No matter what size of business you operate, have you ever stopped to think about the importance to the overall economy of what your business contributes? As business owners, our focus is usually on the bottom line, as well it should be, however the statistics show that small business contributes about 28% on average to the total GDP in Canada.
GDP by definition is the total market value of all final goods and services produced in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports. A somewhat confusing equation, however the basic premise is to build on the GDP each quarter, which shows growth. (GDP rose .40% in the second quarter of 2013 over the previous quarter.)
Small business owners work very long hours, endure tremendous stress, need to be conversant in all areas of their business, and often encounter tremendous obstacles to growth. Owning a small business is not for the faint of heart! The upside is that small business owners, the employees they hire, the products and services they produce and sell, are critical pieces of our economic growth. The largest contributing sectors are agriculture, health, education, construction, and hospitality; however the contribution that every small business in any sector adds to the overall growth is very important. No wonder we celebrated Small Business month in October!
|Table 8: Small Businesses’ Contribution to GDP by Province, 2002 to 2011|
|Province||Contribution to GDP (Percent)|
|Newfoundland and Labrador||19||18||21||19||19||18||18||20||19||20|
|Prince Edward Island||32||29||31||30||30||29||29||29||26||32|
Note 1: In these data, small businesses comprise businesses with fewer than 50 employees, plus those operated by the self-employed with no paid employees.
Note 2: Differences between these data and those published in previous versions of Key Small Business Statistics reflect changes to the underlying data on which the numbers are based, as well as a refinement of the methodology used to generate the estimates.