This document provides a summary of the 2011-12 annual report from SmartBusiness, which is an initiative of the Greater Halifax Partnership that connects local businesses to resources to help them grow. Some key details include: - SmartBusiness consulted with 251 businesses in 2011-12 and helped create nearly 2,000 jobs. The top reasons for consultation were expanding business operations, accessing Partnership resources, and workforce development. - Most businesses surveyed rated Halifax's current business climate as good or excellent and expressed confidence that it would continue improving. However, concerns about workforce availability and quality were commonly cited issues. - Businesses gave high marks to the city's post-secondary institutions and transportation infrastructure but were more critical of taxation, regulation

1. SMARTBUSINESS
2011-12 ANNUAL REPORT

3. What is SmartBusiness.................................................................................. 1
Message from the Director......................................................... 2
SmartBusiness Stats...................................................................... 2
SmartBusiness Referrals................................................................................ 3
Table of Reasons for Referral....................................................................... 3
Contents
Business Climate.............................................................................................. 4
Key Issues.......................................................................................... 5
Halifax Plays to Its Strengths....................................................... 5
Municipal Services......................................................................... 6
Services Meet Mixed Results...................................................... 6
Business Composition................................................................................... 7
Halifax’s Workforce........................................................................ 7
Sales ................................................................................................... 8
Innovation....................................................................................... 8
Impediments to Growth............................................................................... 9
International Commerce.............................................................................. 10
Immigration................................................................................... 11
Conclusions...................................................................................................... 11
Our Smart Business Team.............................................................................. 12
Our Staff............................................................................................ 13

4. 1 WHAT IS SMARTBUSINESS?
Quick Fact: The SmartBusiness program was first introduced in 2004.
Created in 1996, the Greater Halifax Partnership (the Partnership) acts as a key catalyst
for economic growth and confidence in Halifax, the economic hub of Atlantic Canada. A
public, private partnership, our mission is to:
• Keep and grow businesses
• Attract new investments
• Strengthen the community
SmartBusiness is the Partnership’s Business Retention and Expansion (BRE) initiative. It acts as a hub that
connects CEOs, owners, and managers to resources in our community and provide a full range of expertise
and business solutions. It is designed to assist companies from small start ups looking to make connections
and access resources, to large businesses looking to develop a product or service. The Partnership provides
what they need to grow business and succeed in Halifax.
SmartBusiness meets face-to-face with employers to hear first-hand about the challenges, needs, and
opportunities that impact on competitiveness. The businesses are then referred to members of our Action
Team who can provide tailored business solutions for these clients. Our Action Team taps into the acumen
and experience of more than 30 senior business and government leaders, valuable information, and
programs designed to help your business succeed. SmartBusiness is a central part of the Partnership’s
operations and an excellent resource for businesses in Greater Halifax.
SmartBusiness has received two awards: In 2005, it received the Business Retention and Expansion
International’s “Best BRE Initiatives” Award, and in 2006 the Royal Bank Award for Best Economic
Development Program in Canada presented by the Economic Developers Association of Canada (EDAC).
In addition to this recognition, SmartBusiness has been emulated in cities across Canada and has been
adopted as a key operating component of every Regional Development Authority in Nova Scotia.

5. 2
I would like to take this opportunity to thank everyone who took part in
this tremendous effort. The ongoing support of the Action Team, staff, local
business, and the community at large has been integral to our successes.
Message from
the Director With your help we have reached out to more than 200 businesses,
resolved deep-seated issues for local entrepreneurs, helped empower the
community, and brought positive change to Greater Halifax. Irving’s $25B
shipbuilding win, Shell’s $1B offshore lease, and other major projects in
the region signal more exciting opportunities for the future. SmartBusiness
is all about responding to businesses with real answers in real-time and
we will continue to serve all the businesses of Halifax - helping them seize
opportunities.
-Robyn Webb
Director, SmartBusiness
SMARTBUSINESS STATS
FISCAL YEAR 2011
• 1,969+ jobs created and retained
• 251 business consultations
• 213 retention visits
• 262 referrals generated
• 57% of issues successfully closed
• 29% of issues currently active
• 14% of issues unable to close
Since April 1st, 2004:
• 8,436+ jobs created and retained
• 2,682 business consultations
• 2,186 retention visits
• 1,796 referrals generated
• 66% of issues successfully closed
• 4% of issues currently active
• 30% of issues unable to close.

