How Ottawa can level a tilted field for small businesses
Yelena Larkin and Ray Bawania at York University. The pandemic’s record-low interest rates fueled even more deal-making.in many ways. There is the direct competition for consumers . There is concentration among a small business’s suppliers . And there is concentration among a small business’s buyers .its members recently and found more than half felt their competitors were bigger than they used to be. About 60 per cent felt they had less power to set prices or terms.
Another reform would be to modernize the Competition Bureau’s notification system. Currently, if a deal is worth $93-million, or the combined Canadian assets of the companies are worth more than $400-million, the parties must notify the bureau before the deal closes. It could also monitor market share, as other countries do. The klaxon could sound when one company accounts for more than 30 per cent of a market, for example, as in the United States and Britain.
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