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The Valley Echo Wednesday, October 10, 2012

www.invermerevalleyecho.com A13

Small Business Week October 14 - 20, 2012

Aim High! Invest in your future.

Buy local and support small business.


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Wednesday, October 10, 2012 The Valley Echo

Small Business Week Celebrating small business

October 14 - 20, 2012

Support small business: shop local NICOLE TRIGG editor@invermerevalleyecho.com

DAVE HAMILTON Black Press Publisher

October 1st lauched another start of Small Business Month across British Columbia. The month long event is intended to celebrate and recognize the contribution of small businesses to the B.C. economy and our local communities. With one out of 10 people living in B.C. being self employed, the celebration of small business month has become a wide celebrated event. Over 98 per cent (more than 400,000) of Businesses in B.C. have less than 50 employees and 82 per cent (over 325,800) of businesses are micro- busineses which have less then 4 employees. The largest B.C. small business sector is business services with over 21 per cent being represented with almost 15 per cent in construction. In B.C., over a million jobs are derived from small business accounting for over 46 per cent of the total employement in the Province well above large businesses with 35 per cent and the public sector with 18 per cent.

Local businesses are the backbone of thiriving communtiies, but they can’t stay in business without support. Here are six reasons to make the switch to shopping locally: 1. Stimulate your local economy: Locally-owned businesses often purchase from other local businesses and service providers so Purchasing local helps grow other businesses as well as the local tax base. Shopping local also creates jobs, and these employees in turn spend in the local economy. 2. Support the businesses that make your community unique: The unique character of your local community is defined in large part by the business that reside there, which contributes to your overall satisfaction with where you live and the value

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of your home and property. 3.  Save time and money: Shopping locally saves you time and money because you travel less, saving on time and fuel. 4. Environmental impact is reduced: Less commuting, less pollution. 5. Customer service is personalized: Local busi-

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nesses tend to hire people with superior product knowledge, plus local business owners and employees know they will be seeing you around in the community, so customer service is that much better. 6. Community investment: Local businesses are owned by people who live in

the community, so they  are less likely to leave, and are more invested in the community’s welfare and future. Six ways to start shopping locally: Go to a local coffee shop a couple of times a month; purchase an outfit twice a year from a local boutique instead of a large chain store; visit your local bookstore every couple of months to get a new book rather than buy one online; buy a piece of art for your home from a local art gallery; browse local stores for gifts to give as birthday presents; and next time you dine out, choose a locally-owned restaurant. Shopping local doesn’t mean you can’t ever visit a big box store or shop online again, but by making more of your purchases at local indepedant businesses, you will make a big differene in your own community. Remember: a little support goes a long way!

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The Valley Echo Wednesday, October 10, 2012

www.invermerevalleyecho.com A15

Small Business Week

October 14 - 20, 2012

Small business is a big deal to local shopkeepers NICOLE TRIGG editor@invermerevalleyecho.com

After Beva Kirk started keeping track of local shoppers, it came as a surprise when she learned exactly how many of them made up her customer base over a three week period — just seven per cent. "We get a lot of people asking for (community group) donations and it kind of dawned on me that... they never shop here," said Kirk, who coowns Crazy Soles, the running and yoga store in Invermere, with her husband Jordie. So she decided that for every 12 locals who made a purchase in her store, she would donate one prize to a Rockies home game, and started a list of names. "I want to support local and all of these community events, and especially kids in sports," Kirk said. "I think what I'll do is keep this going, just because it's been interesting. A huge percentage of her customers come from Alberta, she said, and, in the last few weeks, there's been a big influx from the United States. "I don't think there is any business in Invermere that isn't on par with prices in Calgary, but there seems to be an illusion that we do charge more and I think that's false," Kirk said. "I think the factor is there's a little bit more tax here... but people continue to shop in B.C. from Alberta, I mean that's a

Beva Kirk , Crazy Soles

big percentage shopping here, so I think that perception needs to change among our locals." Another incentive Kirk offers to locals is a 10 per cent discount to anyone who is a member of the Columbia Valley Cycling Society or the local nordic club. "It would be nice to see more (people on the list)," she said. While Elita Bentley doesn't have an offical locals' discount, she will discount ten per cent when she notices a local is frequently shopping in her store, Be Gifted, in downtown Invermere. "I think one challenge for local shoppers is our streets roll up at 5 p.m. so when you work here, it's really difficult to shop local when you're working most days," Bentley said. "We as retailers have the challenge of trying to find a way to be open a little bit later but that's really tough because then you have the expense of your staff staying open." With most local shopkeepers already working

over 40 hours a week, encouraging them to stay open late is another challenge, she said. "It's kind of a Catch-22, I think, that our town is experiencing." The benefit Bentley sees in shopping locally is that you deal with people who understand their products really well, and who are on hand to offer immediate help. "I think this is an amazing small town; we're really really lucky here that because of the tourism we're able to have this incredibly vibrant downtown core with quite an amazing selection of products (and) fairly fair pricing," she said. "If we didn't have that tourism industry, we'd be another onehorse blink-you-miss-it town with a grocery store, a post office and a few cafes, that would be it. "I think a lot of times, as a local I forget and I take it for granted that we have this here and always expect it to be here but if it doesn't get support, it can't be here, it can't exist be-

