Business growth

Cover: The Contribution to Canadian Net Employment Change by High-Growth Firms, December 2017
The Contribution to Canadian Net Employment Change by High-Growth Firms

The main purpose of this paper is to present accurate data on the total net employment change for high-growth firms in Canada over the 2009–12 period, in relation to dimensions such as firm age, firm size and industry sector.

Cover of Comparing Different Measures of High-Growth Enterprises: A Canadian Case Study report
Comparing Measures of High-Growth Enterprises: A Canadian Case Study

This methodological study compares three measures of High-Growth Enterprises (HGEs). Specifically the authors have developed a new definition of HGEs, the Top Decile Approach, and have compared it to two different approaches widely used, the OECD-Eurostat and the U.S. Bureau of Labor Statistics Kink Point.

Cover of the Growth or Profitability First report
Growth or Profitability First?: The Case of Small and Medium-Sized Enterprises in Canada

This study examine the relationship between a firm's growth and profitability for the period from 2006 to 2011. Among others, the study shows that human capital is a determining factor as it plays a positive role in a firm achieving superior performance in both growth and profitability.

Cover of the Small and Medium-Sized Entreprises Growth Study: Actual vs. Sustainable Growth report
Small and Medium-Sized Entreprises Growth Study: Actual vs. Sustainable Growth

This report seeks to identify any misalignment between SME actual growth rates and SME sustainable growth rates. Using the "Higgins Sustainable Growth Model," the analysis reveals that, over the 2000–10 period, Canadian SMEs had the financial infrastructure in place and normal earnings capacity to support a rate of growth in sales of approximately 7.3 percent per year without the need to raise additional financing.

Cover of the Growth Map Canadian Firms publication
Growth Map of Canadian Firms
(Special edition of Key Small Business Statistics)

This publication examines the distribution of all Canadian firms according to their growth rate (positive or negative) in terms of employment and revenue. An analysis by firm size and industry, as well as employment created and revenue generated by firms is also included. The section on the number of businesses in Canada has been updated.

Cover of the Profile of Growth Firms: A Summary of Industry Canada Research report
Profile of Growth Firms: A Summary of Industry Canada Research—Archived

The 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.

Cover of The Growth Process in Firms: Job Creation by Firm Age report
The Growth Process in Firms: Job Creation by Firm Age—Archived

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.

Cover of the Growth Firms Workshop Synopsis report
Growth Firms Workshop Synopsis—Archived

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.

Cover of the Growth Firms Project: Phase II report
Growth Firms Project: Phase II Report—Archived

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.

Cover of the Growth Firms Project: Key Findings report
Growth Firms Project: Key Findings—Archived

The Small Business Branch has 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.

Fast facts

There are 1.2 million SMEs in Canada that have employees.

Source: Key Small Business Statistics

98 percent of businesses in Canada have fewer than 100 employees.

Source: Key Small Business Statistics

Over 78,000 new SMEs were created in Canada in 2013.

Source: Key Small Business Statistics

Over 10 million people in Canada work for a SMEs.

Source: Key Small Business Statistics

22 percent of SMEs operate in goods-producing industries. 78 percent of SMEs operate in service industries.

Source: Key Small Business Statistics

11.8 percent of SMEs exported goods and services in 2014

Source: Key Small Business Statistics

SMEs were responsible for $106 billion (25 percent) of Canada's total value, of exports in 2013.

Source: Key Small Business Statistics

Export intensity (percentage of revenues derived from exporting) falls as firms get larger.

Source: Canadian Small Business Exporters, Special Edition: Key Small Business Statistics

SMEs contribute 39 percent to Canada's GDP in 2008.

Source: Statistics Canada

Since 2011, more SMEs are died than born every year.

Source: Statistics Canada, Entrepreneurship Indicators Database.

The likelihood of exporting increases with business size.

Source: 2014 Survey on Financing and Growth of Small and Medium Enterprises

48 percent of all SME owners are between 50 and 64 years old.

Source: 2014 Survey on Financing and Growth of Small and Medium Enterprises

15.7 percent of SMEs were majority-female owned in 2014.

Source: 2014 Survey on Financing and Growth of Small and Medium Enterprises

24 percent of SME owners have a bachelor's degree and 14 percent have a master's or above.

Source: 2014 Survey on Financing and Growth of Small and Medium Enterprises

42 percent of SMEs innovated between 2012 and 2014.

Source: 2014 Survey on Financing and Growth of Small and Medium Enterprises

21 percent of SMEs held some type of intellectual property in 2014.

Source: 2014 Survey on Financing and Growth of Small and Medium Enterprises

Only 51 percent of SMEs requested external financing in 2014.

Source: 2014 Survey on Financing and Growth of Small and Medium Enterprises

About 86 percent of the amount of debt financing requested by SMEs was authorized.

Source: 2014 Survey on Financing and Growth of Small and Medium Enterprises

26 percent of SMEs imported goods or services in 2011.

Source: 2011 Survey on Financing and Growth of Small and Medium Enterprises

3.2 percent of SMEs outsourced business activities from outside of Canada.

Source: 2011 Survey on Financing and Growth of Small and Medium Enterprises

3 hours per month is the average time spent by an SME complying with government regulations.

Source: SME Regulatory Compliance Cost Report–September 2013

The cost of regulatory compliance fell from 0.81 percent of SME GDP in 2005 to 0.75 percent in 2011.

Source: SME Regulatory Compliance Cost Report–September 2013

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