6. 3 SMARTBUSINESS REFERRALS
From April 1st, 2011 to March 31st 2012, SmartBusiness consulted with 251 businesses,
the majority of which were Small and Medium sized Enterprises (SMEs). This report is a
compilation of the 213 retention visits to local businesses and their experiences with the
Halifax economy. Retention visits cover a variety of issues ranging from: perceptions of the
local business climate, to the company’s local workforce, to sales, even immigration issues.
Of these visits, 53.5% were in Halifax, 15.5% in Dartmouth, 9.5% in Burnside Business Park,
6.5% in Bedford, 2% in Sackville, and 13% throughout other regions of Greater Halifax.
Visits spanned across every industry, but we focused on a few key sectors due to their high growth and
strategic potential. These sectors include Aerospace & Defence, Digital Industries, Education, Finance &
Insurance, Life Sciences, Oceans, and Transportation.
SmartBusiness intelligence has highlighted significant issues throughout the business community,
what their key concerns are, and what prevents them from growing. Through our Action Team, we have
connected companies to skilled immigrants, to financing opportunities, and to resources in our community
to help them succeed. This fiscal year, our team resolved 161 unique business issues and helped create
almost 2,000 jobs.
REASONS FOR REFERRAL 100%
The top three consultation referrals in 2011/12 Expanding a business
90%
came from business looking to expand their
business, leverage Partnership resources/ Greater Halifax Partnership
36.0%
programs, and develop their local workforce. 80%
Some referrals may be similar, but are classified Workforce development
70%
into different needs. The Partnership referred
43+ companies for the Productivity Investment Provincial government
Program (PIP) and these referrals spanned 60%
categories from Workforce Development to 16.8% Exporting
Expanding a Business. 50%
Immigration
Expanding a Business: These requests involve
Entrepreneurship and Commercialization. 40% 13.0%
Financial assistance
They entail creating business plans, relocation
assistance, and many tools that our Action 30% 8.1%
Team members provide relating to expanding Municipal assistance
one’s market presence. 8.1%
20%
Recruitment and Retention
5.6%
Greater Halifax Partnership: Our organization
has a number of in-house resources and 10% 3.7%
1.9% Other
programs separate from SmartBusiness. These 1.9%
5.0%
can include assistance from our research 0%
team, the Connector Program, and even our
Community Economic Development initiatives.
Workforce Development: These requests involve assistance with Skills and Labour. They can involve
training, assistance with investment in human capital, help with specific professional certifications, and
working with educators to provide certain skills.

7. 4 BUSINESS CLIMATE
The consensus among businesses consulted was that Halifax’s current climate is Good and
that there was a strong sense of confidence moving forward. 62% of surveyed companies
believe that the current business climate is Good or Excellent; although this number is
down from previous years.
100%
6 6 8 90%
13 17
16 80%
30 31
23 70%
60% Poor
50% Fair
57 70 40% Good
47 52
54 30%
Excellent
20%
10%
21 17 12 13 8 0%
2007 2008 2009 2010 2011
These businesses were also asked about their past experiences and predictions for the future. When
comparing their current experiences with 5 years ago, before the recession, 52% claimed that the business
climate is better today, while only 23% claimed that it was worse. When looking at future expectations, 75%
predicted that climate would be better in 5 years, while only 8% believed the climate would worsen.
The data suggests that Halifax has emerged from the recovery; businesses are confident that the economy
will continue to grow and that the worst is behind us. Also, while the current opinions of the business
climate are not as rosy as they were last year, future expectations have significantly improved.
The news about Irving Shipbuilding’s win of a $25 billion procurement right has been a major part of
comments surrounding business confidence. Many companies have expressed a need to capitalize on the
opportunity and to take advantage of this landmark deal.
The overall picture of Halifax is one of stability, rather than outward enthusiasm. There is very little worry
about the state of the economy. Businesses see a solid business city with strong fundamentals such as an
educated workforce and a highly developed transportation network. Many businesses remain cautiously
optimistic as they wait for ongoing developments to unfold.
Moving forward will require leadership and direction, as well as a detailed understanding of individual
elements of the business climate. Fortunately, after more than 200 hours of face-to-face time with
businesses in Halifax, the SmartBusiness team has collected competitive intelligence on the key factors and
important issues in Greater Halifax.

