Page 40 - INSIGHT MAGAZINE_January2025

BRIAN'S BLOG

Small businesses face growth potential: report

The small Canadian businesses with
high-growth potential and expectations
might not be the ones you have in mind,
says a report released this past fall by
the Canadian Chamber of Commerce’s
Business Data Lab (BDL).
The report, entitled Scaling Success: The
Characteristics of High-Growth Small Businesses
in Canada, shows that while many Canadians
might think of the tech sector when thinking
of firms with high-growth potential and
expectations, the common characteristics for
small businesses that are most likely to project
high growth are, in fact, quite different. These Stronger government connections “In most cases they are household
firms typically: needed names and really big companies,” says
• Have 5–19 employees. “It’s kind of like nurturing a child. Greg, noting these same companies
• Have operated between 3–10 years. You want that child to be extremely often rely on smaller businesses as
suppliers. “But the fact of the matter
• Are in Ontario and Quebec. successful and we as parents do things is that small businesses really need a
• Are based in manufacturing, accommodation to help that child through the growing hand up and support to grow to become
and food services, or professional services. and learning years. It’s the same thing medium sized or larger employers.”
• Are owned by immigrants or visible minorities. government needs to do for small
businesses,” he says, adding this is Chambers a conduit for
• Are exporters. particularly key for a growing number government
The findings in the report do not come as a of businesses started by newcomers. He says Chambers of Commerce, located
surprise, says Cambridge Chamber of Commerce “They are coming to Canada for an in most communities nationwide, are
President and CEO Greg Durocher, noting the opportunity and in many cases, they are the ideal conduit for government to
important impact small and medium-sized starting small businesses because they nurture connections with those smaller
businesses have on our economy. have skills or expertise in other areas operations.
“A lot of people, especially those in decision- but can’t find work, so they create their “The mantra of ‘Small Business Too Big
own opportunities.”
making positions of the government, look at to Ignore’ is something the Chamber
small businesses as ‘mom and pop’ organizations The report details how approximately network should be carrying as a banner.
on ‘Main Street’, but overlook the fact that even 12% of small businesses project growth That’s our wheelhouse. We have a
the major employers we have in this country of 11% or more, compared to almost 8% personal relationship with these
today all started off as small businesses,” of medium and large businesses. Three businesses.”
he says, noting the success of a previous percent of small businesses believe
Cambridge Chamber program several years ago they can achieve “high-growth status,” The report also underscores increased
that promoted small businesses called Small defined as annual growth of 20% or input costs, inflation, difficulty attracting
Business Too Big to Ignore. “Everything starts more. and retaining labour, and weak
small and it’s one step at a time to reach the To help small businesses scale consumer demand as key challenges
pinnacle of corporate success.” effectively, the report recommends to growth. The most crucial factors for
growth include access to financing, the
According to Statistics Canada, approximately public policy that targets firms’ biggest ability to export, technological adoption
98.6% of businesses are considered small with challenges by simplifying financing, and a supportive policy environment.
less than 100 employees and historically, small reducing regulatory burdens, fostering
businesses have been a key driver of job creation export growth, and prioritizing “Canada needs more high-growth firms,”
in Canada, employing nearly 70% of the private upskilling. says Marwa Abdou, the report’s lead
sector workforce. Despite slower employment To assist, Greg says the government author and BDL Senior Research Director.
growth over the last four years, small businesses needs to create stronger connections “Years of slow economic growth, low
continue to account for almost (43%) of all job with small businesses which isn’t easy productivity and underinvestment have
gains. since nearly one and half million exist in weakened our global competitiveness
and resulted in declining living
Greg says the government, both federal and Canada and that their ‘voices’ are often standards for Canadians. Historically,
provincial, must recognize the fact that growing watered down. More often, he says it’s small businesses that have been a
small businesses is the future of economic decision-makers can easily connect key driver of job creation in Canada.”
growth and prosperity in Canada. with much larger businesses since there
are fewer of them.
40 Winter 2025 www.cambridgechamber.com