2008
This issue discusses Canada's venture capital (VC) activity during Q2 2008. This issue was delayed because of the federal election. Due to its late publication date, this issue does not contain the usual articles on Canadian technology clusters and business incubation.
This profile compares several characteristics of rural-based SMEs with those of SMEs in urban regions, including size, provincial distribution and source and type of financing required, as observed in 2004.
The July 2008 issue updates several sections, including data on the number of businesses in Canada, the number of people that work for small business, job creation, earnings of small business employees, the contribution of small businesses to Canada's gross domestic product, as well as the number of self-employed individuals, the number of hours they work and their contribution to job creation.
This issue discusses Canada's venture capital (VC) activity during Q1 2008. It includes an article that highlights some government, and government agency, VC investments announced during the quarter and provides an update on federal Budget 2007 announcements related to venture capital. An article on Edmonton describes the city's technology clusters, some supporting organizations, and a unique partnership between the University of Alberta technology transfer office and the Edmonton Economic Development Corporation that helps launch promising technology companies.
This profile summarizes the research on growth firms completed by Industry Canada's Small Business Branch and highlights their contribution to job creation, by firm size, region and industry and discusses the factors for successful growth and survival.
This year-end issue discusses Canada's venture capital (VC) activity during 2007, a year characterized by increased foreign investment in large deals and in late-stage Canadian firms. This issue's feature article highlights the ways in which business incubators support high growth innovative SMEs to become investment ready and attract VC investments. It also references a directory of some Canadian incubators.
The January 2008 issue updates several sections including data on the number of businesses in Canada, the number of people that work for small business, job creation and self-employment, the number of women entrepreneurs as well as bankruptcy statistics.
This report was undertaken to document the profiles of Canadian SME exporters and to gain a better understanding of the processes of internationalization adopted by SMEs.
2007
This issue reports on trends in venture capital (VC) activity in Canada during Q3 2007. As part of a new feature series, it showcases programs offered by the Ottawa Centre for Research and Innovation (OCRI) to help entrepreneurs transform ideas into opportunities for investors.
This issue reports on venture capital (VC) investment trends in the second quarter of 2007. It also discusses the challenges associated with collecting VC investment data in Alberta.
This profile shows the general characteristics and examines the financing activities of small and medium-sized enterprises (SMEs) in Ontario in 2004, and compares them with the national averages.
This profile shows the general characteristics and examines the financing activities of small and medium-sized enterprises (SMEs) in the Atlantic Provinces in 2004, and compares them with the national averages.
This profile examines the financing activities of small and medium-sized enterprises (SMEs) in the Prairie Provinces in 2004, and compares them with the national averages.
This profile shows the general characteristics and examines the financing activities of small and medium-sized enterprises (SMEs) in Quebec in 2004, and compares them with the national averages.
The July 2007 issue updates the following sections with new data: How many businesses are there in Canada?, How many people work for small businesses?, How many jobs do small businesses create?, How much do employees of small businesses earn?, How many people are self-employed?, How has self-employment contributed to job creation? and Do the self-employed work longer hours than employees?.
This issue provides statistics and analysis on VC activity in the first quarter of 2007, including government activities. It includes articles on VC in the Vancouver area and on the new measures in the 2007 federal budget that address the removal of tax barriers to foreign investors in Canadian SMEs.
This profile shows the general characteristics and examines the financing activities of small and medium-sized enterprises (SMEs) in British Columbia in 2004, and compares them with the national averages.
This report was conducted to examine the extent to which Canadian SME exporter firms face difficulty in accessing debt financing from commercial lenders compared to non-exporters. The results show that commercial lenders reject applications for operating loans from early-stage SME exporters at a rate more than four times that of the rejection rate for established firms.
Using five companies as case studies, the report on Case Studies of Collaborative Innovation in Canadian Small Firms provides insights into new policy directions regarding university-private sector collaboration on research and development and commercialization.
This year-end issue examines the venture capital (VC) activity in Canada during 2006 as well as the fourth quarter trends (October to December). This issue also examines the potential of institutional investors as a source of VC and the "In Focus" article discusses New Brunswick's recent initiatives to boost its capital markets.
The January 2007 issue updates the following sections with new data: How many businesses are there in Canada?, How many jobs do small businesses create?, What is the contribution of small businesses to Canada's Gross Domestic Product?, How many people are self-employed? and How many small businesses use e-business?.
