Photograph by: Allen McInnis , The Gazette
Came across this great piece the other day, about a new fund that is helping entrepreneurs in Quebec. The fund was set up by Caisse de dépôt et placement du Québec pension fund and an arm of the Desjardins Group.
On Thursday, the two partners announced that after pumping close to $190 million into 186 companies across Quebec over the last 3 years, they decided to launch a second fund.
Known as Fonds Capital Croissance PME II, the new fund will have capital of $230 million contributed in equal shares by the two financial institutions. The idea is to offer entrepreneurs with what is being termed as “patient capital” without the worry that their loan could be called tomorrow. The program has helped companies maintain their presence in local and regional economies where they often have a disproportionate impact.
Entrepreneurship has been lagging in recent years as Quebec is not generating business startups at the same rate as other provinces. Coupled with the fact that the small business tax rate in Quebec is eight per cent, when the average in the rest of Canada is around three per cent, the program is being viewed is a step in the right direction for business owners in the province to gain access to much needed capital that can support long term growth.