17+ Inspiring Small Business Statistics for Canada

Are you ready to learn all the ins and outs of the Canadian small business sector? If your answer is yes, then check out the small business statistics for Canada that we have compiled for you!

According to the definition, small businesses revolve around the number of employees they have and the amount of money they make. Specifically, firms that have under 100 employees and make under $500,000 annually are considered small businesses.

The number of small businesses in Canada has been outgrowing the percentage of big and medium businesses. Here’s what the stats have to say.

Amazing Small Business Statistics (Editor’s Choice)

• In December 2019, 97.9% of the businesses in Canada were small businesses.
• Small businesses employ 8.4 million Canadians.
• 82% of business leaders with 20 or more employees said employees are key assets.
• In 2016, small businesses contributed 41.9% to Canadian GDP.
• 55.4% of all Canadian small business jobs are within five industries.
• Canadian women who start businesses make 58% less than their male counterparts.
• 78.8% of Canadian businesses are part of the services-producing sector.

Small Business Statistics for Canada from 2020

1. 1.2 million (97.9%) of businesses in Canada are small businesses.

(Source: Canada.ca)

You might be surprised to learn that the number of small businesses in Canada in 2020 is far greater than the number of medium and large businesses.

In fact, as per the small business statistics for Canada from 2019, an astonishing 97.9% of the businesses are categorized as small. So, it’s clear that small businesses are truly essential to the Canadian economy.

As per the latest Canadian business statistics, in December 2019, out of the total 1.23 million businesses in Canada, only 22,905 (1.9%) were medium-sized businesses, and 2,978 (0.2%) were large businesses.

2. 96,580 SMEs were created annually between 2013 and 2017.

(Source: Canada.ca)

How many small businesses in Canada are opening and closing?

On average, 96,580 SMEs were created annually between 2013 and 2017. During the same time, about 90,600 businesses disappeared each year.

In the period between 2001 and 2017, the number of businesses was generally increasing. However, in 2013 and 2016, more businesses were shutting down than opening.

The number of new service-oriented businesses was higher than the number of goods-producing businesses in the same time period.

3. 35.1% of SMEs in Canada that produce goods last at least 16 years.

(Source: Canada.ca)

On the other hand, about 29.6% of service-oriented businesses survived the same amount of time. The survival rate of ten years plus of businesses that produce goods was 49%. In comparison, the business survival rate of service-oriented businesses was 44.2%.

4. As of 2019, small businesses employed 8.4 million Canadians.

(Source: Canada.ca)

Small business owners in Canada are the largest employers in Canada, giving work to 68.8% of the total labour force in the private sector. Medium-sized businesses, on the other hand, employed only 2.4 million people, which accounts for 19.7% of the total private labour force.

The smaller number of businesses in Canada that are large businesses employed 1.4 million individuals (11.5%). Altogether, small businesses accounted to 35.8% of net employment growth in the private sector between 2014 and 2019.

The contribution of medium-sized businesses amounted to 25.4%, and large businesses contributed 38.8% of net employment growth.

5. Between 2013 and 2017, net employment grew by 639,200, a 1.1.% growth each year on average, small business statistics for Canada confirm.

(Source: CanadianSME)

In the same period, the net employment change among small businesses was 431,600. Small businesses contributed to net employment change by an impressive 67.5%. Among these, small businesses can be any home-based business in Canada.

6. In 2016, small businesses contributed 41.9% to Canadian GDP.

(Source: Canada.ca)

The different types of businesses in Canada are all important. Medium-sized businesses contributed to 13.4%, and large businesses to 44.7%. Between 2012 and 2016, SMB business contribution amounted to 51.1% of GDP in the goods-producing sector and 55.7% in the services-producing sector.

7. 55.4% of all Canadian small business jobs are within five industries.

(Source: Wagepoint)

The different types of small businesses are widespread in many industries, but the five industries where more than half of all small Canadian businesses are concentrated are construction (12.3%), retail trade (12.1%), professional, scientific and technical services (12.1%), healthcare and social assistance (9.5%), and other services (9.2%).

What’s more:

Small business statistics show 1.95 million employees working in small businesses are in the wholesale and retail industry, 1.01 million are in accommodation and food services, 0.82 million are in manufacturing, and another 0.82 million are in construction.

8. About 78.8% of Canadian businesses are part of the services-producing sector.

(Source: Canada.ca)

Compared to the large number of Canadian businesses in the services-producing sector, the percentage of businesses that produce goods is much lower.