2006
This issue provides statistics and analysis on VC activity in the third quarter of 2006, including government activities. It includes articles on VC in the Ottawa area and on the impact on firms of syndicated VC deals.
(Special Edition: Key Small Business Statistics)
The publications presents various statistics on the financing of Canadian small and medium-sized enterprises; these include the credit request and approval rate, the average value of loan requests and the intended use of financing. Some statistics are presented according to the demographic characteristics of the owners (e.g., women, visible minorities), by province, industry and by firm size.
This report identifies ways of improving institutional investor awareness of and allocations to the Private Equity asset class.
This fourth phase of the Growth Firms Project of Industry Canada's Small Business Branch examines job creation and firm turnover at the national level over the 1993-2003 period and compares the results with earlier findings that covered the 1985 to 1999 period.
The aim of this study is to investigate in detail the proposition often found in the literature that small businesses train their employees less than medium-sized and large businesses.
This profile looks at small and medium-sized enterprises (SMEs) that received financing for risk capital through the informal marketplace in Canada. This article examines the differences between these two types of investors and the impact of their investments on SMEs.
This article presents a profile of Canadian SMEs that exported in 2004. The profile examines the distinguishing features of SME exporters and their financing needs, and provides insight into the differences between exporters in the manufacturing and service sectors.
The July 2006 issue adds new data on business survival rates and updates key sections, including innovation levels of small businesses relative to large businesses, job-creation performance, and the number of self-employed workers in Canada.
This profile on HGSMEs presents key characteristics, financing patterns and potential financial barriers for these high-performing firms.
Phoenix Strategic Perspectives Inc. facilitated a series of four workshops with small business advisors. These workshops provided SBB with face-to-face contact with members of the business community to obtain feedback appropriate to a decision on whether or not to proceed with the development of a management competency tool.
This report develops a working definition of "Global Gazelles" and analyzes financing issues faced by such firms.
This profile provides a portrait of Canada's young entrepreneurs and examines the effect, if any, of the age of the owner on financing a small business.
The January 2006 issue updates data found in previous editions, removes outdated text and contains some new content. The following sections have been updated with new data: How many businesses are there in Canada?, How many jobs do small businesses create?, What is the contribution of small businesses to Canada's Gross Domestic Product?, Do small businesses innovate as much as large firms? and How many small businesses use e-business?.
2005
As part of the multi-year Growth Firms Project, the Small Business Branch investigated the job creation performance of exporters in the most recent phase of work. Results from tabulations covering 1993 to 2002 demonstrate that firms engaged in exporting were much more likely to be hyper or strong growth firms than those that did not export.
This study is part of an international study being led by the Centre for Economic and Business Research in the Danish Ministry of Economic and Business Affairs on behalf of the International Consortium on Dynamic Benchmarking of Entrepreneurship. Up to eight countries will be participating in the study, each focusing on an in-depth examination of a successful region in their country.
(Special Edition: Key Small Business Statistics)
The publications presents various statistics on the financing of Canadian small and medium-sized enterprises; these include the credit request and approval rate, the average value of loan requests and the intended use of financing. Some statistics are presented according to the demographic characteristics of the owners (e.g., women, visible minorities), by province, industry and by firm size.
This paper uses the Exporter Registry data to construct a profile of small business exporters that establishes new baseline information and provides a basis for policy development to better foster small business exports.
The July 2005 issue includes information on the number of small businesses in Canada; the number of employees that work for small businesses; the number of self-employed persons and the number of firms that enter and exit. New information has been added on: The number of women entrepreneurs; The contribution of small businesses to Canada's exports; and The contribution of small businesses to employment creation by growth firms.
This article provides a portrait of visible minority entrepreneurs. It examines whether and how financing a small business is affected by the ethnicity of its owner.
This report examines early-stage activity in Canada and Ontario since 1996, using statistics extracted from Macdonald & Associates' database and comparative U.S. data; coupled with the insights of senior venture capital (VC) professionals obtained in interviews conducted over the period December 2004–January 2005.
This report estimates the flow and potential stock of capital available for informal investment from respondents to the Survey on Financing of Small and Medium Enterprises, 2001. The work also reports on ways in which these data have improved, and can potentially improve, our understanding of the flow and stock of financing beyond the estimates available in the literature.
