O Canada! The State of Small Business in Canada

By the small business content developers at  BizLaunch.com.

Small businesses, we salute you. You provide employment, innovation, and economic growth on a substantial scale — even the smallest business has an impact on the world around it.

So whether you’re a solopreneur, a micro-enterprise, or a small business with less than 100 employees, your firm is part of a growing trend that demonstrates the resilience, ingenuity, and initiative contributed by small businesses to Canada’s continued prosperity. In fact, according to a recent report by CIBC, small and medium enterprises kept the Canadian economy strong during last year’s economic downturn. During this time, small firms actually outperformed their larger counterparts as noted by TD Economics in this special report.

With over 1,000,000 small businesses aiding the Canadian economy, it might seem as though the market is saturated, but the reverse is true: the more, the merrier. While survival rates for new small businesses do decline over time, over 70% of small businesses survive into their second year and beyond.

In February of this year, KPMG reported that the new Canadian government would reduce the small business tax rate to 9% by 2019, which is a supportive move that will place more money in the hands of small business owners. This could eventually result in improvements to cash flow, which small business owners report is one of the biggest challenges they face. If you’ve been thinking about starting or purchasing a business, it’s a great time to take action.

Greater Opportunities

The face of entrepreneurship is evolving: more women are joining the ranks of small business ownership and many of them have postgraduate education. Statistically speaking, small business owners in Canada have achieved a higher level of education than the general population. One great advantage that women-owned small businesses demonstrate is the willingness to adopt innovation more readily than other business owners. This willingness to try new methods may provide an important competitive edge in the years to come from which other businesses can learn.

Domestic Support for Entrepreneurships

Within the country, small businesses enjoy a substantial amount of respect and importance from their compatriots. In fact, over 90% of Canadian adults would support their child or other family member starting a new business. A similar strong majority appreciate the products and services provided by small business and believe that they are a vital component of the community. The overall consensus is that most people notice the dynamic value of entrepreneurship and would like to see small business ownership grow and expand.

Government Assistance Programs

In addition to social support, those building a small business in Canada also have access to vigorous governmental support, including the Canadian Small Business Financing Program, which provides financing for eligible business expenses. Other stimulus opportunities include grants, employment insurance for self-employed individuals, as well as provincial government support for certain age groups, and other resources that provide information to prospective business owners.

No matter what province you’re doing business in, raise a glass to celebrate your fellow Canadian small business owners.

By Andrew Patricio

July 12, 2016