In fact, only 21.3% out of 1,226,454 businesses are part of the goods-producing sector.

About 54.9% of these businesses are micro-enterprises that have up to four employees. The other 73.6% of businesses have five to nine employees. Finally, three out of four businesses in Canada have one to nine employees.

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Challenges and Opportunities: Canadian SME

9. 48% of businesses with fewer than 20 employees were expected to use ecommerce platforms in 2020.

(Source: BDC)

It might come as a surprise, but prior to 2020, less than one-quarter of small companies in Canada with fewer than 20 employees were using ecommerce platforms in their business. The predictions for 2020 came from the BDC website analysis.

One of the research subjects was to determine the expected growth of ecommerce and how it will affect business. The best Canadian bank for small businesses also studied the expected effects of process automation and data analytics.

10. 38% of business leaders said the digital economy already affects the way their businesses operate, small business statistics for Canada reveal.

(Source: BDC)

In addition, 29% said it has transformed their business model. These changes have been very beneficial for the business in more than a few ways.

For instance, 49% said digital technologies have improved customer experience, 34% witnessed revenue growth, and 36% indicated that digital technologies enhanced efficiency by lower costs and better productivity.

11. 82% of business leaders with 20 or fewer employees said employees are key assets to the most profitable business in Canada.

(Source: BDC)

Survey results show employees are critical assets.

The thing is:

Skilled employees promote growth and efficiency. In fact, 55% of survey respondents agreed that recruiting skilled workers is super important for the success of the business.

12. Immigrants will account for up to 80% of Canada’s population growth by 2032.

(Source: BDC)

By 2032, one-in-four Canadians will have been born in another country. Regional disparities are expected, too.

For instance, 34% of the population of Ontario will be foreign-born by 2032. In contrast, only 3% of the population of Newfoundland and Labrador is projected to be foreign-born.

Immigration has a positive impact on businesses. Some benefits include better financial performance and greater employee engagement and effectiveness.

In other words:

Everything you need to create the best startup business in Canada.

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Canadian Women in Small Business

13. There were 1,079,000 self-employed Canadian women in 2018.

(Source: TheBalance)

Canadian women accounted for 37% of all self-employed persons. In addition, the latest Canadian small business women related statistics show that the number of female entrepreneurs is on the rise. Usually, they’re young but experienced in management.

Moreover, analysis shows that women are more likely to start small companies, typically in the retail and services sectors.

14. Canadian women who start businesses make 58% less than their male counterparts.

(Source: Global News)

The latest business stats reveal female entrepreneurs earn considerably less than their male counterparts. There are different barriers to business success, including the lack of opportunity for securing venture capital funding to promote the growth of small women-owned Canadian businesses. A huge list of small businesses in Canada suffers from this issue.

15. 70% of those buying from women-owned small and medium-sized businesses are individual consumers who use the product or service.

(Source: PayPal)

In addition, 19% of those buying from the top small businesses in Canada owned by women are full-time businesses, 10% are social groups of consumers like parents, colleagues, or friends, and 1% are casual sellers who resell the product or service.

16. 73% of female entrepreneurs selling online highlight ecommerce as a factor for sustained growth and success.

(Source: PayPal)

Ecommerce tools positively influence the revenue of women-owned businesses in Canada. In addition, they also increase revenue potential. Business statistics show 85% of women business owners are aware that an online presence can make them more competitive on the market.

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Key Small Business Statistics by Region

17. 642,250 small businesses are in Ontario and Quebec.

(Source: Huron)

These figures are equivalent to more than half of the total number of businesses in Canada. Naturally, there’s a correlation between the Canadian provinces by size and the number of small businesses.

In Western Canada, the largest number of small Canadian companies as of 2017 were concentrated in British Columbia. Among the Atlantic provinces, Nova Scotia leads, with 28,874 small businesses.

Lastly, Alberta and Prince Edward Island have the greatest number of small businesses per 1,000 inhabitants.

18. 98% of net employment change in Saskatchewan is attributable to SMEs.

(Source: Huron)

Saskatchewan observed the highest contribution to the net employment change among small and medium-sized businesses in Canada in the five years up to December 2017.

British Columbia followed with 91.4%. Small and midsize businesses contributed to 84.3% of net employment change in Ontario, where net employment was highest at 317,600.

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Conclusion

If you have small business ideas, Canada is a great place to try them. Small business is the mainstay of the Canadian economy. The booming digital economy and the diverse workforce are fuelling continuous growth in many sectors.

Bottom line:

The future of Canadian small businesses is bright.