Oct 3, 2001 Volume 4, Number 8
CONTENTS
* Introduction - Editor's Comments
* What's New at www.gdsourcing.ca
* Statistics Canada releases
* Canadian Micro Business Profile
* Quick facts on local markets
* Small Business Stats Facts
RETURN
TO ARCHIVES
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INTRODUCTION - EDITOR'S COMMENTS
Hello,
Welcome to the latest issue of the BR Newsletter.
We are currently in the process of reorganizing our web site so that
browsing for relevant data sources will be more effective. This may result
in a few temporary internal dead links over the next couple of weeks. We
will try to keep them to a minimum and correct them as soon as possible.
I would like to thank Marcelle Lafontaine of the Canada Business
Service Centres National Secretariat for her review of Researching a Small
Business 2001. We are proud that she found the publication useful and easy
to use:
"I was very happy to receive and to assess your excellent research
guide "Researching a Small Business 2001".
We are recommending it to our Canada Business Service Centres across
Canada. I found that it not only contained a vast amount of useful
information but that it was presented in a clear and simple manner, with
all pertinent websites and addresses included. I especially liked the fact
that the material was Canadian and I found the price quite reasonable."
For more information about our research guide, please see our web site
at:
https://www.gdsourcing.ca/gdstart.htm
I would also like to thank everyone who took advantage of our Spending
Patterns offer. We did not expect the response we got! It was fantastic.
We are glad to be able to help so many people save money on Statistics
Canada publications.
By the way, for those who missed it last month. We are offering the
Households Spending publication Spending Patterns in Canada at a
discounted price of $36.00 (retail price from Stats Can $45.00).
For more information on this publication see:
http://www.statcan.ca/english/IPS/Data/62-202-XPE.htm
If you would like to order a copy at our discount price simply fax us a
company purchase order or credit card information along with shipping
details to 905-332-3740.
Finally, I would just like to mention a site we came across the other
day. We get a lot of odd e-mail queries looking for very strange
statistics. If you have such a request yourself you might try
http://www.uselessknowledge.com/
There is quite a lot of Canadian data there. Enough to satisfy most
trivia buffs. (E.g. did you know that a Canadian invented the
"pie-in-the-face" gag? (For details see:
http://www.coolquiz.com/trivia/)
Thank you for your subscription.
I hope you find this issue helpful.
John White
Editor, BRN
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WHAT'S NEW AT www.gdsourcing.ca - DOCTORS,
BOSSES, & BIKERS
The following web sites were added to the GDSourcing index over the
summer GDSourcing is a reference point for free Canadian statistics
on-line.
CANADIAN MEDICAL ASSOCIATION
http://www.cma.ca/
GDSourcing Site Summary:
https://www.gdsourcing.ca/works/CMA.htm
- data on physicians and health care in Canada
JOB QUALITY.CA
http://www.jobquality.ca/
GDSourcing Site Summary:
https://www.gdsourcing.ca/works/jobquality.htm
- workplace indicators (e.g. security, job design, work schedules etc.)
MOTORCYCLE AND MOPED INDUSTRY COUNCIL
http://www.mmic.ca/
GDSourcing Site Summary:
https://www.gdsourcing.ca/works/Motorcycle.htm
- brief profile of motorcyclists in Canada
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STATISTICS CANADA RELEASES
The following statistics were release by Statistics Canada over the
last three weeks. We have listed those releases we feel are of the most
interest to Canadian entrepreneurs.
Very few of these statistics are available on-line. The URL listed is a
direct link to the press release associated with the data. It provides
contact and ordering information.
Many of these releases are related to unpublished databases however
where publications are available we have listed the Stats Can prices as
well as our own 20% discount price. If you would like to order a
publication send us an e-mail at [email protected]. Put "StatsCan" in
the subject line of your e-mail. Someone from our office will contact you
promptly.
NB: to access free publications listed follow the URL indicated.
