entrenomics

Canada’s Missing Fifth: Franchising – Entering a New Era

In Business on July 25, 2011 at 10:04 am

By Martin Greenspon

The spirit of Canada is best known in Europe for one of its
qualities…energy.

This has always been true. Canadians have been known for their
conservative powers of articulation while others saw it in loftier terms. But
energy has always been this country’s saving feature.

So Canadians should be especially alert to signs that the country is becoming less vital and industrious. One of these signs comes from the labour market. In 1954 about ninety five percent of Canadian men between the ages of 25 and 54 worked. Today that number is around eighty percent. One fifth of all men in their prime working ages are not getting up and going to work.

Part of the problem has to do with human capital. More Canadian men lack the emotional and professional skills they need to contribute for a more robust economy. Thirty five percent of those without a high school diploma are out of the labour
force, compared with less than ten percent of those with a college degree.

Much of the problem has to do with structural changes in the economy. Sectors like government, health care and leisure have been growing, generating jobs for college graduates. Meanwhile, manufacturing, agriculture and energy are becoming more productive, but they have not been generating more jobs. Instead, companies are using machines or foreign workers.

The result is this, there are probably more idle men now than at any time since the Great Depression, and this time the problem is mostly structural, not cyclical.

This is a big problem. It cannot be addressed through short-term stimulation some on the left are still fantasizing about. It cannot be solved by simply reducing the size of government, as some on the right imagine.

It will probably require a broad menu of policies attacking the problem all at once.

Below are a few suggestions:

1.      Expand community colleges and online learning

2.      Change the corporate tax code and labour market rules to stimulate investments

3.      Implement wage subsidies and programs that extend government benefits to the unemployed for six months

If programs are sponsored by franchise corporations and entrepreneurs,
a positive solution to gainful employment can develop. It is only small
businesses are capable of delivering these results in the months and years to
come.

One of North America’s most prestigious universities, the first in North America, has developed through the “Centre of Innovation”, a successful “Franchise Ownership Program” to educate entrepreneurial students focused on becoming owners of small franchise businesses, by obtaining the seed capital and training they require.

This most innovative program will certainly revolutionize the 100 year old franchise industry forever.

Something significant is required to reinvigorate “Canada’s Missing Fifth”. This can be handled more effectively by private enterprise services which are abundantly available.

Winston Churchill, one of the greatest statesmen of the 20th century was quoted as saying, “on the entire surface of the globe, there is no more vast and splendid domain, open to the activity and genius of free men than Canada”

One wonders how Winston Churchill would rate Canada today in light of the “Missing Fifth”.

To learn more about M-Four International – www.mfourintl.com

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