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cause shopkeepers need to make a living, too." James Lazarus is pleased with the strong local support he sees for The Book Bar, Invermere's book store which he co-owns with Joshua Foy, but said that because the town is so seasonal, he sees a swing from one end of the spectrum to the other in just a matter of months. "It's tough during the slow season," he said. "When it's great it's great, when it's slow, it's slow; there's a real ebb and flow here from one extreme to the other." While Lazarus isn't convinced that online retailers necessarily affect his business, he does believe more exposure is needed. "I've heard it in the past where people have been driving right up to Panorama to go skiing for the last ten years and never even know that Invermere was here," he said.

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Wednesday, October 10, 2012 The Valley Echo

Small Business Week

October 14 - 20, 2012

How to groom your website for growth Making the most of your online efforts Imagine you own a shoe store. It’s in a busy shopping mall and has an inviting storefront with an attractive sign and window displays. You’re almost guaranteed traffic — and probably sales, too, if you’ve got halfway decent products and prices. Now picture that same shoe store on an out-of-the way country road with a grimy window and a crooked sign. It doesn’t matter how great your footwear is. You probably won’t have enough customers to stay in business. Now ask yourself which of those two stores most resembles your company’s website. In today’s business world, your website is like your storefront. It could be the main way customers are finding you and forming an impression about you. A properly designed site is especially important if your business is growing and you are trying to improve your profile. But many small businesses don’t devote a lot of effort to optimizing their site to ensure it’s easily found via internet search engines and geared to help make sales. Sites need improvement “A well-designed site can help your company compete effectively with businesses that have deeper pockets and larger marketing budgets,” says Michel Bergeron, Senior Vice President, Marketing and Public Affairs at the Business Development Bank of Canada. Ranking high in search engine results is vital for your visibility online, Bergeron says. People rarely venture beyond the first page of a Google search result. Indeed, research indicates that websites appearing on the first page attract 90 per cent of the traffic. Having a poorly optimized website can be a problem even if most of your sales don’t happen over the Internet, says

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happy customers, and contact information is easy to find at the top of the page. The site also ranks phenomenally well in Google searches—showing up on the first page out of 150 million results for the term “magic shows.” A paid ad for Philip & Henry is the top result in a search for “magician.” Murad credits years of experimentation with search engine optimization — the art of getting search engines like Google to rank your site near the top. He sprinkles his content with a few dozen keywords that describe his business and help him stand out from the competition. He also works hard on attracting links to his site. That’s because such links are one of the main ways Google uses to determine search engine rankings. The more links to your site, the higher you’ll usually rank. “There’s a saying: ‘Content is king and links are queen,’” Murad says. “The more people talk about you and share your content on Facebook, social sites and YouTube, the more it improves

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Mark Evans, a leading Canadian digital marketing and startup consultant. “The Internet is the way most people discover new products and services.” Happily, small businesses can use simple, inexpensive tools to help level the playing field with large businesses, Evans says. “A small, agile, creative company can be as effective online as a big company.” Philip Murad has found a way to turn his website into a gold mine for his fast-growing business, Philip & Henry, which books magic shows for a network of magicians across North America. Murad’s website accounts for threequarters of his sales, which have been growing up to 30% annually for the past decade. Clean, simple layout Visitors to Murad’s site are greeted with a clean, simple layout that’s easy to navigate without a lot of scrolling or clicking. The site prominently displays links allowing them to get a price quote or book a show in their area. There’s also a short YouTube video featuring

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your ranking.” All his online efforts have paid off with a payback higher than for any other kind of marketing, he says — worth up to $100 in returns for each $1 in costs for his best-yielding campaigns. “If there was no Internet, we’d be finished. It’s huge for my business—absolutely huge.” Internet Marketing 101 Do you have a business website but not sure if it’s doing your bottom line any favours? Keep these tips in mind. Plan — Your online efforts should be guided by an online strategy that’s aligned with your overall business strategy, especially if you’re in growth mode. It should spell out your online goals (whether that’s making sales, generating leads or boosting your brand), your target audience and key messages. All this should guide the design of your website and social media properties— and the content on them. Keywords — Make a list of 20 to 50 keywords that you think potential customers will use in Internet searches to find your services. Choose terms that help you stand out, and sprinkle them through your site and social content. Social media and links — Search engine optimization means not only ranking well on Google, but also on social media sites. Post compelling and informative social content that visitors are likely to share. The more your site gets talked about and linked to elsewhere on the web, the higher you’ll rank in search results. Website design — Visitors shouldn’t have to scroll or click a lot to find what they need. Prominently display your contact info and a call to action. Measure — Monitor your online efforts to see what’s working and what’s not. Then adjust. Free tools like Google Analytics can help.


