I've put together these Canadian small business statistics from various sources to answer people's common questions about small businesses in Canada. You can use them for market research or reports if you like, as long as you properly cite the sources.
These are the freshest Canadian small business statistics as far as I know. If you find others on these topics that are newer and freely accessible, do let me know.
The Impact of Canadian Small Business on the Economy
Key Small Business Statistics – July 2008, Statistics Canada
Over the 1997 to 2007 period, small firms accounted for 37 percent of all jobs created, on average, in the private sector.
Key Small Business Statistics – July 2008, Statistics Canada
According to Statistics Canada's Survey of Employment, Payrolls and Hours (SEPH), on average in 2007, just over 5.1 million employees on payroll, or 48 percent of the total private sector labour force, worked for small enterprises (those with fewer than 100 employees). More than 1.7 million, or 16 percent, worked for medium-sized enterprises (those with 100 to 499 employees). In total, therefore, SMEs employed just over 6.8 million, or 64 percent, of private sector employees covered by SEPH.
Key Small Business Statistics – July 2008, Statistics Canada
Small businesses account for over two thirds of employment in five industries: the (non-institutional) health care sector (89 percent), the construction industry (76 percent), other services (73 percent), accommodation and food (67 percent), and forestry (67 percent). In three other industries, at least half of the workforce is employed by small businesses.
Industries that had the largest number of employees working for small firms were, in order of magnitude, retail trade (0.80 million), accommodation and food (0.69 million), manufacturing (0.60 million), construction (0.59 million), professional services (0.43 million) and wholesale trade (0.40 million). These industries alone accounted for 68 percent of all jobs in small firms in Canada.
Key Small Business Statistics – July 2008, Statistics Canada
It is estimated that, in 2006, small businesses accounted for approximately 23 percent of Canada's GDP. The percentage varies from a low of 15 percent in Newfoundland and Labrador to a high of 27 percent in British Columbia and Prince Edward Island.
Note: This page has a table that shows the percentage of small business' contribution to GDP for Canada and each province from 1993 to 2006.
"Over 30 per cent of Canadians now either run or work for a small business with fewer than 50 employees and we are seeing that number increase every year."
-Michelle Field, Vice President, Business Banking, BMO Bank of Montreal (in a BMO Financial Group Press Release, October 2005).
"Between 80 percent and 90 percent of all companies in Canada are small to medium-size businesses. They generate nearly half of the country's GDP and are responsible for six million jobs."
- Bill Downe, Deputy Chair, BMO Financial Group and CEO of BMO Nesbitt Burns. (PR Direct – A Division of The Canadian Press.) Mr. Downe was addressing the Rotary Club in St. John, July 11, 2005.
Statistics on What Canadian Small Businesses Are Like
Key Small Business Statistics – July 2008, Statistics Canada
"Of the 1.077,047 employer businesses, 2904 or about 0.3 percent have 500 employees or more. The vast majority of employer businesses (98 percent) have fewer than 100 employees, 75 percent have fewer than 10 employees and 55 percent have only 1 to 4 employees."
Key Small Business Statistics – July 2008, Statistics Canada
"About one quarter of all business establishments produce goods, whereas the remainder provide services. Small firms (those with fewer than 100 employees) make up 97 percent of goods-producing employer businesses and 98 percent of all service-producing employer businesses. Using an alternative definition of small businesses in the service producing sector that defines small businesses as those with fewer than 50 employees, small firms account for 95 percent of all service-producing employer firms."
Business Edge, Vol. 6, No. 21, 10/13/2006.
"Canada's small-business sector represents the vast majority of Canadian business. According to Statistics Canada, 75 per cent of all businesses employ fewer than five employees and 95 per cent employ fewer than 50. The sector contributes 80 per cent of all new jobs in the economy and generates roughly 43 per cent of Canada's economic output."
"Canada's small biz owners getting greyer", Roma Luciw, Globe and Mail Update, globeandmail.com Business, September 11, 2006.
Benjamin Tal, a senior economist with CIBC and author of its Small Business in Canada report says that more Canadian small business owners than ever are likely to have grey hair and want to keep their small businesses small.
In 2005, Canadians over the age of 55 comprised a record high 25 per cent of the self-employed in Canada, up from 35 per cent in 2001. Seniorpreneurs currently constitute more than 30 per cent of the total work force over the age of 55, and are by far the fastest-growing segment in the small business sector.
"...almost 60 per cent of all small business owners in Canada see themselves as "lifestylers" that use their business as a means of earning an income, while balancing other commitments or lifestyle choices."
"According to Mr. Tal, the desire to balance working with living explains, in part, why Canadian small businesses do not grow in size as fast as their American counterparts."
More Canadian Small Business Statistics
Statistics on How Many Canadian Small Businesses There Are
Statistics on Where Most Canadian Small Businesses Are Located
Statistics on Starting a Small Business in Canada
Statistics on What It's Like to Be a Canadian Small Business Owner
Statistics on Canadian Women in Business
More Small Business Statistics on Canadian Women in Business
