DI S PATC H E S | TRADE the B7’s discussions on international trade. Multilateral and plurilateral initiatives to reduce tariffs and non-tariff barriers, and to enhance transparency, facilitate the global spread of modern, affordable and efficient technology. This, in turn, will enable environmentally sustainable economies. Scaling up small business was designated a theme for the B7 this year given that small- and medium-sized enterprises (SMEs) account for 50 per cent of GDP and 56 per cent of employment in G7 countries. Consequently, the international economy benefits enormously when governments provide tools that not only support, but also scale up SMEs to grow into larger globally competitive enterprises. Chief among the measures G7 governments can undertake to support SMEs is ensuring a proportionate tax and regulatory burden that does not stifle growth and innovation. These are goals we advocate for on behalf of all businesses, but the challenges faced by SMEs are acute given the realities of their capacity limitations. Governments can also support the growth of SMEs on a number of other fronts. This includes encouraging them to adopt digital technologies, improving
their ability to access international business opportunities and ensuring procurement contracts are accessible. Lastly, promoting the growth of SMEs owned by women is an opportunity for economic expansion. In Canada, women own 17 per cent of firms with fewer than five employees, but just seven per cent of those with more than 100. G7 governments should support these businesses and their potential economic contribution. The key challenge for women is access to funding. While funding sources may be available, women are turned down more often than men when seeking capital for their businesses. G7 countries should ensure that women have the ability to create, grow and scale their businesses. Bold and aspirational leadership in government and business has always been critically important during times of great uncertainty. My organization, and our sister business federations in the B7, eagerly await the outcome of the Canadian presidency of the G7 and stand ready to work with government to deliver increased global prosperity. Perrin Beatty is president and CEO of the Canadian Chamber of Commerce.
CHATHAM HOUSE
Lastly, data flows across borders present a notable opportunity to increase business efficiency. Yet, as recent events with technology companies show, we need strong measures to protect the privacy of personal information against business needs, such as prohibiting forced data localizations. Resource efficiency was selected as a priority for the B7 this year, given the importance of using natural resources in a manner that protects the environment and is sustainable. Since the founding of the G7 Resource Efficiency Alliance in 2015, resource efficiency has become a fixture at G7 gatherings — and a priority for the B7 — because of the crucial role business plays as a driver of innovation and global value chains. Public and private research, development and innovation strategies are essential for resource efficiency. G7 countries have done an excellent job of working through global programs, but governments need to continually work to create environments that encourage private sector investment. This will help mobilize capital and more effectively leverage public-sector funds. Resource efficiency closely connects to
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SUMMER 2018 | JUL-AUG-SEPT