The Valley Echo Wednesday, October 10, 2012

www.invermerevalleyecho.com A17

Small Business Week Accelerating the success of smart business October 14 - 20, 2012

Mentoring is critical for entrepreneurs Do you have an idea for a startup business? Or a new idea for growth in your existing business? Wondering how to get started? Whether you're in a high-tech or traditional sector, a few common tips can help: find mentors, move quickly and develop a winning pitch. These tips come from the techniques used in business accelerator programs. They're a new, increasingly popular tool for helping Canadian high-tech entrepreneurs turn promising business ideas into moneymaking reality. They've also been called entrepreneur boot camps, start-up universities and business hothouses. But their lessons aren't restricted to Internet start-ups. They can also point the way to how established businesses in traditional sectors can benefit from a start-up frame of mind. Here's how accelerator programs work: Imagine being able

to brainstorm your big idea with 120 venture capital investors and business mentors from companies like Amazon and Facebook—all the while being immersed in an intensive 12-week program designed to help you shape your fledgling concepts into a viable business plan. And it's capped off with a chance to get start-up funds and pitch prospective customers. “Accelerator programs are one of the most hands-on, direct ways to support growth for entrepreneurs,” says Senia Rapisarda, Vice President, Strategic Initiatives and Investments at the Business Development Bank of Canada. “Entrepreneurs get exposed to some of the best practices from around the world and to global thinking from day one.” Ian Jeffrey is general manager of FounderFuel, one of three Canadian accelerator programs whose graduates are eligible for

financing from the $15 million that BDC Venture Capital has earmarked for implementation of its accelerator strategy. “We create unprecedented opportunities for these entrepreneurs to meet tons of really influential people and build relationships that will serve them forever,” Jeffrey says. Here are some of the lessons from these programs for both start-ups and existing companies with a growth idea. Find mentors—Harness your networks to find mentors. They can be invaluable sounding boards. Also consider creating an advisory board for your business. At accelerator programs, mentors—successful business people who want to give back— are critical for the success of entrepreneurs. Lyal Avery was a graduate in FounderFuel's first cohort last year. He is co-owner of Playerize, a company that helps game

studios market online and mobile games. “The networking opportunities and education can't be understated,” he says of his time at FounderFuel. “Accelerator programs help companies pull the trigger and grow.” Your search for a mentor could start at your local Chamber of Commerce, an industry group or on LinkedIn, the social media site for professional networking. It has discussion forums covering most industries. Move quickly—Don't take too long to get your idea out of the office and in front of potential customers. See if they'll pay for it— even if the idea is still embryonic. Accelerator programs give entrepreneurs a short time to test their ideas and figure out if they're viable or not. The lesson? Ask yourself what you can get out into the market—or at least in front of a few potential customers—in a month or a week instead of spinning your

wheels for months or more. Practice your pitch—Accelerator programs give entrepreneurs numerous opportunities to hone their pitch, building up to “demo day,” when they get a few minutes to pitch their project to an audience of hundreds of potential investors and clients from Canada and beyond. The lesson: Before you head out to see potential investors, clients or the bank, practice your pitch. Try it with colleagues, mentors and friends. Also, film yourself. The results may be painful to watch, but better to catch any flaws yourself than when an important investment or contract is at stake. One other tip from FounderFuel's Jeffrey: Don't be afraid to fail. Mistakes may be your greatest teacher—if you learn from them. “Most successful entrepreneurs will start three or four companies before they have a slam dunk.”

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Wednesday, October 10, 2012 The Valley Echo

Small Business Week October 14 - 20, 2012 Business planning: why is it so important? DAVE HAMILTON Black Press Publisher

There are two types of business plans — one for start up companies which contains additional supporting documents needed for financing and one for existing ongoing companies known as an operational or strategic plan. In general, a business plan precisely defines your business, identifies your goals and acts as your company’s resume. It helps you allocate resources properly and make good business decisions. Despite the critical importance of a business plan, many entrepreneurs procrastinate when it comes to preparing a written document. There is no single formula for developing a business plan. However, some elements are common to all business plans. Your plan should start with a statement of your business purpose and include a section about your business idea. Then describe your business, tell how you plan to market it, review your competition, describe the operating procedures and plans for employees including hiring and training. In addition, include the risks and contingency plans with your approach to insuring your business. Your marketing plan is an essential part of your overall business plan. Your marketing plan will help you: assess the needs of your customers and develop a product or service to meet those needs; communicate the attributes of the product or service to the customers; and establish distribution channels to get the products/services to the customer. Before you develop your marketing plan, you must first research the potential market for your product or service. Use numbers, facts and findings of market research to back up statements in your marketing plan. Indicate the business’ vision, mission statement and beliefs (this should align

