There are many people who agree that small businesses are the backbone of Canadian economy, but they need to answer a few important questions. How much do they contribute to the gross domestic product of this country? How many small businesses are in Canada? How many people do they employ? What is a small business all about?
It’s true that small businesses kept Canadian economy from sinking into the deep water. Nowadays, small enterprises are just like the islands of stability because they manage to demonstrate resiliency during recession times, but they also lead their way during recoveries. They seem to enter their new reality that will force them to enter completely new markets and innovate to sustain their current growth.
The key secret behind the unique ability of small businesses to overcome and withstand hard economic times and conditions is their exposure to consumers in Canada. Their wallets are open for them, and this is what moves Canadian economy into its growth. The power of its housing market also has a positive impact on small businesses. To qualify as this kind of business, companies need to file their tax returns within the last 3 years, be incorporated, and have 1-99 hired workers. If you want to compare such enterprises with Canadian medium-sized businesses, keep in mind that they employ 100-499 workers, while larger companies have 500 and more.
When it comes to small businesses, you should understand that they comprise more than 98% of all Canadian companies these days. For example, if you work in a Canadian private sector, there is quite a high chance that you work for a small business. That’s because almost 70% of all people in Canada work for such enterprises. It’s interesting that more than 55% of all Canadian businesses are located in such major cities as Quebec and Ontario. In the Atlantic Provinces, there are only 7% of Canadian businesses, while western provinces contain around 35%.
Prince Edward Island has the highest employment rate in this country because its economy is structured around small businesses, unlike Ontario with its economy that includes many large companies in the modern manufacturing sector. The best thing is that small businesses keep creating new jobs in Canada. Finally, take into account that more than 85% of them survive 2 years. It’s clear that such enterprises play a major role in Canadian economy at the moment.
There are many people who agree that small businesses are the backbone of Canadian economy, but they need to answer a few important questions.