Statistics Canada reports that small businesses (1-19 employees) employ 10.3 million people, representing 63.8% of the total Canadian workforce. (2022 data)
Let that sink in.
Employing more than 3 in 5 Canadians, small businesses are the source of tax revenue, a wide array of products and services, and provide the majority of employment opportunities in the country. Social enterprises are almost all small businesses. They are part of the ballast and sails that keeps our economy—our country—upright and in motion.
For comparison, businesses with over 100 employees only employ 15.1% of the workforce.
Interestingly, there is a keen desire in Canada to be entrepreneurial. According to a 2021 report, half of all Canadians believed they have the skills to start their own business, and a full 23% claimed to have plans to do so. Moreover, Canada has the largest number of early stage entrepreneurs (those with businesses less than 42 months old) per capita than any of the G7 nations, including the US.
Of new businesses started in 2021 in Canada, 58% were started by people aged 34 or younger and 52% offered consumer-oriented products or services.
These statistics are interesting in that they paint a picture of many young Canadians choosing to start their own business. There seems to be an understanding that entrepreneurship offers an opportunity for employment and a meaningful livelihood, even if running a business is difficult.
Another interesting fact about businesses started in 2021: 76% of the entrepreneurs report that their product or service was not new (although it might be new to their geographic region).
Again, pause for a moment to reflect on that.
Most new businesses are NOT innovative, they are simply providing a product or service that consumers already know and which those same consumers are (presumably) willing to buy.
What is the message for social entrepreneurs? First, you are in good company, as you are part of the majority of workers in the country. Second, you are competing with all those other small businesses trying to create and meet demand. Third, you don’t need to create something innovative to create revenue for your mission.
As we start 2025, one can only assume that 2021/22 data will change, given the changing economic and political landscape. However, the findings from the days of early economic recovery suggests (post-pandemic) that more and more young people are looking to take control of their work lives as entrepreneurs, and possibly infuse their personal social mission into their vocation.
We, as Canadians and the governments we elect, need to support this growing desire to build the foundation of our economy with small businesses that seek deliberately to improve the society we live in through their commercial activities.