with your target market and the core ing (community events, local charities, values and goals of the business and its sports); 5) networking (local business owner(s). You need to detail how your mixers, Chamber meetings, etc.; 6) proproduct or service is unique or how it motions (mail outs, samples, freebies, is better than models that already exist. discount coupons, sales, displays); 7) Before you begin selling something, internal marketing (employee rebates, you need to know who you are selling sales incentives, referral incentives). to. So you need to identify your target Determining the right price is anothmarket to find out who your customers er aspect of marketing. If your price is are through research, identify the age too high, you may alienate customers, group, gender, lifestyle and other de- and if it’s too low, you may give the immographic characteristics of the people pression that your product or service is who have shown interest in your prod- cheap and below standard. uct or service. Also from your research, Next, you’ll want to provide detailed provide statistics, analysis, numbers financial data, including a list of the and supporting facts that there is a de- equipment and supplies you will need mand for your product or service. and how much they will cost, a balWhen developing a general profile of ance sheet showing your assets and liyour customers you should define them abilities, an analysis of what it will take by their demographic characteristics, for you to break even, and a three year such as age, sex, marital status, location projection of your business’ income, of household, family including anticipated size and description, profits and losses. In "Despite the critical income (especially additon you should importance of a business disposable income), include detailed proplan, many entrepreneurs education level, ocjections of cash flow, cupation, interests, costs and income, procrastinate when it purchasing profile, organized monthcomes to preparing a cultural, ethnic, and by-month. It is imwritten document.” racial background. portant to write out Once you have your assumptions, in defined your target customers, you which your projections are based. can then learn about their needs and One reason for the failure of many preferences. To develop a profile of small businesses is that they underyour customers and understand their capitalize their business. Therefore, it needs, you will have to do some market is important that you know how much research. money you will actually need to start The next step is to know your competi- and to run your business. You should tor. Who else is selling to your custom- ask yourself; How much money do you ers? Make a list of your own strengths, need to start this busines? How much of weaknesses, opportunities and threats your own money do you have? Do you (SWOT) to compare with those of your already own any of the assets needed to competition. start? Do you have family, friends, acNext, plan how you will get your mes- quaintances, or others who are willing sage to reach potential customers with and able to invest? Do you have a strong 1) advertising (TV, radio, print publi- personal credit rating or lines of credit cations, online publications, websites, available? billboards, business cards); 2) publicity Once you answer the above questions (signs, stationary, branding, testimoni- you can then decise between equity als, referrals); 3) listings (business di- and debt financing or a combination of rectories, telephone directories, online both. listings, association listings; 4) sponsorEquity means ownership. With equity

investment, an investor makes money available for use in exchange for an ownership share in the business. If you use equity investment, be sure to consider how much ownership you’re willing to give up, and at what price. Once you sell 51 per cent of your shares, you lose control of your company. There is two kinds of debt financing incuding government and traditional commercial loans. Government funding (grants) is typically the most sought-after type of financing because it’s free money that you don’t have to pay back. Unfortunately, a grant might not be an option for your business because not only are there very few grants available, most are geared towards specific industries or groups of people such as youth, women, or aboriginal owners. Many lenders will look for the four “C's of Lending” when evaluating a loan application including: Cash flow, Collateral (your house or other assets), Commitment (how much of your own money you are willing to put into your business, and Character (your personal credit score). The difference between a private lender and a government program is the relative importance of these four C’s. A bank might place more importance on “collateral” and “commitment”, whereas a government program can often decrease the need for these by providing a government guarantee to the lender. There are many people who are more than willing to help you develop a business plan. The bottom line is, however, that the true value of a business plan is what you put into it. Use your research skills to locate information on how to write a business plan. You could also speak to Chartered Banks/ Credit Union, Accountants, Lawyers, Community Colleges, Business Consultants and/or visit the flowing helpful websites: www.smallbusinessbc.ca, www.bcstats.gov.bc.ca, www.onestop. gov.bc.ca, www.canadabusiness.ca and www.bdc.ca.

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The Valley Echo Wednesday, October 10, 2012

www.invermerevalleyecho.com A19

Small Business Week

October 14 - 20, 2012

Tips for financing your growing business Make a plan before you need the money Is it time to go shopping for a major purchase for your growing small business? It can be hard not to get swept up in the excitement. Whether it’s a major technology upgrade or shiny new equipment, you probably spent hours shopping around for the best product, comparing consumer reviews and talking with vendors. Then comes the hard part: How to pay for it? Here’s where many entrepreneurs could be doing a better job. Financial planning for an expansion project may not be quite as sexy as a cool new smart phone or bigger digs for your office. But it’s critical to make sure your investment doesn’t stretch your cash flow and sink you. “Growth can put an enormous strain on the cash flow of a company,” says Patrice Bernard, Senior Vice President, Financing and Consulting at the Business Development Bank of Canada. Small business owners often make the mistake of financing growth out of their cash flow or by cobbling together a patchwork of smaller loans for each individual purchase, Bernard says. Protect Cash Flow The result can be poor financing rates and repayment conditions. Or even

worse—the company may suddenly become caught in a cash flow squeeze. And then it may be too late to line up any financing at all. “It’s as if you used a credit card to finance your home renovations. Your cash flow would be really affected,” Bernard says. Bad financial planning is especially common— and risky—at fast-growing companies, says Peter Brown of financial advisory firm Deloitte, where he is national leader of private company services. “High growth can kill you if you don’t have the capital.” Bernard agrees: “You need to plan more if you’re expanding because you usually have much higher accounts payable and receivable.” The solution is to take time to do a financial plan for upcoming investments, preferably at the beginning of each year. The first step is to work out how much financing you’ll need based on your overall business growth plans. Next, meet with your financial partners early on to discuss your plans and brief them about your needs for the coming year. This is the time to secure a credit line for your investments in the coming year, which you can draw on as needed and then convert into long-term debt at the