8. 5 KEY ISSUES
Excellent
Good
Neutral
Economic development organizations
Municipal government regulation
Provincial government regulation
Recreational/Cultural amenities
Shipping and transport services
Federal government regulation
Workers compensation rates
Fair
Community college (NSCC)
Provincial tax structure
Municipal tax structure
Workforce availability
Federal tax structure
Internet/Broadband
Provincial highways
Workforce quality
Phone/Cell phone
Utility/Electricity
P - 12 education
Port facilities
Rail services
Poor
Universities
Air access
Housing
Less Important More Important Critically Important
Surveyed businesses were asked to rate a number of factors as either Poor, Fair, Good, or Excellent and to
choose which three factors were most important to their operations. These ratings were used to determine
what issues businesses thought were most important, least important, and how well the city performed.
The most important issues were abundantly clear, Workforce Quality (a top-3 issue for 48% of businesses)
and Workforce Availability (45%) were mentioned noticeably more than any other part of the business
climate. Provincial Regulation (22%) was also mentioned as a significant issue for business’s operations.
HALIFAX PLAYS TO ITS STRENGTHS
Halifax businesses were exceptionally pleased with the performance of two types of factors: those dealing
with higher education and those dealing with transportation infrastructure.
Community College (NSCC) was given the highest preference-weighted rating of any business climate
factor, with 52% of businesses calling it Excellent, 39% Good, 7% Fair, and only 1% calling it Poor. Post-
Secondary Institutions followed closely behind with 46% Excellent, 46% Good, 5% Fair, 3% Poor. This should
come as no surprise to those familiar with the city, Halifax is known for its high quality educational facilities
and large student/graduate population.
Businesses also expressed high satisfaction with a number of key transportation factors. Shipping/
Transportation Services, Port Facilities, and Air Access all rated very positively, with Rail Services being given
the lowest rating, between Good and Fair.
Perhaps the most troubling finding, is the negative opinion businesses have of regulatory regimes and
taxation, both at the municipal and provincial level. Not only do businesses rate these factors poorly,
they also consider them major issues in the businesses climate. This is clearly an area where action and
leadership is necessary.

9. 6 MUNICIPAL SERVICES
100%
6 5
9 90%
9 22 22 15
30 30 27
15 80%
70%
17
28 60%
59 27 35
36 50% Poor
56 68
40% Fair
Good
59 30%
45 Excellent
39 20%
34
34
25 10%
20
12
5 2 4 3 0%
Surveyed businesses were asked to rate a series of municipal services as either Poor, Fair, Good, or Excellent.
This measurement of opinion shows us how businesses interact with municipal services, where there is
room for improvement, and where the city has succeeded. SmartBusiness clients also frequently provide
comments which help to guide discussion and deliver input on service delivery.
It is important to note that due to staffing, a large portion of these surveys occurred during February and
March, meaning much of the data was collected during the transit strike. There is marked, negative shift
in opinions of public transit during this time, which provides a biased picture of transit performance. One
should avoid interpreting these opinions as representation of general transit performance.
SERVICES MEET MIXED RESULTS
Halifax businesses noted some successes and some concerns in municipal service delivery. Notably,
businesses trumpeted the city’s successes at direct service delivery such as water, sewer, and police
protection, while it admonished regulatory and planning services such as bylaw enforcement, zoning, and
local road access.
The commentary from the surveyed companies paints a picture of a very capable city, skilled in service
quality, that runs into issues with planning and strategic direction. Negative opinions, even in the successful
services, all point to capacity issues, a lack of access, legal issues, and planning priorities. Positive opinions,
specifically in police protection, point to great use of limited resources, recent improvements in presence,
and useful tools available to the public.
A common complaint for bylaw enforcement, zoning, and even permitting, is that the interpretation of the
rules tends to be more of a problem that the regulation itself. Many businesses have detailed accounts of
difficulties with being given a set of rules to follow, and then later running into issues when the rules are
interpreted more strictly, or in a different way. The theme is that businesses would prefer a city that helps
them meet regulatory standards, rather than one punishes them for being below grade. Their vision is for a
city that coaches them throughout the process, rather than judging them at the end.

