Ontario and Alberta are expected to lead the country in small business growth, while British Columbia and Quebec will also provide “fertile ground” for entrepreneurs, says a new report by CIBC.
The report, entitled “Canadian Small Business: Back in High Gear,” notes the growth by the Canadian small business sector outpaced the gains in the economy as a whole in 2004 and is expected to do so again in 2005.
The report says that Ontario experienced the strongest growth in small business formation in 2003, with the number of enterprises with less than 20 employees rising by 7.2%, or more than 50,000. Small business formation in the province is expected to grow by 6% in both 2004 and 2005.
In Alberta, the number of small businesses in the province increase by 6.1% in 2003 thanks to the booming oil sector, an influx of non-energy investment and increased diversification in Calgary. The strong growth is expected to continue.
Other highlights:
- Small business formation in B.C. is expected to accelerate to 10% in 2004 and 2005, adding 30,000 new firms;
- Quebec is expected to see the number of small firms with less than 20 employees rise by 9% with the creation of 45,000 new enterprises in 2004 and 2005.
“The hotbeds of small business growth are primarily in Ontario’s urban centres,” said Rob Paterson, senior vice president, CIBC Small Business Banking. “A strong housing market, booming oil sector and healthy business investment are boosting small firms in Alberta and British Columbia and overall Western Canada is performing well.”
For the complete report, go to www.cibc.com/ca/small-business/backinhighgear and http://research.cibcwm.com/res/Eco/EcoCASBE.html.