end of the year. Plan Financing The idea is to plan your financing to have the best possible conditions for your debt. The exercise may even show that you need more than one financial partner to give you enough flexibility. And never pay for large expansion projects out of your cash flow, Bernard says—even if it looks like you’ve got oodles of extra cash on hand right now. “That’s a big mistake,” Bernard says. “When cash flow is good, you think it will always be like that. But if a company is growing, it has to invest much more than other companies. And profits usually won’t be enough to cover your investments.” Brown agrees: “It’s always better to seek financing before you need it rather than during a crisis. It shows good management. Financiers are much more likely to give financing to an entrepreneur who shows good management.” Rob Read always used self-financing at his quickly growing fire extinguisher maintenance company, Bison Fire Protection, as it ballooned from five employees to 50 over the past decade. But when Read and partner Émile Jolicoeur decided to expand into new lines of business, such as

fire alarms and sprinkler services, they realized they needed better financial planning. They brought in an outside consultant to help them plot out their overall business strategy, and that included laying out a financial plan. The exercise led them to do their first budgeting and forecasting and add overdraft protection and a line of credit to make sure they’ve had money lined up before they actually needed it. Equally important, Read says, he started including his financial partners more in his planning through regular meetings to discuss coming needs. “They’re partners in our business. They’re definitely part of the team.”

Thinking about how to finance your growing company? Here are some tips: Talk to your suppliers: Consider asking suppliers for financing for a purchase, says Peter Brown of financial advisory firm Deloitte. Many are willing to offer a loan if it means a sale—a win-win for the supplier and you. And if you’re a supplier yourself, think about offering customers financing. It could become a new revenue stream and boost sales at the same time. Speed up cash flow: Every entrepreneur knows productivity is important. But how many focus on the productivity of their cash? “Faster cash flow is a big competitive advantage,” Brown says. Con-

sider offering customers creative terms to speed up cash flow, such as a 2% discount to those who pay within 10 days. “Getting cash quicker can mean more peace of mind and a reduced line of credit,” Brown says. Focus on quality clients: Some customers are slow to pay because their cash flow isn’t great, and they’re sometimes not worth the effort or risk, Brown says. “Many businesses chase sales—rather than profitable sales,” he says. A trademark of well-managed companies is a focus on high-margin, quality customers, who translate into smoother finances and fewer surprises as you grow. “It’s a real secret to success.”

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Wednesday, October 10, 2012 The Valley Echo

Small Business Enterprise

AUGUST 2012

SME DISTRIBUTION EXPORTS EXPORTS EXPORTS EXPORTS

Small business is big in Canada: 98.1% In a global economy, exports add significantly of businesses have fewer 98.1% than of 100 employees. Small business is big in Canada: businesses have fewer to than economic 100 employees. growth. 86% of exporting companies are small (<100 employees), but In a global economy, exports add significantly to produce only 25% of the total#Value Exporters by size ofbyfirm of firms % of%firms Size of firm # of firms % of firms SME Distribution Industry # of Canadian economic 86%exports of exporting companies to are small In a globalgrowth. economy, add significantly exports; the majority of exports are Exporters size100 of firm # 146,056 of firms (57%) % of13.1% firms 31,155 86.1% Small (fewer employees) Micro (1-4 employees) 615,599 54.9% Retail tradebythan In a global economy, exports add significantly tototal (<100 employees), but produce only 25% of the economic growth. 86% of exporting companies are small provided large firms. Exporters by sizeby of firm # of3,836 firms % of firms 10.6% Medium (100-499 employees) 31,155 86.1% Small (5-99 employees) 485,180 43.2% Small (fewer than 100 employees) Other services 125,200 11.3% economic growth. 86% of exporting companies are small value Canadian exports; the majority of of exports (57%) (<100of employees), but produce only 25% the total 31,155 86.1% Small (fewer than 100 employees) In a global economy, exports add significantly to (500+ 3,836 10.6% Medium 18,999 1.7%exports Large (<100 employees), but produce 25% of of total Medium (100-499 Construction 125,725 11.3% In athe global economy, add significantly are provided byemployees) large firms. Exporters byemployees) size to of employees) firm #byof1,194 firms % of3.3% firms # of firms value of(100-499 Canadian exports; the only majority exports (57%) Exporters size of firm 3,836 10.6% Medium (100-499 employees) economic growth. 86% of exporting companies are small economic growth. 86% of exporting companies are small 36,185 100.0% TOTAL value of Canadian exports; the majority of exports (57%) 1,194 3.3% Large (500+ employees) 2,528 0.2% Large (500+ employees) Professional, scientific and technical services 124,616 11.2% are provided by large firms. 31,155 86.1% Small (fewer than 100 employees) 31,155 Small (fewer than 100 employees) 1,194 3.3% (<100 employees), butfirms. produce only 25% of the total100.0% (<100 employees), but produce only(500+ 25% ofExporter the total Large employees) Statistics Canada, 2010 are provided by large TOTAL 1,122,306 36,185 100.0% Health care and socialRegister, assistance 96,655 8.7% TOTAL 3,836 Medium (100-499 3,836employees) 10.6% Medium (100-499 employees) value of Canadian majority of exports (57%) value of Canadian exports; the majority of exports (57%)exports; the 36,185 100.0% TOTAL Statistics Canada, Exporter Register, 2010 Statistics Canada, Business Register, December 2011. Excludes enterprises without employees. fewer than 100 employees. Accommodation and food services 74,130 6.7% 1,194 Large (500+ employees) are provided by large firms. Large (500+ employees) 1,194 3.3% Statistics Canada, Exporter Register, 2010 are provided by large firms. 36,185 TOTAL