This report presents a synopsis of the research and recommendations stemming from Sustaining the Momentum: An Economic Forum on Women Entrepreneurs. The Forum took place in Ottawa from October 27 to 29, 2004. Its objectives were to share leading-edge research about women entrepreneurs; to examine government support for women business owners and; to identify gaps in research and public policy.
The January 2005 issue includes four new questions: What is the contribution of small business to Canada's exports?, What sources of financing are used by SMEs at different stages of development?, How many SMEs request debt financing? and Who are the key suppliers of debt financing to SMEs?.
2004
This paper, which is a summary of a longer document, also provides information on exports by size of firm across provinces, industry and export destination, as well as a comparison with U.S. exporting firms.
This profile describes the financing activities of small and medium-sized enterprises (SMEs) majority-owned by women in Canada. General business characteristics and financial growth performances are compared with SMEs majority-owned by men to highlight past and current gender differences.
This project aims to improve our understanding of the dynamics of economic growth using a firm-level longitudinal database to investigate which types of firms provide growth, their contribution to job creation, the barriers to growth and the areas where governments can make a contribution.
Phase II of the Growth Firms project builds on the work done in Phase I by completing additional tabulations. The work in Phase II focussed on employment growth by firm age, the growth of start-ups and firm exits.
This report explores the role of institutional investors (i.e. corporate and public sector pensions, insurance companies, endowments and foundations, and so forth) in Canada and the U.S.
This report provides a realistic assessment of the state of the Canadian VC market and aims to build a common understanding of the Canadian VC market, and foster private and public stakeholder coordination and collaboration to develop sound policies that will address key outstanding issues and gaps in the market.
The April 2004 issue updates the information of the May 2003 issue (revised September 2003) with the most recent data available, including data on job creation by firm size in the private sector economy.
2003
This pilot study reports on two relatively unexplored aspects of firm performance: the roles of management competencies and owners' perceptions about success. The research is a pilot test of a Management Competency Index, a diagnostic tool that seeks to measure the nature and diversity of managerial skills and knowledge of owners of small and medium-sized enterprises (SMEs).
This report provides a high-level profile of a small number of foreign venture capital (VC) investors, including both those that do and do not invest in Canada, and of Canadian firms financed by foreign and domestic VC funding.
The purpose of this document is to delineate the issues surrounding regulatory burden. Such an examination is intended to provide a foundation for further analysis of this issue to support small business policy development.
The Small Business Branch has recently completed the first phase of an analysis of growth firms in Canada. The analysis provides answers to questions about which firms grow, who are the engines of growth and what their impact on creating employment has been.
The May 2003 issue has added four new sections: Do the self-employed work longer hours than employees?, How many small business entrepreneurs are women?, Do small and medium sized enterprises innovate as much as large firms? and How many small businesses use e-business?.
This report offers a complete picture of primary offerings in Canada by operating companies and capital pool companies (CPCs) from 1991 to 2000, based on the identification and analysis of 1891 share issues.
This report aims to index and classify academic and professional research, in French and English, as well as public programs and policies that relate to financing by venture capital; identify the primary researchers and centres of expertise on venture capital in Canada and elsewhere; and contribute to the definition of a specific research agenda on the venture capital market for SMEs.
2002
This study draws on the rich information obtained from the 'Micro-Enterprises, 2000' survey, undertaken by Statistics Canada in collaboration with Industry Canada. The survey targeted owner-founders of micro-businesses in seven industries other than manufacturing that had between one and four employees in 1995 and were still in operation in 1999.
This semi-annual publication provides information on the most frequently asked questions pertaining to small businesses in Canada. Some sections have been updated.
The report provides further analysis and evaluation of the literature review undertaken in Phase 1 in order to identify any business owner characteristic-related barriers to financing that are evident on the basis of existing data; identify data gaps that need to be filled in future data collection, a gap analysis model will be developed depicting any gaps in data available; and recommend data collection methodology to fill identified information gaps.
This report presents a review of the empirical and theoretical literature on market failures, gaps, and imperfections. On the basis of this review, this report advances a series of hypotheses that relate to various perceptions of financing gaps that pertain to SMEs.
The report presents a review of existing literature and examines obstacles to small business financing for various profiles of business owners in Canada, with particular emphasis on discrepancies attributed to gender, youth, Aboriginal, visible minority, and language minority business ownership.
