Question

Does Canada need a bank owned by the government (Business Development Bank of Canada) to support small businesses and entrepreneurs, or would the existing private-sector banks be enough? Would the Big 5 banks lend money to these businesses if the BDC did not exist? (Long answer required)

Answer 1

Canada indeed need a government owned bank to support the small business and entrepreneurs.The role of Business Development Bank Of Canada(BDC) is very pivotal as it is the only Canadian banks devoted to the entrepreneurs.It provides both online and offline services.Canadian banks not only lend money to these small entrepreneurs they also provide advisory services.The main objective of BDC is to support the entrepreneurs in all stages of their growth.BDC was founded in 1944 .Though BDC provides all kind of services the main focus is on technology and exporting industries.Apart from the other private banks which provide loans such as Big 5 banks ,BDC provides an additional help to the companies at their primary stage or at their seed stage by providing venture capital.BDC describes themselves as the only Canadian bank devoted fully to small and medium sized entrepreneurs.

Royal bank,Canadian imperial bank of commerce ,TD Canada Trust ,Bank of Montreal ,Bank Of Nova Scotial are the Big 5 banks in Canada.Eventhough this big 5 banks do support the small business ,these banks are not exclusively for supporting the small or medium sized businesses.Among the Big 5 banks Royal bank is the one which supports the small and medium sized businesses more.RBC has its 20 percent of share supporting the small business as per the survey in 2015.
Thus BDC wholly recognizes the needs of the small business in Canada and it is very important.