Canada’s take on small business

Small business is rising in Canada. Salesforce Canada calls it “a web of smaller enterprises combining to provide the country with an economic backbone.”

Today, small business takes on a deeper meaning than a company with fewer than 100 employees. Although the rate of new small businesses created in Canada is significantly down (35,000 created in 2013, compared to 115,000 in 2005), small businesses outperform other economic groups, supporting our country’s economic well-being. In a 2011 survey, 98 percent of adults said small business was important to Canada’s future and 94 per cent said small business was crucial to our local community.

Small business is a cornerstone of the Canadian economy, with 1.1 million small businesses in the country, according to the Business Development Bank of Canada (BDBC). With 98.2 per cent of all business in Canada falling into the small business category, 87 per cent are comprised of fewer than 20 employees. Ontario represents one-third of Canada’s population, accounting for 35 percent of small businesses.  Alberta, Saskatchewan, and British Columbia also have a high density of small businesses.

Innovation contributes to national growth

In 2012, small businesses in Canada spent $4.8 billion on research and development — this is close to 1/3 of all R&D investments in our country. A recent report from TD Economics estimated that 85 per cent of net job creation in the first two years of recovery coming out of the last three recessions took place in small and medium sized enterprises (SMEs).

The small business environment is seeing new dynamics with tech advances allowing us to reach the other side of the world in seconds. According to Salesforce Canada, tech service companies make up 11.6 per cent of small business in Canada, contributing to our country’s thriving intellectual property.

Small business is Canada’s economic resilience

In 2013, Canada’s population was 35.16 million. Considering this number, 2.7 million Canadians are self-employed and over 5 million work for small businesses (roughly 2.5 times the population of Toronto).

Small businesses are resilient, small businesses are survivors. SalesForce Canada indicates small business is the only group that has seen an increase in employment over the past five years, despite current economic conditions.  Large enterprises are largely treading water to regain lost revenues from five years ago. The Government of Canada supports small businesses through Canada’s Economic Action Plan, which includes tax reliefs for equipment, hiring credits, and tax cuts for small businesses.

Salesforce Canada notes companies with fewer than 100 employees have a better survival rate than those with fewer than 500 over a two-year span.  Go #smallbiz!

Author Christina

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  • Great work. Keep Posting.. QuickBooks manage accounting functions, including accounts payable, accounts receivable, credit card management and financial reporting for small business..

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