We can unlock a new wave of productivity by making entrepreneurship a public priority

Canada has no shortage of natural resources, educated workers or innovative entrepreneurs. Yet concerns about productivity, economic growth and business investment continue to dominate public policy discussions. As governments search for ways to strengthen the economy, one source of inspiration comes from an unlikely place: the ideas of British entrepreneur and public policy advocate Lord Vinson.

Earlier this year, I was informed by the University of Buckingham in the United Kingdom that I had been selected as a Lord Vinson Scholar. As I prepare for a residency at the Vinson Centre for the Public Understanding of Economics and Entrepreneurship, I have been reflecting on the ideas and legacy of the man whose name the scholarship bears.

While Lord Vinson is not widely known in Canada, many of the economic principles he championed remain highly relevant to our country’s future prosperity.

Born Ronald Alfred Vinson, he built his reputation first as an entrepreneur. In 1952, at the age of 21, he founded a small plastics company that grew into a major industrial enterprise employing more than 1,000 workers. The company later received the Queen’s Award for Industry and became publicly traded.

What distinguished Lord Vinson was not simply his business success but his belief that economic growth should be broadly shared. Long before employee ownership became a popular policy topic, he allocated a portion of company shares to employees, giving workers a direct stake in the firm’s success.

Canada now ranks near the bottom of the OECD in business investment growth, and productivity gains have lagged behind many of our competitors. Productivity growth is widely regarded by economists as one of the main drivers of rising incomes and living standards over time. Economists across the political spectrum increasingly agree that long-term prosperity depends on producing more value with the same labour and capital.

That is why entrepreneurship matters. New firms are often the source of innovation, competition and productivity improvements that established businesses fail to deliver. Encouraging more Canadians to start businesses, invest in innovation and build wealth-producing enterprises should be a national priority.

Lord Vinson believed that entrepreneurship was not merely a private activity but a public good. Economic growth, in his view, begins with individuals willing to take risks, innovate and create value.

His experience also demonstrated the importance of ownership. A healthy economy is not simply one in which people earn wages. It is one in which citizens participate in wealth creation through business ownership, investments and capital accumulation.

Decades before employee ownership became fashionable, Vinson understood that workers who share in a company’s success have a greater stake in innovation, productivity and long-term growth. At a time when wealth inequality and economic insecurity are growing concerns, broader ownership may offer a way to strengthen both prosperity and social cohesion.

That idea deserves renewed attention in Canada.

Expanding opportunities for employee ownership and entrepreneurship could help strengthen Canada’s middle class while boosting economic opportunity.

These ideas did not remain confined to Lord Vinson’s business career.

After leaving day-to-day business operations, Lord Vinson turned his attention to public policy. During a period of significant economic uncertainty in Britain, he became involved with organizations such as the Institute of Economic Affairs and the Centre for Policy Studies. These influential think tanks helped shape many of the market-oriented reforms associated with the Thatcher era.

Whether one agrees with all of their policy recommendations is beside the point. Economic prosperity is shaped not only by markets and governments but also by the ideas that guide public policy.

Perhaps his most enduring legacy is his commitment to economic education. In 2018, his philanthropic support led to the creation of the Vinson Centre for the Public Understanding of Economics and Entrepreneurship at the University of Buckingham. The centre promotes research, teaching and public engagement focused on economics and public policy.

On the centre’s launch, Lord Vinson explained his motivation: “As an entrepreneur, I have been exceptionally fortunate in life. I also wanted to foster the qualities that create new businesses, because they are the foundation of the prosperity of any nation.”

If Canada is serious about improving productivity, encouraging investment and strengthening economic growth, it would do well to embrace Lord Vinson’s insight.

Constantine Passaris is a professor of economics at the University of New Brunswick. He is a recipient of the King Charles III Coronation Medal and the Order of New Brunswick.