is structured according to ISED’s Departmental Results Framework (DRF) and its three core responsibilities:
• Companies, Investment and Growth
• Peoples, Skills and Communities
• Science, Technology, Research and Commercialization

• Innovation, Science and Economic Development Canada’s (ISED) 2024–25 Departmental Plan outlines a number of key initiatives that the Department will undertake to support SMEs, including:
o the Canada Digital Adoption Program;
o the Futurpreneur Program;
o the Women Entrepreneurship Strategy (WES);
o the 2SLGBTQI+ Entrepreneurship Program; and
o the Black Entrepreneurship Program.

• In particular, ISED will:
o continue to provide eligible businesses with micro-grants of up to $2,400 for costs associated with the adoption of digital technologies, and with assistance and e-commerce advisory services, through CDAP’s Grow Your Business Online component;
o eliminate barriers for the 2SLGBTQI+ community to access Canada’s entrepreneurship ecosystem by delivering critical business advice, creating resources, providing mentorship, and collecting data needed to better understand the needs of 2SLGBTQI+ entrepreneurs and the challenges they face;
o through the WES Ecosystem Fund, continue to strengthen capacity within the entrepreneurship ecosystem to serve at least 12,000 women entrepreneurs across Canada annually, including diverse women entrepreneurs and those in rural and remote areas; and
o through the Black Entrepreneurship Ecosystem Fund, continue to support 43 not-for-profit organizations across the country in providing training, mentorship, networking and financial literacy services to Black entrepreneurs and business owners.

As part of the Refocusing Government Spending initiative, the government committed to the following spending reduction targets for ISED:
• 2024-25: $ 141.2 million
• 2025-26: $ 158.7 million
• 2026-27 and after: $ 313.7 million
 
• To achieve this objective, ISED will be implementing three savings initiatives:

o Operational Efficiency Savings
The department plans to generate savings of $24.3 million in 2024-25, increasing to $38.8 million by 2026-27 and after by reorganizing work to generate operational and administrative efficiencies and through attrition. Implementation of these savings is not anticipated to impact the delivery of programs and services.
o Temporary Savings from Transfer Payment Programs (TPPs)
To refocus government spending, the department will contribute $81.7 million from two temporary transfer payment programs. First, the department will fund the 2024-25 CANARIE program estimated at $38 million by leveraging available funding from the Digital Research Infrastructure Strategy, rather than accessing new funding. In addition, the department will reduce funding for the Canada Digital Adoption Program by $43.7 million in 2024-25.
o Permanent Savings from TPPs
Beginning in 2025-26, ISED will return an amount of $11.4 million per year from the Canada Foundation for Innovation program to the fiscal framework and will reduce the overall funding envelope for the Strategic Innovation Fund by $38.2 million in 2025-26, increasing to $141.4 million in 2026-27 and subsequent years.
• In addition, the department is also committed to supporting government savings through the following efforts:

o Increased Revenue
The department intends to contribute an additional $7 million in 2024-25 and 2025-26, and $52.1 million in 2026-27 and after to the fiscal framework through new or increased user fees for services providing benefits to specific enterprises, organizations or individuals.
o Rescaling of the Innovative Solutions Canada (ISC) Program:
The department will implement the government’s commitment to reduce spending on the ISC program by $28.2 million in 2024-25 and $70 million in 2025-26 and after. These savings will be achieved through reduced contributions to the programs from participating departments across the government. Allocation of the savings by department will be determined in the spring of 2024 and reflected through the government’s supplementary estimates process.