(L-R) DR. M. GORDON HU NTER AND DAN KAZAKOFF
According to the provincial government, small businesses make up about 96 per cent of all businesses in Alberta. While they may be small, they certainly are mighty. In fact, small businesses in the province contribute nearly 30 per cent of Alberta’s gross domestic product (GDP) – a figure that puts them first in the country for small business GDP per capita in 2009. But it’s not just small enterprises in Alberta that are economic powerlifters. Across Canada, small businesses are doing their bit by employing half of the total workforce. The hard reality, however, is that 75 per cent of Canadian small businesses fold within nine years. Why does that happen, and what factors contribute to the long-term success of some small businesses? These questions and others like them are being explored at the University of Lethbridge’s newly established Small Business Institute (SBI) in the Faculty of Management. Founded earlier this year, the SBI links small businesses to the expertise of researchers, professionals and other business people. Simply put, the SBI serves as a hub for research on small businesses and a resource for those who own, work at and are interested in them. The Institute investigates many issues related to businesses, including succession, sustainability and franchising. The SBI also works with rural areas throughout southern Alberta, where small businesses are often the lifeblood of the community.
“The SBI is an excellent example of U of L professors and researchers working to ensure that their work is relevant and valued in the community, and that leading business practices can be adopted by small businesses in the region,” says David Hill, director of Centres and Institutes at the U of L. The SBI was established by researchers Dr. M. Gordon Hunter and Dan Kazakoff. Both professors in the Faculty of Management, they worked together initially to co-author the book Little Empires: Multi-Generational Small Business in Southern Alberta, Canada. Published in 2008, Little Empires profiled 11 local, family-run operations.
“It allowed me to see how other businesses operate and what allowed them to prosper.” PAUL MCDONALD
“We wanted to help small businesses learn from each other,” says Kazakoff, noting that the SBI was a logical evolution of the work invested in Little Empires. “With the Institute, we wanted to raise the profile of small businesses and interact with the community. It was our way of giving back.” The strategy works well, says Paul McDonald (BMgt ’88), one of the entrepreneurs
I L L US T R AT I O N BY DAL E N I G E L G OB L E
By Dana Yates
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