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s.

EXPORTS

SME JOB CREATION STAGE OF DEVELOPMENT SME Distribution by Industry # % SME JOB CREATION CREATION STAGEOFOFDEVELOPMENT DEVELOPMENT SME Distribution by Region % SME % Population SMEs employed 63.7% of private sector employees in SMEs typically have a growth cycle, from start-up to SME JOB STAGE SME JOB CREATION STAGE OF DEVELOPMENT 2011, 6.8 million people country. In 2011, growth, maturity have and finally decline. SMEsoremployed 63.7% of across privatethe sector employees in SMEstypically typically a growth cycle,Fast-growing, from start-up SMEs have a growth cycle, fromto startSMEs employed 63.7% of private sector employees in SMEs typically have a growth cycle, from start-up to SME JOB CREATION STAGE OF DEVELOPMENT created about 79 000 jobs. Over the 2001 to 2011 innovative firms contribute disproportionately to job 2011, or 6.8 million people across the country. In 2011, growth, maturity and finally decline. up to growth, maturity and Fast-growing, finally decline. 61,471 36,185 51,507

5.5% 100.0% 4.6%

Transportation and warehousing

51,147

4.6%

Administrative and waste management

51,733

4.7%

Wholesale trade

TOTAL

Statistics Canada, Exporter Register, 2010

Manufacturing

Retail trade

Newfoundland Other services & Labrador Nova Scotia Construction

146,056 1.5% 125,200

Statistics Canada, Exporter Register, 2010

13.1% 1.5% 11.3%

2.7% 2.8% SMEs employed 63.7% of private sector employees in and huntingSMEs typically have a growth cycle, from sta 125,725 11.3% Agriculture, forestry, fishing 50,872 4.6%

2011, orcreated 6.8 million people across country. In 2011, growth, maturity and finally decline. Fast-growing, period SMEs were responsible forthe 53.9% of2001 allor jobs creation: they account for only 2.6%fi of firms,and high2011, 6.8 million people across the country. In 2011, growth, maturity finally decline. Fast-gro SMEs about 79 000 jobs. Over the to 2011 innovative firms contribute disproportionately to job4.0% Fast-growing, innovative rms contribute Prince Edward Island 0.5% 0.4% Real estate and rental and leasing 44,659 Professional, scientific and technical services 124,616 11.2% SMEs employed 63.7% of private sector employees in SMEs typically have a growth cycle, from start-up to disproportionate SMEs created about 79 000 jobs. Over the 2001 to 2011 innovative firms contribute disproportionately to job SMEs created about 79 000 jobs. Over the 2001 to 2011 innovative firms contribute created on average in the private sector. growth firms employed 8.6% of the workforce in 2006), disproportionately creation: they period SMEs were responsible for 53.9% of all jobs2.2% creation: insurance they account forto only job 2.6% of firms, high- 3.8% New 2.3% Finance and 41,981 Health care andmillion social assistance 96,655 8.7% 2011,Brunswick or 6.8 people across the country. In 2011, growth, maturity and finally decline. Fast-growing, period SMEs were responsible for 53.9% of all jobs creation: they account for only 2.6% of firms period SMEs were responsible for 53.9% of all jobs creation: they account for only 2.6% of firms, highbut also tend be riskier ventures and with fewer account fortoemployed only 2.6% ofof fithe rms, high growth created on average in the private sector. growth firms 8.6% workforce in 2006), Quebec 21.8% 23.6% Relative contributions to the net change in private Artssector. and entertainment 1.5% created in the private growth firms16,977 employed 8.6% of the workforc SMEs created about 79 jobs.sector. Over the 2001 on to average 20116.7% innovative firms contribute disproportionately job Accommodation and food 74,130 created on average inservices the000 private growth firms employed 8.6% of theworkforce workforce intoin 2006), fi rms employed 8.6% of the 2006), tangible assets and can face difficulties in with securing but also tend to be riskier ventures and fewer Ontario 35.0%of all 38.4% also of tend to be highriskier ventures sector employment SMEs Management ofincompanies and enterprises 13,800 period paid SMEs were responsible for jobs creation: they account for onlybut 2.6% firms, Relative contributions tobythe net53.9% change in private Wholesale trade 61,471 5.5% to the but also tend to be riskier ventures and 1.2% with and with Relative contributions netalso change but tend toprivate be riskier ventures and with fewer financing. tangible assets and can face difficulties in securing tangible assets and can face difficulties in sec Relative contributions toprivate the netsector. change in private Manitoba 3.3% 3.6% createdpaid on average in the growth firms employed 8.6% of the workforce in 2006), Information and cultural industries 13,883diffi 1.3% sector paid employment byfewer SMEs sector employment by SMEs tangible assets and can face culties Manufacturing 51,507 4.6% tangible assets and can face difficulties financing. in securing 2011 paid employment by SMEs financing. sector Saskatchewan 3.5% 3.1% in securing nancing. but also tend tofibe riskier ventures and with Educational services 11,856fewer % 1.1% SMEs by Stage of Development financing. Transportation and warehousingto the net change 51,147 4.6% 2010 2011 Relative contributions in private 2011 SMEs by Stagein of9,147 Development Alberta 13.6%2010 10.9% tangible assets and can face difficulties securing 5% Mining oil and gas extraction 0.8% 2009 SMEs byandStage of Development % Start-up Administrative waste management 51,733 4.7% 2011 sector employment by SMEs 2010 paidand 2009 Start-up SMEs by Stage of Development % British Columbia 15.5% 13.1% financing. 2008 TOTAL 1,113,052 100.0% 2010 2009 Agriculture, forestry, fishing and hunting 2007 Nunavut / NWT / Yukon 2009 2011 2008 Real estate and rental and leasing 2006