10. 7 BUSINESSES COMPOSITION
SmartBusiness surveyed 213 companies this fiscal year; of which 56.5% were previous
clients, and the rest being first time visitations. Of all of these businesses, 90.3% were
privately owned, where 9.7% were publicly held. This may not be representative of
businesses in Halifax, but a symptom of which types of businesses typically approach the
Partnership. Larger, more established businesses tend to be in less need of assistance.
Despite this selection bias, Haligonian businesses tend to be very prepared. Almost three
quarters (71.4%) of businesses surveyed had a strategic plan in place at the time of their
retention visit. Additionally, 52.3% of businesses either had an industry certification, such
as Six-Sigma or ISO 9001, or were in the process of acquiring one.
HALIFAX’S WORKFORCE
A key finding from SmartBusiness intelligence is that businesses in Halifax tend to have a loyal workforce;
most companies experience low-to-no turnover. 70.2% of surveyed businesses reported less than 5%
annual turnover, with more than half of those companies reporting no turnover at all. Additionally, only
13.3% of businesses reported over 10% turnover, with 5.1% reporting a very high level turnover rate.
Of those surveyed, 36.6% of businesses noted challenges hiring specific kinds of occupations. Typical
reasons involved high cross-industry competition for workers with certain kinds of training, or the lack of
a local institution which provided a
certain skill set.
Companies were much less worried
about retention, 88.8% of companies 1-5% Turnover
said they had no issues retaining any 29.7%
of their workers, while 11.2% could
list at least one occupation where
retention was an issue. 6-10%
0% Turnover Turnover
8.4% of companies noted upcoming 40.5% 16.5%
concerns with retirements in a 11-25%
>25% Turnover
particular occupation. This is a
Turnover 8.2%
surprisingly low number given the
5.1%
age demographics in North America.
When asked how employment
levels had changed over the past
year, 45.2% said they had increased
the size of their staff, 48.4% said
they had kept levels the same, and
6.4% said they had scaled back their
staffing levels.
All of this data points to a Halifax with a stable workforce, and an appetite for new workers. With the
lion’s share of companies hiring, very little turnover, and such a low share of companies worried about
retirements and retention, it is understandable that so many companies are confident about the city’s
future.

11. 8 SALES
Quick Fact: 63% of businesses in Halifax sell goods or services to government, whether provincial,
federal or MASH (Municipal, Academic, Schools and Hospitals).
Businesses had a much better opinion of their own sales, than those of their competitors.
When asked about the historical sales trend, both at their own facility and their industry in
general, their opinions favoured their local operations:
How have sales changed... ...at this facility? ...within in the industry?
Increasing 56.5% 48.0%
Staying the same 27.6% 33.9%
Declining 15.9% 18.1%
A sizeable share of businesses in Halifax deal online. Of the companies surveyed, 30.0% sell products
or services through the internet and 13.6% are part of an internet based supply chain or inventory
management system. These businesses represent a sizeable faction in the city’s industrial portfolio.
INNOVATION
Local businesses are constantly innovating. In the last three years, 20.8% of surveyed businesses have
introduced a new good/service to market, or introduced a significantly improved business process to their
operations. In addition to these companies, 19.4% have done both.
Of those companies who innovated, 54.0% sought government funding or tax credits in order to assist
their plans. The most commonly cited sources of funding were the Scientific Research & Experimental
Development Tax Credit (SR&ED) and the National Research Council’s Industrial Research Assistance
Program (IRAP). The share of surveyed businesses who accessed these programs is down from pre-recession
levels (60% in 2007-08) but up from recent years (47% in 2009-10). It is unclear whether this is due to a lack
of access, or an impediment to invest, but businesses continue to innovate.

12. 9 IMPEDIMENTS TO GROWTH
Every surveyed company is asked about the biggest impediment to their company’s
growth. Answers are varied, and many have very specific issues, a road widening, legal
amendment for their industry, a new building for their operations, or a specific new hire are
some examples; however, there are some themes. Overall, 29.3% listed their responses as
‘Other’, as mentioned above. Those who did not answer ‘Other’ listed the following as the
key impediment to growth:
Access to Capital (44.1%): The key impediment to growth appears to be a lack of capital. Businesses are
fuelled by investment for their projects and expansions. Without the ability to secure funding, many
projects go undeveloped. While this is a
constant concern for business, such
a large share of mentions suggests
that there may be more to this issue
than meets the eye.
Improved Workforce Availability/ Workforce
Quality (22.9%): A commonly availability/
mentioned impediment was a quality Friendier
need for specific skills. Very few had 22.9% climate
Access to
troubles with the number of workers capital 12.7%
they needed, but often required very 44.1% Opportunities
particular talents which they could for exporting
not acquire locally. 8.5%
5.1%
Friendlier Local Business Climate 4.2%
2.5%
(12.7%): Many companies expressed
issues with consumers being
unwilling to buy local, because
international goods were seen as
higher quality, sometimes despite
the success of the products in
the international market. For many
companies, this phenomenon is highly frustrating.
Improved Opportunities for Exporting (8.5%): Some of our clients were having difficulties finding
international buyers for their products or getting into the export market.
Improved Provincial Regulations (5.1%): A number of clients had problems with provincial regulations,
whether it was the consistency of enforcement, the regulation itself, or other concerns.
Lower Taxes (4.2%): Surprisingly, only a small share of businesses considered taxation to be the biggest
impediment to growth. This may suggest that although the benefits of taxation are widespread, their
effects are only marginal.
Improved Municipal Regulations (2.5%): Similar to provincial regulation, some companies expressed
frustration with certain municipal regulations or regulatory agencies.

