March 23, 2023
Small businesses are major contributors to the Canadian economy. In 2022, businesses with 1 to 99 employees comprised 98.0% of all employer businesses in Canada and employed 10.7 million individuals which is almost two-thirds (63.0%) of all employees.
By comparison, businesses with 100 to 500 employees, employed 3.6 million individuals (21.0% of employees) and businesses with more than 500 employees employed 2.7 million individuals (16.0% of employees) in Canada.
From the beginning of January to early February 2023, Statistics Canada conducted the Canadian Survey on Business Conditions to better understand the current environment businesses in Canada are operating in and their expectations moving forward.
Based on the results of the survey, obstacles expected by small businesses in the coming months are centered around rising inflation, rising cost of inputs, and rising interest rates and debt. Small businesses were also more likely to expect a decrease in profitability and to expect supply chain problems but less likely to hire new employees and to increase prices for goods and services.