2001
The first edition of the semi-annual publication provides information on the most frequently asked questions pertaining to small businesses in Canada.
This paper presents background on the data collection and coverage of the 'Micro-Enterprises Survey 2000' and it highlights key results.
This report provides information with respect to the characteristics, practices, patterns and perspectives of Canadian informal investors. The work describes the nature of informal investments and identifies key parameters of the investment process, focusing on investors' investment behaviour.
This report documents the types of contributions, beyond the monetary investment itself, made by private investors to businesses in which they invest. It also presents a preliminary investigation of business owners' perceptions of the value of these contributions.
This report develops issues surrounding equity financing for SMEs in Canada through the venture capital, initial public offering (IPO) and post-IPO stages of development.
This paper provides a framework for assessing the business case for small firms regarding the transition from traditional business practices to e-business.
The background to this work stems from Industry Canada's central emphasis in the policy agenda on a strategy to encourage innovation as the engine of growth for productivity and competitiveness in the globalized knowledge-based economy.
The purpose of the survey was to better understand the needs, particularly information needs, attitudes and behaviours of small businesses, including their main sources of information and preferred delivery methods.
2000
It has long been the belief that small business is the engine of economic expansion. The recent increases in self-employment in many developed countries have further reinforced this belief.
This report compares and reconciles Standard Industry Classification (SIC) codes used to define KBIs to the equivalent North American Industrial Classification System (NAICS) codes as a first step towards developing a series of NAICS codes that could be used for defining KBIs more generally.
This report uses Porter's Five Forces Model of Industry Competitiveness to evaluate the status of the angel investment industry. The model details the five competitive forces acting upon the players in an industry — in this case, angels.
This report reviews the public literature regarding the supply of, and demand for, early-stage equity from private (informal) investors.
A technical report presents a discussion of the research techniques employed for a multivariate analysis.
This report reviews the best practices of equity financing alternatives for small and medium-sized enterprises (SMEs) in the United States. The review uncovered a number of programs, policies and processes in place that have allowed the United States to be the world leader in new innovation and entrepreneurial activities.
Fast facts
There are 1.21 million SMEs in Canada that have employees.
Source: Key Small Business Statistics
98% of businesses in Canada have fewer than 100 employees.
Source: Key Small Business Statistics
Between 2015 and 2019, on average, 101,324 businesses were created every year and 90,151 disappeared.
Source: Key Small Business Statistics
Private sector SMEs employ over 10 million people in Canada.
Source: Key Small Business Statistics
21% of SMEs operate in goods-producing industries and 79% of SMEs operate in service industries.
Source: Key Small Business Statistics
SMEs were responsible for $246 billion (43%) of Canada's total value of goods exports in 2021.
Source: Key Small Business Statistics
3.4% of firms with 10 employees or more were high-growth firms in 2019.
Source: Key Small Business Statistics
SMEs contributed 50% of Canada's GDP in 2019.
Source: Key Small Business Statistics
12.1% of SMEs exported goods and services in 2020.
Source: 2020 Survey on Financing and Growth of Small and Medium Enterprises
The likelihood of exporting increases with business size.
Source: 2020 Survey on Financing and Growth of Small and Medium Enterprises
The primary decision maker of 47% of SMEs is between 50 and 64 years old.
Source: 2020 Survey on Financing and Growth of Small and Medium Enterprises
16.8% of SMEs were majority-women owned in 2020.
Source: 2020 Survey on Financing and Growth of Small and Medium Enterprises
25% of SMEs are operated by individuals with a bachelor's degree, while 15% are operated by individuals with a master's degree or above.
Source: 2020 Survey on Financing and Growth of Small and Medium Enterprises
28% of SMEs innovated between 2018 and 2020.
Source: 2020 Survey on Financing and Growth of Small and Medium Enterprises
16% of SMEs held intellectual property in 2020.
Source: 2020 Survey on Financing and Growth of Small and Medium Enterprises
82% of SMEs requested external financing in 2020.
Source: 2020 Survey on Financing and Growth of Small and Medium Enterprises
92% of the amount of debt financing requested by SMEs was authorized.
Source: 2020 Survey on Financing and Growth of Small and Medium Enterprises
2% of SMEs imported services from outside Canada.
Source: 2020 Survey on Financing and Growth of Small and Medium Enterprises