13. 10 INTERNATIONAL COMMERCE
Quick Fact: 60% of local businesses are planning to expand to new markets outside Nova Scotia.
Halifax’s economy is primarily driven by local and regional sales. Of the companies
surveyed, 42.5% of companies had no sales, whatsoever, outside of the Atlantic Provinces.
However, only half of local businesses consider Halifax to be their largest market. Many
companies have a larger share of their sales throughout Nova Scotia, and the Atlantic
Provinces. This speaks to Halifax as a regional centre, though one that has a lot of
opportunities surrounding international exports.
Your largest market... ...in terms of annual sales ...for supplies/raw materials
Greater Halifax 49.6% 54.7%
The rest of Nova Scotia 13.4% 10.7%
Atlantic Provinces 10.2% 4.0%
Other Canada 7.9% 14.6%
International 18.9% 16.0%
In terms of supplies and raw materials the story is very similar. 34.7% of Haligonian companies do not get
any inputs from outside Atlantic Canada and 65.4% of companies use Nova Scotian businesses as their
primary suppliers.
It is important to note the large number of companies that expressed an interest or were currently
expanding to new markets. This active expansion of businesses may mean changes in the distribution of
sales and materials in years to come. It speaks highly of the local economy and the integration of Halifax as
a more internationally focused city.

14. 11 IMMIGRATION
Quick Fact: 49% of surveyed local businesses employ immigrants.
Immigrants are an excellent source of skilled labour for any company. Many companies
hire immigrants when they need specialized skills that they cannot find locally. Despite
the common misconception, immigrants tend to be hired for highly technical roles in the
workforce. Of our surveyed companies, the most common roles for immigrant workers
were in Engineering, Accounting/Finance, and Administration.
There is a large appetite for immigrant labour in Halifax, of the companies who said they
do not currently hire immigrants, 66.2% said they were ready to benefit from hiring an
immigrant, 7.8% said they were not, and 26.0% did not know.
CONCLUSIONS
The business climate in Halifax is strong and stable. Local businesses had positive things to say about our
city and many suggestions and input for further improvement. There are areas of concern that they have
raised with the current economy, but they expressed a strong sense that the climate has and will continue
to improve.
The Partnership will continue to assist companies and gather intelligence on the business climate.
Providing thought leadership and guiding discussion between business and government is an essential
step in creating positive change. Providing an accurate picture of the local economy and of business
concerns is part of the process, and we invite others to help take part.

15. 12 OUR SMARTBUSINESS TEAM
Quick Fact: The SmartBusiness Action Team consists of three dedicated, full-time staff and over
30 member organizations, each with at least one business specialist.
Our Action Team includes specialists from the following organizations:
Atlantic Canada Opportunities
Aliant Inc. Black Business Initiative
Agency (ACOA)
Blue Water Business Business Development Bank of
Canada Business - Nova Scotia
Development Corporation Canada
Canadian Youth Business Centre for Entrepreneurship Centre for Women in Business at
Foundation Education and Development Mount Saint Vincent University
Dalhousie University Career
Credit Union Atlantic Destination Halifax
Services Centre
Eco-Efficiency Centre, Dalhousie
Entrepreneur’s Forum Export Development Canada
University
Foreign Affairs & International
Halifax Chamber of Commerce Halifax Regional Municipality
Trade Canada
Immigrant Settlement & Mount Saint Vincent University -
Job Search Services
Integration Services (ISIS) Career Planning Centre
Nova Scotia Community College Nova Scotia Department of
Nova Scotia Business Inc. (NSBI)
(NSCC) Education
Nova Scotia Economic and Rural Nova Scotia Economic
Nova Scotia Office of Immigration
Development (NSERDT) Development - Procurement
Saint Mary’s Business SMU Student Employment
Nova Scotia Power Inc.
Development Centre Centre/Co-Op
Worker’s Compensation Board of World Trade Centre Atlantic
TEAM Work Cooperative Ltd.
Nova Scotia Canada

16. Robyn Webb, (902) 490-6268
Director, SmartBusiness
Greater Halifax Partnership rwebb@greaterhalifax.com
Jason Guidry, Email: jguidry@greaterhalifax.com
Account Executive, SmartBusiness Phone: (902) 490-6115
Tammy Milbury, Email: tmilbury@greaterhalifax.com
Account Executive, SmartBusiness Phone: (902) 490-6986
• If your organization needs help navigating
today’s business challenges, please contact
one of our SmartBusiness representatives.
• If you would like more information about the
Greater Halifax Partnership, you can check
out our website at www.greaterhalifax.com
or reach us by phone at (902) 490-6000.