10 things you (probably) didn’t know about Canadian SMEs
Contributor: Business Development Bank of Canada
Small business is big in Canada: 98.1% of all businesses have fewer than 100 employees. When you add in medium-sized businesses (100 to 499 employees), the percentage rises to 99.8%. They are the engine of the economy and their success is vital to Canada’s prosperity.
Here are 10 things you probably didn’t know about small and medium-sized businesses (SMEs) and their impact on Canada’s economy.
- There are almost 1.2 million SMEs in Canada.
- More than half (55%) of them have fewer than 4 employees.
- Only 1.7% are medium-sized businesses.
- SMEs employed almost 64% of private sector workers in 2011, or 6.8 million people across the country.
- Over the 2001 to 2011 period, SMEs were responsible for 54% of all jobs created on average by the private sector.
- SMEs represent 54.3% of the economic output produced in the business sector (in 2005).
- 86% of exporting companies have fewer than 100 employees, but produce only 25% of the total value of Canadian exports.
- The largest number of SMEs are in the retail industry (13%).
- Fewer than 1 out of 4 Canadian SMEs invest in research and development (R&D).
- Only half of new firms (53%) survive their 5th year of operation.
Source: Statistics Canada.
That’s why for 33 years the Business Development Bank of Canada (BDC) has been organizing Small Business Week.