Entrepreneurship is a welcome addition to the present Canadian political landscape. Politicians of every hue in Canada claims to assist entrepreneurs. Considerable confusion exists, however, when it comes to fostering public policies which help entrepreneurship. Many a reform is thought to provide a fillip to innovation by some while being regarded as an underminer of small businesses by others. The latest example of such dual thinking is the tax reform of small businesses brought about by Bill Morneau. Politicians frequently take advantage of such confusion to propose a number of interventionist programs created to encourage entrepreneurship.
Canadian policymakers could clear up such confusion and make a coherent ground policy by looking closely at the research being done by the Austrian School of Economics. The term ‘Austrian economics’ comes from its roots from the scholars of the Austria’s University of Vienna. It is presently an approach to the economic research done with a number of economic practitioners all over the world. Thinking is regarded as an economic phenomenon. Multiple human interactions are thought of in the terms of the entrepreneurial process. A valuable insight into entrepreneurship can be had by being alert to the many opportunities which come along the way.
It is observed that a majority of the market economy’s positive aspects are due to entrepreneurial actions. Entrepreneurial activity results in a wide gamut of effects, from innovation and growth to resource allocation and fruitful trade. Entrepreneurs are the surest example of buying at low prices and selling the products high. They also innovate to outcompete the other entrepreneurs. Better policies encourage such processes. Entrepreneurial activity gets oriented towards solving the problems which need to have a solution. Products are obtained in new methods and also services. These policies strengthen the fundamental principles which allow the prices and property to exist. Information, innovation, and incentives are brought to the fore. These permit entrepreneurial activity to happen in the Canadian economy.
The introduction of bad policies, in converse, will distract the entrepreneurs from the productive businesses. Other varieties of opportunities become much more appealing. These policies can take the shape of excessive capital gains along with personal and corporate income taxes. It could also take a toll on the labor and occupational licensing regulations. Many industries could be saddled with heavy regulatory burdens. Limits could be imposed on international and provincial trade. Another ill effect will be the imposition of quota system of the supply management for eggs, poultry, and dairy among others.