Adaption, Agility, All At Once.
On January 29, the Canadian Chamber of Commerce Business Data Lab released its latest report in collaboration with Amazon Canada, highlighting the new reality for small businesses in Canada’s post-pandemic retail landscape. A Portrait of Small Business in Canada: Adaption, Agility, All At Once explores the crucial role small businesses play in Canada’s economy and provides insight into how these businesses can thrive even as major economic forces work against them.
While 98% of Canadian businesses have traditionally qualified as small businesses, the report goes further in revealing that micro firms (1-4 employees) are by far the most common business type in Canada, with the median firm having fewer than five employees. This emphasizes the need for a deeper understanding of the business realities of all small firms, but especially micro firms.1
Key messages in this report:
- The overwhelming majority of businesses in Canada are small (1-99 employees)
- 'Small' are micro businesses (1-4), scale businesses (5-19), and mature businesses (20-99)
- There are more small businesses per capita in western Canada and on the coasts
- Small businesses are most common in professional services, construction, retail trade, and health care
- Immigrants to Canada are the only equity-seeking group with a more-than-proportional representation of business owners
- Small businesses were hit hardest by unemployment
- Debt constraints are tighter for smaller firms
- Higher interest rates are a key reason young micro and scale companies cannot take on more debt
- Micro and scale firms owned by underrepresented groups reported the highest likelihood of inability to take on debt
Online buying, digital adoption, and research of products/services play factors in online retail shopping statistics. "83% of Canadian retail shoppers reported they conduct online research before they visit a store, and 8% made a purchase online from a retailer with a physical location nearby." With digital adoption comes increased awareness and risk of online security, from cyber security prevention to online collaboration tools.
- Small businesses of all sizes and across all industries reported digital adoption plans
- More than half reported plans to adopt digital technology to move their operations or sales online
- Small businesses reported in higher proportion of investing in artificial intelligence (AI)
Read the complete report: A Portrait of Small Business in Canada.
About the Report's Author: Marwa Abdou, Senior Research Director
Prior to her role at the Canadian Chamber, Marwa worked directly with and within some of the world's most renowned multilateral organizations, private sector organizations and country governments, including the World Bank Group, Commonwealth Secretariat, APEC, OECD, Ernst and Young, Nathan Associates, and the Asian development Bank.
1 The Kelowna Chamber is a member of the Canadian Chamber of Commerce. One of the benefits of this membership is access to a wealth of statistical data and data reporting, such as this report provided by the Business Data Lab.