50,872 2008 0.3%2007 44,659

4.6% 0.3% 4.0%

41,981 2005

3.8%

2008 Statistics 2010 Canada, Business Register, Dec. 2011 and Census 2011 2006 2007 2005 Finance 2007 2009 and insurance

Fast growth 10%5% Start-up Fast growth Statistics Canada, Business Register, December 2011 Start-up 5% Slow moderate growth 38% Fastor growth Slow or moderate growth SMEs by Stage of Development %10% Fast growth 10% Maturity 35% Maturity Slow or moderate growth 38% Start-up 5% Slow or moderate growth 38% Decline Decline 12% Maturity 35% Fast growth 10% Statistics Canada, Survey on Financing of Small and Medium Enterprises, Maturity 35% Statistics Canada, Survey on Financing of Small and Medium Enterprises, 2007 Decline 12% Slow or moderate growth 38% Decline 12% Statistics Canada, Survey on Financing of Small and Medium Enterprises, 2007 Maturity 35% Statistics on Financing of Small and Medium Enterprises, 2007 (100,000) -Canada, Survey 100,000 200,000

2006 2004 2004 2006 Arts and entertainment 16,977 1.5% 2008 2005 2003 2003 2005 2007 2004 2002 Management of companies and enterprises 13,800 1.2% 2002 2004 2006 2001 2003 Information and cultural industries 13,883 1.3% 2001 2003 2005 (300,000) (200,000) In 2005, small and medium-sized businesses, including 2002 Size ofApril firm2012 $M % of12% GDP Statistics Canada, Survey 200,000 on1.1% Employment, Payrolls and Hours, Educational 11,856 2002 (300,000)services (200,000) (100,000) 100,000 2004 Decline 2001 unincorporated businesses, represented 54.3% of GDP Statistics on Payrolls and Hours, April 2012 2001 Each year, thousands companies are creat 2003Canada, 414,093 Small (fewer than 100 employees) Mining and oilSurvey gasEmployment, extraction 9,147 0.8% Statistics Canada, Survey on Financing of Small and Medium Enterprises, 2007 of 41.9% (300,000) (200,000) (100,000) 100,000 200,000 produced inand the business sector. Each year, thousands of companies thousands others “exit,” with aare net average o 2002 (300,000) (200,000) (100,000) - 1,113,052 100,000 200,000 Each year, thousands of companies are created, and 122,409 12.4% Medium (100-499 employees) Statistics Canada, Survey on Employment, Payrolls and Hours, April 2012 TOTAL 100.0% created, and thousands others “exit,”have with around 20,000. “Entries” ranged from 1 2001 Statistics Canada, Survey on Employment, Payrolls and Hours, April 2012 thousands others “exit,”ofwith a net average of “entries” of 451,935 45.6% Large (500+ employees) Statistics Canada, Business Register, December 2011 Each year, thousands companies are created, and a net average “entries” around 20,000. 200,000of annually, whereas “exits” have range Less than 1 out200,000 of 4 SMEs invest in R&D, given“Entries” thatofof (300,000) (200,000) (100,000) 100,000 Each year, thousands companies arefrom created, and to around 20,000. have ranged 125,999

