Text version
In 2023, 27% of Canadian SMEs developed innovations,Footnote 1 with product innovation being the most common (57%) and marketing innovation the least (27%).
Type of innovation |
Percentage of SMEs |
|---|---|
| Product innovation | 57 |
| Organizational innovation | 35 |
| Process innovation | 29 |
| Marketing innovation | 27 |
Approximately 80% of innovative SMEs intended to expand to new markets, 77% adopted at least one advanced technology, 31% held at least one type of intellectual property, 24% were exporting firms, and 18% were involved in international business activity.
| Business strategy | Percentage of SMEs |
|---|---|
| Intention to expand to new markets | 80 |
| Adopted at least one new technology over the last three years | 77 |
| Held at least one type of intellectual property | 31 |
| Exported in 2023 | 24 |
| Involved in international business activity | 18 |
British Columbia and Territories led all regions with the highest percentage of innovative SMEs (31%). In contrast, the Atlantic region had the lowest rates, with 21% of SMEs engaging in innovation.
| Region | Percentage of SMEs |
|---|---|
| British Columbia and Territories | 31 |
| Alberta | 25 |
| Saskatchewan | 21 |
| Manitoba | 24 |
| Ontario | 27 |
| Quebec | 29 |
| Atlantic | 21 |
Larger-sized businesses (100–499 employees) had the highest innovation rate at 46%, compared to 21% for smaller businesses (1–4 employees).
| Business size | Percentage of SMEs |
|---|---|
| 1 to 4 employees | 21 |
| 5 to 19 employees | 34 |
| 20 to 99 employees | 41 |
| 100 to 499 employees | 46 |
The three sectors with the highest rate of innovative SMEs were:
| Industry sector | Percentage of SMEs |
|---|---|
| Manufacturing | 47 |
| Wholesale Trade | 39 |
| Professional, Scientific, and Technical Services | 35 |
Debt (36%) and trade credit (34%) were the most commonly requested financing types amount innovative SMEs, while equity financing remained rare.
| Type of financing | Percentage of SMEs |
|---|---|
| Debt financing | 36 |
| Trade credit financing | 34 |
| Government financing | 13 |
| Lease financing | 10 |
| Equity financing | 3 |
Nearly half (48%) of innovative SMEs saw moderate growth (1–10%), while 12% were high-growth firms (20%+). About 26% reported no growth or decline.
| Average yearly growth in sales between 2021 and 2023 | Percentage of SMEs |
|---|---|
| ≤ 0% | 26 |
| 1–10% | 48 |
| 11–19% | 14 |
| ≥ 20% | 12 |
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Source: Statistics Canada, Survey on Financing and Growth of Small and Medium Enterprises, 2023. |
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