Village Squire, 1976-02, Page 8ers. No less than 60 per cent of these
manufacturing enterprises are sub -contract-
ors to major world scale companies, and they
compete vigorously. These films are not
threatened by bigness but rather make big
manufacturers more efficient.
In Japan, the shift to a slower growth
economy revolves around support to the
market sector. Far from feeling threatened by
the shift of standardized manufacturing to
lower wage countries, Japan focuses on the
training of small and medium business
management, provides incentives to refin-
ance plant and equipment and uses all means
to develop knowledge -intensive and differ-
entiated products.
Central to this proinotion of the market
sector is the emphasis laid on providing
preferential financing and credit. A small
business finance corporation supplies small
and medium business with funds at low
interest, or interest-free, for the acquisition of
plant and equipment as well as for operating
over the long terrn. The People's Finance
Corp. extends small loans to entrepreneurs
who would otherwise experience difficulty in
obtaining credit. These corporations, which
are government agencies, together with the
partly private Shoko Chukin Bank specializing
in financing co-operatives of small business-
es, supplement the private banking system.
Their operations are augmented by 52
publicly financed credit guarantee organiza-
tions which act as guarantors to overcome the
credit -raising difficulties of small firms.
Backing the guarantors is a publicly financed
Small Business Credit Insurance Corp.
These facilities are themselves reinforced
by the formation of co-operatives, now 50,000
in number, through which small firn1s acquire
the same advantages as Targe ones in
purchasing, domestic marketing and export
sales. A visit to a co-operative of 25 small
metal fabricating and machine manufacturers
in Osaka showed a central office facility for
purchasing steel, power and other common
needs together with common cafeteria
facilities all financed by low-interest,
long-term loans from the Shoko Chukin Bank.
Contrast these initiatives with Canada's
recent loan of $35 -million to Pakistan to buy
Canadian raw materials. The terms were no
payment for 10 years and the balance over 30
years at 3 per cent. Contrast these terms with
the current 12 to 13% per cent rates charged
to Canadian proprietors by Canada's Federal
Business Development Bank.
Moreover, Canada is faced with the
paradox of insurance - induced unemploy-
ment, especially among the young (37 per
cent of U.I.C. beneficiaries are under 25),
combined with the severe difficulty experi-
enced by proprietors in finding and keeping
reliable workers.
Yet the market!, sector is potentially the
most prolific creat6r of jobs, at a cost per job
as low as $3,000, certainly no higher than
$10,000, whereas creating one job in the
capital intensive corporate sector costs
anywhere from $25,000 to $100,000.
In short, Canada has a choice: to
perpetuate mandatory government control of
the planning sector (which includes and
interlocks with government); or to embark on
a gradual erosion of the 'planning sector,
especially of government, by encouraging the
market sector to expand and develop.
The same dynamic marketplace which
PETER S.
MacEWAN
Realtor
38 St. David St.,
Goderich
524-9531
District Representatives
Lueh Kuehl. Clinton
482-7304 Office
482-7306 Res.
Joanne Bullen, Bayfield
565-2421
Stan Kay, Blyth
523-4464
BERRIHS
ANNUAL
The Square WINTER SALE
GODERICH, ONT. CONTINUES
Lots of winter left, Stock up on our
Clear -Out Values during our store -wide sale.
YOUR IN -TOWN
SHOPPING CENTRE
LADIES & GIRLS
• Coats
• Car Coats
• Dresses
• Sweaters
• Slims
etc.
20%
to 50% OFF
MEN'S & BOYS'
• Coats
• Suits
• Pants
• Sweaters
• Shirts
etc.
6, VILLAGE SQUIRE/FEBRUARY 1976