SME Financing Data Initiative

Current Data Sources

To date, there are a wide range of data available from both public and private sources. However, because there is no single conceptual basis for these efforts, weaknesses exist in the current data sources which limit their effectiveness. The manner in which information is currently collected raises three main conceptual framework issues for this initiative:

Comparability issue:

The various data currently available are collected with different methodologies, making comparison for analytical purposes problematic. A substantive analysis of SME access to financing requires consistent measures of business size and sector of activity. The current financing information does not provide this consistency, making the integration of existing data for analytical purposes problematic. One of the initiative's goals is to standardize the collection and reporting structure to maximize the usefulness of the information for all stakeholders.

Depth and scope issue:

Although the information currently collected deals with the topics of interest, it does not delve into issues deeply enough, nor is its coverage broad enough. For example, data collection on the supply-side of SME debt financing is mostly limited to banks, which, according to Thompson Lightstone, leaves out approximately fifty percent of SME financing in Canada. As well as improving upon the coverage of the current data by including all significant providers of financing, this initiative will provide additional information related to financing instruments, size of business, rural vs. urban businesses, etc.

Benefit of a third party:

Many stakeholders believe that the federal government can play a vital role as an objective third party collecting and analyzing data in the public interest.