Voice of Business: A Portrait of Small Business In Canada
/Consumer behaviours have changed and with it the landscape for small businesses across Canada. It’s important to step back and have a look at what’s happening in the industry.
A new report from the Canadian Chamber of Commerce’s Business Data Lab titled A Portrait of Small Business in Canada: Adaption, Agility, All At Once does just that.
Small businesses are the backbone of the economy, making up 98 per cent of businesses in Canada and employing 11 million people. Small businesses are considered businesses with 1 to 99 employees. Within that designation, micro businesses (one to four employees) are by far the most common with the median small business having fewer than five employees.
The report states: “This underscores the importance of improving our understanding of the business realities of all small firms, but especially micro firms, while ensuring that adequate financial, operational and regulatory support measures boost the resilience of small and micro businesses for the sake of Canada’s economy. Put simply, the survival of micro firms is a macroeconomic issue for Canada.”
The report also looks into the realities, challenges, and opportunities for small businesses owned by women, persons with disabilities, members of the LGBTQ2s+ community, immigrants to Canada, Indigenous peoples, and visible minorities.
For example, immigrants make up 25.5 per cent of all private sector businesses, well above their 23 per cent representation in Canada’s population. However, within this, immigrants are less likely to own larger businesses.
Progress was made in recent years with women having more opportunity through flexible work arrangements, leading to more women in in-demand work at higher pay. While government programming aims to increase access to childcare, the transition back to the physical workspace is threatening to scale back progress for women.
Majority ownership of private sector small businesses in Canada, by underrepresented/equity-seeking groups.
Immigrant to Canada – 25.5 per cent of businesses/23 per cent of population
Visible Minority – 19.2 per cent of businesses/26.5 per cent of population
Women – 17.8 per cent of businesses/50.9 per cent of population
LGBTQ2s+ – 3.3 per cent of businesses/4 per cent of population
Persons with a disability – 2.2 of businesses/22 per cent of population
Indigenous – 2.2 per cent of businesses/5 per cent of population