Establishments
Professional, Scientific and Technical Services (NAICS 54)

Under this topic you will find information on the number, size and location in the Professional, Scientific and Technical Services (NAICS 54) sector. You can use this information to assess the existing level of competition within the subsector in your province.

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Establishments by Employment Type and Region

The data presented under this heading come from Statistics Canada's Canadian Business Patterns Database which offers statistical information based on the Business Register. The counts were taken in December 2011.

Some establishments do not employ any individuals, and in some cases the employment type of an establishment cannot be determined (indeterminate). Non-employers are in effect owner operated and the owners do not pay wages or salaries to themselves as an employee of the company. Even though some establishments do not maintain employee payrolls, they may have work forces, which may consist of contracted workers, part-time employees, family members or business owners.

The table below shows the breakdown between employer and non-employer or indeterminate establishments for each province and territory as well as a percentage distribution at the national level. For the Professional, Scientific and Technical Services sector, 61.0% of establishments are non-employers or indeterminate and 39.0% have one or more employees.

Number of Establishments in Canada by Type and Region: December 2011
Professional, Scientific and Technical Services (NAICS 54)

Province or Territory	Employers	Non-Employers/ Indeterminate	Total	% of Canada
Source: Statistics Canada, Canadian Business Patterns Database, December 2011.
Alberta	22,695	31,955	54,650	17.1%
British Columbia	19,753	28,869	48,622	15.2%
Manitoba	2,523	3,308	5,831	1.8%
New Brunswick	1,683	1,741	3,424	1.1%
Newfoundland and Labrador	1,053	944	1,997	0.6%
Northwest Territories	126	138	264	0.1%
Nova Scotia	2,062	2,940	5,002	1.6%
Nunavut	28	51	79	0.0%
Ontario	49,967	84,183	134,150	42.0%
Prince Edward Island	329	317	646	0.2%
Quebec	22,872	36,058	58,930	18.4%
Saskatchewan	2,385	3,285	5,670	1.8%
Yukon Territories	134	195	329	0.1%
CANADA	125,610	193,984	319,594	100%
Percent Distribution	39.3%	60.7%	100%

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Establishments by Employment Size Category and Region

The data presented under this heading come from Statistics Canada's Canadian Business Patterns Database which offers statistical information based on the Business Register. The counts were taken in December 2011.

The size of a business can be defined in many ways, for example by the value of its annual sales, its annual gross or net revenue, the value of its assets, or by the number of people it employs. In this section a definition based on the number of employees is used.

Establishments are considered micro if they employ fewer than 5 people. Above this threshold, a goods-producing firm is considered small if it has fewer than 100 employees, above that size, and up to 499 employees, a firm is considered medium-sized. The term SME (for small and medium enterprises) is used to refer to all establishments under the large cut-off of 500 employees. For more details, see information on Key Small Business Statistics.

The table below indicates the number of employer establishments by employment size category and by province or territory in the Professional, Scientific and Technical Services sector.

Number of Employer Establishments in Canada
By Employment Size Category and Region: December 2011
Professional, Scientific and Technical Services (NAICS 54)

Province or Territory	Employment Size Category (Number of employees)
	Micro 1-4	Small 5-99	Medium 100-499	Large 500+
Source: Statistics Canada, Canadian Business Patterns Database, December 2011.
Alberta	18,480	4,072	126	17
British Columbia	14,958	4,661	119	15
Manitoba	1,741	758	23	1
New Brunswick	1,209	457	16	1
Newfoundland and Labrador	706	334	13	2
Northwest Territories	75	49	2	0
Nova Scotia	1,439	602	21	0
Nunavut	17	11	0	0
Ontario	37,864	11,660	392	51
Prince Edward Island	206	121	2	0
Quebec	15,929	6,704	207	32
Saskatchewan	1,699	670	15	1
Yukon Territory	95	39	0	0
CANADA	94,418	30,138	936	118
Percent Distribution	75.2%	24.0%	0.8%	0.1%

In 2011, the breakdown of employer establishments in the Professional, Scientific and Technical Services sector was as follows: 75.2% of them were considered micro, employing less than five employees. Small establishments accounted for 24.0% and medium-sized establishments accounted for an additional 0.8% of the total number of establishments. Large employers, those with more than five hundred persons on payroll, accounted for 0.1% of the total establishments in the Professional, Scientific and Technical Services sector.

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Changes in Establishment Counts

Establishment counts change primarily due to the net effect of business entries into and exits from the economy. Other factors can also influence these counts.

An establishment is placed into a NAICS category according to its primary business activity - the product whose revenues are the highest in terms of dollar value. If an establishment produces more than one product or service and these activities cross over NAICS boundaries then an establishment could move from one NAICS code to another, diminishing numbers attributed to one code and augmenting another. For example, an establishment could be making steel and plastic auto parts, and the NAICS code to which it is assigned would depend on which product accounts for the largest share of its revenues in a specific year.

Finally, the number of establishments can be affected by methodological changes, i.e. changes in the method of identifying inactive units. This may lead to false interpretation of the economy behavior and this is why Statistics Canada does not recommend using the Canadian Business Patterns data for longitudinal analysis.

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Understanding Business Establishments and Enterprises

For statistical reporting purposes, different types of business entities are recognized, e.g. the enterprise and the establishment. This section deals exclusively with the establishment which is generally in a single location producing a limited range of products.

The establishment, as a statistical unit used in business surveys, is defined as the most homogeneous unit of production for which the business maintains accounting records from which it is possible to compile data on the inputs used in the production process (cost of materials and services, labour and capital) and the gross value of production (total sales, revenues and inventories).

The activity of an establishment can be described in terms of what is produced (the type of goods and services produced) or how they are produced (the raw material and service inputs used and the process of production or the skills and technology used).

Depending on the sector, establishments are referred to by a variety of trade designations. For instance, in the Manufacturing Sector, the establishment generally corresponds to a plant, mill or factory; while in the case of the Wholesale Trade sector, there is a distinction between what are commonly known as agents and brokers on the one hand, and wholesale merchants on the other.

In the sectors dealing with construction, transportation and communications, activities tend to be dispersed. The individual sites, projects, fields, networks, lines or systems of such activities are not normally treated as establishments. The establishment is represented by those relatively permanent main or branch offices, terminals, stations, etc. that are either:

• directly responsible for supervising such activities, or
• the base from which personnel operate to carry out these activities.

In contrast, an enterprise, as a statistical unit in business surveys, is defined as the organisational unit of a business that directs and controls the allocation of resources relating to its domestic operations, and for which consolidated financial and balance sheet accounts are maintained from which international transactions, an international investment position and a consolidated financial position for the unit can be derived.

In the case of most small and medium sized businesses in Canada, the enterprise and the establishment are identical. Large and complex enterprises, consisting of more than one establishment, may belong to more than one NAICS industry.