Anshu Verma 300934399

Cristian Cajueiro 300924570

Dedglis Duarte 300867865
Sai Ram 300932100

Group Assignment
Innovat. Entrepre. Econ. Devel (SEC. 001)
Prof. Rathika Sitsabaiesan

Wednesday, March 29th, 2017.

Identify and provide a brief analysis of three (3) items in the 2017 federal budget that will either
help to stimulate or will hinder entrepreneurship, innovation and/or economic development for
the Canadian people and/or in the Canadian economy.

1-. Tax Fairness for the middle class.

The first strategy from the government is taking some action to bring more accuracy for the tax
system is fair for all Canadians. The Government plan is to control the measures that
disproportionately favor the rich people class, eliminating the tax evasion improving tax
fairness for Canadian families and bring real chance at success.
The government identified that some people that choose not pay their taxes, forcing another
part of population to pay more to supply resources for essential services and programs such as
housing, child benefits, heath care and others government programs. The government plan is
cracking down on tax cheats and to invest around $520 Million over five years to avoid tax
evasion and improve tax compliance.
The Government also compromised to review some tax expenditures. The objective is
identifying opportunities to decrease tax benefits that help unfairly wealthiest Canadians than
other part of population.
Through this, Canada work hard to bring more financial stability and security, strengthens the
middle class increasing the confidence business and grow the economy for the long term.

2-. Venture capital: a private equity finance helping young Canadian innovators.
Venture capital is basically a private equity financing which gives young and ambitious
companies an opportunity to take their new innovations and ideas in the market. Venture
capital does not only fund capital investments to the firms but their managers bring vast
technical knowledge, operational experience, connect them to various networks and mentor or
guide the firms in various stages of the activity. The funding and the extensive support the
venture capital provides to Canadian start-up companies plays a very prominent role in the
success of these companies.
To enhance the growth of these young Canadian companies, the Canadian Government
proposes in the 2017 budget to make funds available through the Business development bank
of Canada. This is a new Venture Capital Catalyst initiative which will make a $ 400 billion in
cash basis for a period of three years and its will be starting in 20017-18. This will basically
increase the last stage venture capital available to venture capitals. The last stage venture
capital typically supports young companies which have sales and revenue to grow more rapidly
and take the company to the next level. Depending on various proposals received and funds
been pumped by private sector the Canadian innovation capital market could receive about
$1.5 billion funds.
The approach to apply for these funds is simple and straight forward. First the private firm will
send a proposal to the government for requisition of funds or support. Later based on various
considerations like equal amount of risk taken between the government and private firm,
expected benefits to the Canadian firms and the Canadian economy and the investment
strategies the Minister Innovation science and economic development will take a decision on
the application and the further course of action.

3-. Skills, Innovation and Middle Class Jobs

To be one of the most innovative and competitive countries in the world, Canada aims at
building a workforce that have proper skill and knowledge. Budget 2017 addresses this test
and involves new tasks and initiatives which aim at making Canada a true nation of Innovation.
By creation of skilled workforce, entrepreneurship in Canada will stimulate at a faster pace as
new skills and new knowledge will bring new opportunities in Canada and government of
Canada is committed to create opportunities for all Canadians.
Federal Budget 2017 aims at investing to alter communities create middle class jobs, which
further generate clean, sustained growth. By creating more jobs for middle class people in
Canada, especially in high-growth sectors of the economy like digital industries, agriculture
food etc. will trigger Canada’s entrepreneurship.
As far as federal budget 2017 Canada is concerned, creation of new industries and jobs for
middle class people, will fuel and strengthen Canadian people to innovate and upgrade their
credentials throughout their career. Canadian economy hopes are high that federal
government will make fresh venture capital commitments.
Federal budget includes criteria by identifying innovation clusters, investing in high – growth
companies and how much will go to each one over at what period of time. By criteria, Canada
GDP rate will grow and federal budget proves to be a positive sign in development of Canada
economy.
 References
Government of Canada (2017, March 22). Budget 2017 Building a strong middle class.
Retrieved March 26, 2017, from http://www.budget.gc.ca/2017/docs/plan/toc-tdm-
en.html

Government of Canada (2017, March 22). Tax Fairness. Retrieved March 26, 2017, from
http://www.budget.gc.ca/2017/docs/bb/brief-bref-en.html#section3

Morneau, W. (2017, March 22). Building a strong middle class #Budget2017. Retrieved
March 26, 2017, from http://www.budget.gc.ca/2017/docs/plan/budget-2017-en.pdf