Five facts everyone should know about Canadian small businesses.
Whether you’re an aspiring a small business owner, entrepreneur, or one of their tens of millions of customers, here are five facts everyone should know about Canadian small businesses.
- Business play a big role
You might be surprised to learn that 98.2 per cent of businesses operating in Canada are small businesses. However, it’s a lot less shocking when you think about the businesses you most frequent: the coffee shop, the restaurant, the spa, the dentist, the drycleaner, the bakery, the boutique … you get the picture. Small businesses are all around you.
- Are big on innovation
A recent study found that more than half of Canadian small businesses adopt technology faster of Canadian small businesses adopt technology faster than their large counterparts. Why? Small firms are more nimble and better able to implement changes, including adopting innovative technology to grow their business. Small businesses are an important source of Canadian innovation, accounting for 31 per cent of research and development (R&D) expenditure.
- Employ big numbers
When it comes to small businesses as employers, there’s nothing small about the number of jobs they create. In fact, these organizations are considered the backbone of our economy because they produce more jobs than any other type of business in Canada.
- Small business generate more than 100,000 jobs a year
- Nearly 70 per cent of Canada’s private labour force works for small business.
- Do big things for economy
If you’re not impressed with Canada’s small business community by now, perhaps this fact will seal the deal. Small businesses account for almost 30 per cent of Canada’s GDP, a key measure of our economic output. Small businesses are responsible for about 24 per cent of the total value of Canada’s exports, which is extremely beneficial for our economy and trade relationships.
- Have big challenges and big opportunity ahead
Running a small business isn’t easy. Of the 150,000 new small businesses that launch each year, only 51 per cent survive past their five year anniversary. That being said, Canada is a great place to be an entrepreneur. In fact, the World Bank’s Ease of Doing Business Index ranked our country as the second best place in the world to launch a company.
Why the high failure rate then? Most small business owners have passion, an idea and a solid business plan. But, even with all of these elements in place, many small business owners face unexpected financial challenges in the first few years of operating a business. That’s where we’d like to step in.
The opportunity ahead for Canadian small businesses is incredible, which is why we’re here to help owner achieve there goals.