Celebrating Canadian Small Businesses!
We are halfway through the month of August and halfway through summer! I have enjoyed the warm and sunny weather, the longer days, and the weekends filled with fun. I have also made time to rest and recharge because although I work hard in my business, I also set aside time to relax and enjoy time with my family and friends, spending time outside, and soaking in the goodness of life. I hope you, too, are having a fun and restful summer.
This week I am focussing on Canadian small businesses. Small businesses are described as companies with less than 100 employees, play an important role in our economy, and contribute greatly to Canada's growth. Statistics Canada reports that in 2022 small businesses employed 10.7 million people, which was 63% of all employees and accounted for 98% of all businesses with employees. Medium-sized companies with 100 to 499 employees employed 3.6 million people and accounted for 21.3% of all employees, and large businesses had 2.7 million employees and accounted for 16% of all employees. Small businesses employ 4 times as many people as large corporations and contribute greatly to Canada's economic engine, but do not always get the respect and attention we deserve.
Many small business owners, including me, started working in our businesses part-time or as side hustles. People often try entrepreneurship while working full-time jobs and using their extra time to launch and grow their businesses. This is a great way to test a business idea, determine if there is market demand for a product or service, and develop a client list and reputation in the community. Building a business while working a full-time job removes the pressure of paying yourself while starting your business. The extra income you earn can be used to pay for business expenses, pay off debt, and increase your savings. It also lets you determine if entrepreneurship is something you want to pursue full-time.
Moving into full-time entrepreneurship once you have some income, clients, and traction is such an incredible accomplishment. Many people dream of starting businesses, but many allow fear to stop them. And that is okay because working for yourself is challenging and not suited for everyone. Moreover, business owners need great employees! As the business owner, you make and are responsible for your decisions, you drive your income, and you account for your missteps and successes. This requires a clear understanding of yourself, your strengths and weaknesses, and knowing when you need help. Too many of us small business owners struggle with that last part because we mistakenly believe that we should have all the answers in our businesses, but nothing is further from the truth. This “lone ranger” mentality often holds us back and limits our capacity to grow. We cannot do everything by ourselves, nor do we know everything about our businesses. If we do then perhaps our firm is stagnating and that works for you because your company is manageable for you. For those of us who are in the growth stage of our businesses, it is incredibly important that we know when to hire or outsource help, hire a coach, or take a course to allow us to scale.
Irrespective of having a “go it alone” mindset, Statistics Canada found that small business owners are concerned about increasing inflation, climbing interest rates, the rising cost of debt, the cost of materials, and labour shortages, even more than medium and large business owners. Due to our company size, these external factors impact us more than larger companies. As a result of these ongoing economic issues, small business owners expect to experience decreased profitability and will freeze hiring in 2023. These are not strong signals for our economy.
Ways you can help? Support small businesses in your community! Both in my personal and business spending I look for ways to buy from and support other small business owners and I encourage you to do the same. There are business directories that list businesses by location, products, and services, so do a bit of research to find companies in your area. For example, Women Who Freelance, is a diryourectory of women freelancers and small business owners in various industries, the Canadian Black Chamber of Commerce’s Black Business Directory of Black-owned businesses, and Digital Main Street’s Vendor Directory lists brick-and-mortar small businesses across Canada are a few directories listing small businesses.
Thanks for reading my blog today and email me letting me know yoru entrepreneurial story!
Michelle
CEO