Some key takeaways from 2023 Canadian small business statistics and how to leverage them in today’s market
Inked by Blinc
December 17, 2024
In Canada, small businesses are not just the backbone of the economy, they are its lifeblood. They account for 98.1% of all employer businesses, contributing to the country’s overall economic prosperity. The Key Small Business Statistics 2023 report is an essential resource for Canadian entrepreneurs, shedding light on the factors that shape the success of small businesses across the country.
Running a small business is often a balancing act between day-to-day operations and planning future growth opportunities. This is where the insights from national statistics can serve as an excellent guide. The report offers data and with this knowledge, business owners can make smarter decisions, better assess risks, and identify opportunities that align with industry trends.
This report reveals that small businesses are highly concentrated in certain industries. The largest sections are construction (12.7%), professional services (14.3%), and real estate (13.2%). Understanding this can help owners predict competition and opportunities. For example, an entrepreneur looking to start a tech company might find less saturation compared to construction, allowing for more room to innovate and grow.
Small businesses are responsible for employing the majority of Canadians, approximately 67.7%. This statistic not only highlights their economic importance but also shows how much small businesses have as fuel for job creation. This insight is important to remember when applying for government grants aimed at supporting employment in the small business sector.
According to the report, about 65% of new businesses survive for at least 5 years and 43% lasting 10 years+. Understanding this statistic and average survival rates can guide owners toward strategies that improves longevity. Some examples could be diversifying revenue streams, adopting modern technologies, or focusing on customer retention.
One of the recurring challenges faced by small businesses is securing the capital needed for growth. Statistics show that financial institutions are the dominant source of financing for small businesses. Entrepreneurs can use this data to develop a business plan which attracts investors and/or qualifies them for loans.
The Key Small Business Statistics 2023 report is not just a collection of numbers; it’s a strategic tool that can push Canadian owners to make better and more informed decisions. By comparing your business performance to nation-wide averages, one can set realistic targets and uniquely measure success.
Being proactive rather than reactive can offer a competitive advantage to the game. When it comes to business, knowledge is power and for Canadian small business owners, statistics is the fuel that drives it.
