Most of us know that small business in Canada is the economic driver. This is small business week so I thought I would share some of the statistics gathered by Industry Canada.
Number of Businesses
As of 2012, there were just over 1.08 million small businesses in Canada that had employees (excludes self-employed entrepreneurs and indeterminate businesses). Ninety-eight percent of businesses in Canada have 1 to 99 employees.
Taking into account entries and exits, the net increase in the number of small businesses was almost 22,000 over the 2008–2009 period.
As of 2012, small businesses employed over 7.7 million individuals in Canada, or 69.7 percent of the total private labour force. Small businesses created a little over 100,000 jobs, on average, between 2002 and 2012, accounting for almost 78 percent of all private jobs created on average.
Survival rates for small and medium-sized enterprises in Canada decline with time. About 80 percent of enterprises that entered the marketplace in 2008 survived for one full year and 72 percent of enterprises that entered the marketplace in 2007 survived for two years. The number of business bankruptcies in Canada fell by 56 percent between 2000 and 2010 to about 3,200 in 2012.
High-growth firms are present in every economic sector and are not just concentrated in knowledge-based industries. In terms of employment, the highest concentrations of high-growth firms in Canada during the 2006–2009 period were in construction (4.9 percent of all firms); business, building and other support services (4.6 percent); and professional, scientific and technical services (4.5 percent).
Over 50 percent of firms in both the manufacturing and service-producing sectors expect to grow between one and ten percent from 2012 to 2014.