Ontario and Alberta will lead the country in small business activity over the next five years, according to a comprehensive new CIBC report on small business entitled.

“A combination of factors have propelled Ontario and Alberta to the top of the pack, namely above-average economic growth, favourable demographics and a higher concentration of industries that are conducive to small business growth,” said Benjamin Tal, senior economist, CIBC World Markets.

The report, Canadian Small Business: A Growing Force, identifies regional differences in predicted growth for the next five years:

Ontario is the most promising province for small business growth. The province’s above average economic growth and a strong wave of new immigrants, who have a higher tendency to become self-employed, will boost Ontario’s small businesses.

Alberta follows closely behind Ontario, primarily due to positive spin-offs from the energy sector. A projected strong increase in the ranks of workers in the 35 to 55 age group is expected to spur entrepreneurial activity, because this group has the higher propensity to become self-employed.

Quebec is also well-positioned for growth, given the province’s expanding service industry, its heavy reliance on manufacturing activity and a relatively high level of co-operation between large and small businesses.

British Columbia will remain an attractive spot for entrepreneurs, as economic growth is expected to match the national average.

The study identified eight macro factors that help determine the most favourable regions for entrepreneurs to do business over the next five years, including: the small business survival rate; net migration; and economic growth.

Canadian Small Business: A Growing Force, is available on the CIBC World Markets website at http://research.cibcwm.com/res/Eco/EcoCASBE.html