SME GDP CONTRIBUTION

SURVIVAL RATE OF SMEs

SURVIVAL RATE OF SMEs SURVIVAL RATE OF SMEs SURVIVAL RATE OF SMEs RESEARCH & DEVELOPMENT RESEARCH & DEVELOPMENT SURVIVAL RATE OFwith SMEs thousands have others “exit,” a net 125,999 average ofto “entries” of “Entries” ranged from 200,000 thousands others “exit,” with a nethave average of “entries” of RESEARCH & DEVELOPMENT 200,000 annually, whereas “exits” ranged from annually, whereas “exits” have ranged from around 20,000. “Entries” have ranged from 125,999 to Less than 1 out of DEVELOPMENT 4 of SMEs invest in R&D, in given that given Less than 1 out 4 SMEs invest R&D, RESEARCH & Each year, thousands of companies are created, and around 20,000. “Entries” have ranged from 125,999 to 50,000 totoannually, 120,000 from 2001 “exits” to 2006.have 50,000 120,000 from 2001 to 2006. that R&D represents a trade-off: investment 200,000 whereas ranged from of R&D represents investment cangiven help drive Less than 1 out ofa 4trade-off: SMEs invest in R&D, that thousands others “exit,” with a net average of “entries” 200,000 annually, whereas “exits” have ranged from Around half of new fi rms survive their 5th can help product innovation and Less than 1 out drive of 4 and SMEs invest in R&D, givenisthat 50,000 20,000. to 120,000 from toranged 2006. RESEARCH & product innovation competitiveness, year of Around half of new firms2001 survive their 5from bdc.ca | R&D represents aDEVELOPMENT trade-off: investment but canasithelp drive R&D % ofdifficult Expenditures % around “Entries” have 125,999 to Survival Rate of SMEs 50,000of to operations. 120,000 from 2001 to 2006. year competitiveness, but it is difficult to fund

988,437 TOTAL 50,000 to 120,000 from100.0% 2001 to 2006. represents a trade-off: investment can help drive Statistics Canada, Small, Medium-sized and Large Businesses in the Canadian Economy: product innovation and competitiveness, but it is difficult Around ofMay new2011 firms survive their 5th ye Measuring Their Contribution to Gross Domestic Product inhalf 2005, to fund from a company’s own resources. operations.

Statistics Canada, Survey on Employment, Payrolls and Hours, April 2012 R&D

th BUSINESS DEVELOPMENT BANK OF CANADA

R&D represents a trade-off: investment help drive to fund from a company’s own resources.can operations. product innovation and competitiveness, but it is difficult 200,000 whereas 1 yearhave of Aroundannually, half of new firms “exits” survive theirranged 5th yearfrom n No R&D 77% Less than 1 out of 4 SMEs invest in R&D, given from a company’s own resources. Size of firm $M % of GDP th product innovation and competitiveness, but it is that difficult year of Around half of new firms survive their 5 years to 120,000 from 2001 to2 2006. to fundrepresents from a company’s own resources.can help driven Under 20% 50,000 operations. R&D a trade-off: R&D as (fewer %from of Expenditures % Survival Rate of SMEs 18% % to fund a company’s owninvestment resources. operations. 414,093 41.9% Small than 100 employees) 3 years th product innovation and competitiveness, but it is difficult half of new5% their 5 year of 88.2% 4 years year Rate R&D as % (100-499 of Expenditures %n Over 20% 1Around 122,409 12.4% Medium employees) n No R&D 77% Survival of SMEs firms survive % and Medium Enterprises, 2007 R&D as % offrom Expenditures to fund a company’s own resources.Statistics Canada, Survey%on Financing of Small Survival Rate of SMEs % operations. 5 years 2 years 451,935 45.6% Large (500+ employees) No R&D 77% 18% nnUnder 20% n No R&D 77% 988,437 100.0% TOTAL R&D as % of Expenditures % 18% Under 20% nnOver 20% 5% Statistics Canada, Small, and Large Businesses in the Canadian Economy: 18% nMedium-sized Under 20% Noto R&D Measuring TheirSurvey Contribution Gross Domestic ProductEnterprises, in 2005, May 2011 77% Statistics Canada, onnFinancing of Small and Medium 2007 n Over 20% 5% n Over 20% 5% 18% nFinancing Under of 20% Statistics Canada, Survey on Small and Medium Enterprises, 2007

bdc.ca |

BUSINESS DEVELOPMENT Statistics Canada, Survey on Financing of Small and Medium Enterprises,BANK 2007 OF CANADA

n Over 20%

bdc.ca |

Statistics Canada, Survey on Financing of Small and Medium Enterprises, 2007

1 year 13 year 2years yearsRate of SMEs Survival 24 years years 3year years 351years years years 24years years 4Statistics Canada, SME Data Warehouse, 2008 5years years 3 5 years

BUSINESS 5% DEVELOPMENT BANK OF CANADA

4Statistics years Canada, SME Data Warehouse, 2008 Statistics Canada, SME Data Warehouse, 2008 5 years

78.7% 88.2% 88.2% 72.1% 78.7% % 78.7% 63.7% 72.1% 88.2% 72.1% 53.0% 63.7% 78.7% 63.7% 53.0% 72.1% SMEs AT53.0% A GLANCE | 63.7%

Statistics Canada, SME Data Warehouse, 2008

53.0%

AUGUST


Special Features - Small Business 2012