A federal briefing note says more than a quarter of Atlantic businesses that get federal subsidies fail within five years.
“The business survival rate for Agency-assisted startups is 73 percent,” said the federal briefing note “Atlantic Canada Opportunities Agency” (ACOA).
However, it goes on to say the survival rate for businesses that did not get taxpayers’ help is a lot lower, at 33 percent, “for unassisted firms after the crucial fifth year following startup.”
The note adds that in 2021–2022, the agency disbursed $364 million in grants and subsidies, while its long-term average is about $276 million per year.
Subsidies averaged just over $230,000 in grants and loans per successful applicant, said the November 2022 note. “On average each year the Agency assisted 971 businesses.”…