IN NOVA SCOTIA, the land of the small business, in many cases entrepreneurs creating or retaining fewer than 50 employees were cut out of a government funding arrangement, which Nova Scotia Business Inc. uses to successfully entice companies to move to this province.

The way it works is that the province agrees to rebate payroll taxes for a certain period in exchange for the qualified company creating a specified number of jobs or retaining jobs it has already created.

Since only 15 per cent of Nova Scotia companies have 20 employees or more, according the Canadian Federation of Independent Business, only a small portion of the Nova Scotia private-sector economy would likely qualify for the payroll rebate.

Recently, the province changed the terms on the rebate program, allowing companies to retain or create as few as 20 jobs to qualify for the rebate. That was reduced from the 50-job minimum.

And now specially designated companies considered to be of "high strategic value" or of "strong economic benefit" will be able to tap into the funding while creating or retaining fewer than 20 jobs.

According to NSBI, the province’s business development agency, it will offer the payroll rebate if it is to be used as an additional investment for companies that are committed to using their own funds for at least 20 per cent of specific project expenses.

Just as before, eligible companies would earn the rebate increasingly as they reach specified measurements of performance and payroll targets.

On the surface, extending the rebate program to include more small business appears like a good thing for provincial government to do. And most of the business people I talked to on Thursday believe that it is a good idea.

But one of the preliminary concerns is that small companies may still decide not to apply for a payroll tax rebate if it proves to be too complicated to make it worthwhile...

http://www.thechronicleherald.ca/Business/1044881.html