Indicators and targets: Scaling-up firms

 Jobs and innovation: Tracking progress and results

Investment, scale-up and clean growth

Target: Double the number of high-growth firms in Canada from 14,000 to 28,000 by 2025

Figure 9.1: High growth firms in Canada (based on revenue growth)

Canada's Innovation and Skills Plan aims to double the number of high-growth, high-impact firms in Canada, from 14,000 in 2014 to 28,000 in 2025. These growth-oriented companies tend to create more high quality jobs for Canadians.

Description of Figure 9.1
High growth firms in Canada (based on revenue growth)
Year Number of high-growth companies

Sources:

  • Statistics Canada, Table 33-10-0143-01 (recent data available upon request to Statistics Canada)
  • Innovation, Science and Economic Development Canada
2011 11,950
2012 11,500
2013 14,280
2014 14,060
2015 14,330
Target
2025 28,000

Figure 9.2: Firm birth and exit rates

The entry of new firms is an important source of productivity growth and technology adoption while exit removes less productive firms. As a result, firm entry and exit are indicators of the dynamism that is essential to a well-functioning economy.

Firm entry and exit rates (which are highly correlated) have been falling since the early 1980s in Canada.

Description of Figure 9.2
Firm birth and exit rates
Year Entry rate (percent) Exit rate (percent)

Sources:

2000 13.1%
2001 14.0% 12.8%
2002 13.9% 12.6%
2003 13.9% 12.3%
2004 15.2% 12.3%
2005 14.7% 12.8%
2006 14.3% 12.0%
2007 14.9% 12.3%
2008 14.2% 12.4%
2009 13.1% 11.8%
2010 13.1% 11.6%
2011 13.0% 11.6%
2012 12.9% 11.6%
2013 12.5% 11.4%
2014 12.5% 11.4%
2015 12.2% 12.2%
2016 12.2% 11.7%
2017 13.0% 11.7%

Figure 9.3: Total Early Stage Entrepreneurial Activity (2001-11)

Total early-stage entrepreneurial activity reflects the percentage of a country's working-age population that is involved in either preparing to start a business, or operating a business that is less than 5 years old. Canada's start-up rateFootnote * is relatively low (16%) by international comparison.

Description of Figure 9.3
Total Early Stage Entrepreneurial Activity (2001-11)
Countries Start-up rates

Sources:

BRA 40%
ESP 28%
FRA 24%
HUN 22%
GBR 21%
LUX 21%
NLD 20%
AUT 20%
NZL 20%
USA 19%
PRT 18%
SWE 18%
CAN 16%
BEL 16%
NOR 14%
ITA 12%
FIN 9%
JPN 6%

Figure 9.4: Age composition of small firmsFootnote * (2001-2011)

Canada has a greater number of mature small firms relative to other countries, with more than half of all small firms older than 5 years.

Description of Figure 9.4
Age composition of small firms (2001-2011)
Countries Young (0-5 years) Mature (>5 years)

Sources:

BRA 65.6% 35.7%
ESP 46.0% 54.0%
HUN 43.6% 56.5%
GBR 40.5% 59.4%
FRA 40.4% 59.5%
NZL 40.4% 59.6%
LUX 40.2% 59.8%
NLD 38.0% 61.9%
AUT 37.9% 62.1%
USA 37.2% 62.7%
CAN 34.2% 65.8%
PRT 33.5% 66.4%
SWE 33.3% 66.7%
NOR 31.7% 68.3%
BEL 31.1% 68.8%
ITA 28.0% 72.0%
FIN 22.9% 77.1%
JPN 13.9% 86.1%

Figure 9.5: Start-up Ecosystems in Global Top 20 (2017)

Canada had two cities (Vancouver and Toronto) ranked among the top 20 in Startup Genome's 2017 Global Startup Ecosystem. Cities such as Montreal, Ottawa and Quebec City were also highlighted for their potential.

Start-up Ecosystems in Global Top 20 (2017)
City Rank (2017) Change since previous survey

Sources:

Silicon Valley 1
New York 2
London 3 3
Beijing 4 NEW
Boston 5 -1
Tel Aviv 6 -1
Berlin 7 2
Shanghai 8 NEW
Los Angeles 9 -6
Seattle 10 -2
Paris 11
Singapore 12 -2
Austin 13
Stockholm 14 NEW
Vancouver 15 3
Toronto 16 1
Sydney 17 -1
Chicago 18 -11
Amsterdam 19
Bangalore 20 -5

Figure 9.6: Ease of Doing Business Index (2018)

Canada moved up four places since 2017 to rank 18th on the World Bank's Ease of Doing Business Index (2018). More specifically, Canada ranked 2nd out of 190 counties on starting a business.

Ease of Doing Business Index (2018)
Rank (2018) Change from last year

Sources:

Canada (Global Rank) 18 +4
Starting a business 2
Dealing with construction permits 54 +3
Getting electricity 105 +3
Registering property 33 +10
Getting credit 12 -5
Protecting minority investors 8 -1
Paying taxes 16 +1
Trading across borders 46
Enforcing contracts 114 -2
Resolving insolvency 11 +4
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