BUSINESS SERVICES
Trends in early retirement 1997 to 2000
http://www.statcan.ca/Daily/English/010919/d010919c.htm
Biotechnology Survey 1997
http://www.statcan.ca/Daily/English/010925/d010925i.htm
(Free publication available online)
CHARITY NON-PROFIT
Trends in personal gifts and charitable donations 1969 to 1997
http://www.statcan.ca/Daily/English/010917/d010917c.htm
(Free publication available online)
DEMOGRAPHICS
Migration 1999/2000
http://www.statcan.ca/Daily/English/010925/d010925b.htm
Population estimates July 1, 2001 (preliminary)
http://www.statcan.ca/Daily/English/010925/d010925a.htm
EDUCATION
Education Price Index 1999
http://www.statcan.ca/Daily/English/010910/d010910a.htm
HOSPITALITY & TOURISM
Domestic travel 1996 and 1997 (revised)
http://www.statcan.ca/Daily/English/010928/d010928i.htm
MANUFACTURING
Annual Survey of Manufacturers 1999
http://www.statcan.ca/Daily/English/010919/d010919f.htm
Challenges to advanced technology adoption
http://www.statcan.ca/Daily/English/010921/d010921c.htm
(Research papers available free of charge online)
Innovation in Canadian manufacturing: Provincial estimates 1999
http://www.statcan.ca/Daily/English/010927/d010927e.htm
(Research paper available free of charge online)
PRIMARY SECTOR
Aquaculture statistics 2000 (preliminary)
http://www.statcan.ca/Daily/English/010927/d010927a.htm
TRANSPORTATION & COMMUNICATIONS
Domestic travel 1996 and 1997 (revised)
http://www.statcan.ca/Daily/English/010928/d010928i.htm
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CANADIAN MICRO BUSINESS PROFILE
A great deal has been written on the small business sector in Canada,
however, its smaller cousin the micro business sector has often been
eclipsed or altogether forgotten. This is a first annual check up of the
micro business sector.
In December 2000, Statistics Canada identified 604,445 micro businesses
in Canada (businesses with 1 to 4 employees). They account for 57.9% of
all employer firms. However between 1990 and 1998 micro businesses
accounted for 95% of new employer businesses.
The biggest challenge of these smallest of small businesses is
survival: nearly 1 in 4 fail within their first year in operation. And
even after 5 years in business, they are half as likely to survive as
their small, medium and large business cousins.
Furthermore they are also less likely to grow into larger firms. At any
given time 1 in 5 (22%) are strictly in survival mode: they are
established as a business but yet to turn a profit. Only 1.07% of firms
with less than 10 employees will grow to the next size category within a
ten-year period. Even less (0.02%) will grow to more than 100 employees.
Small businesses (with more than 10 employees) are 5 times as likely to
the next size category over the same period.
It should be noted however that significant growth is not a priority
for many micro business owners. 20% do not considered the business to be
the most important source of household income. In fact only 1 in 2 (54%)
indicate that their business is their primary and only source of income.
With these kinds of survival odds who would want to run a micro
business and why?
First of all the sheer desire to be an entrepreneur runs deep among
Canadians. Almost half of those who do not already operate a business say
they are interested in started one.
On average micro business owners are male (77%) and between the ages of
40 and 49 years old (38%) however individual industry sectors influence
gender and age. For example 41% of owners in the accommodation and other
services sector are women while 44% of micro business owners in the health
and social services sector are 50-59 years old.
Education is a significant factor for some sectors (e.g. business and
financial services) but overall less than half (44%) of micro business
owners have a post secondary education.
So why start a micro business? Nearly 1 in 2 owners started their
business to become their own boss. Many had role models to follow. 49% of
micro business owners have a close relative such as a parent or sibling
who owns a business.
There is also the dream of working from home! Overall 46% of micro
businesses are home-based. This represents a significant increase from
1996 when only 30% were operated from home. Specific industry sectors
greatly influence the likelihood of working from home. The most likely
home-based businesses are Agriculture (81%), Construction (74%) and
Business Services (47%) with Retail being the least likely (15%)
Canadian entrepreneurs may dream of workplace freedom but they are
cautious. Only 30% said they were prepared to risk major personal assets
to make their business grow.
Micro businesses have however had an impact on bank loans to the small
business sector. Between 1998 and 2000, the number of loans classified as
micro business (less than $25,000) rose by 9.8% vs. 1.3% for small
business ($25,000 to $500,000) and 4.8% for medium and large businesses
($500,000 plus).
In 2000 micro business loans represented 42.5% of all business loans
made in Canada, up nearly 2% of overall market share since 1998.
Micro businesses are putting that money to good use. Financial
performance is also showing improvement. Between 1997 and 1999 businesses
grossing under $500,000 in revenue saw their profit margins increase by a
full percentage from 1.9% to 2.9% as compared to the 0.4% increase
demonstrated by small businesses ($500,000 to $5 million revenue).
In 1997 (the most current data available) the average profit for micro
businesses in Canada was $11,000 or 16% of gross operating revenue. This
represents a real increase in profit over 1993 when the average was
$10,700 or 14.3% of gross operating revenue.
This profile is meant as a reality check and report card for micro
business in Canada. While perhaps straight "A"s are still in the future,
this exciting sector is showing considerable promise that needs to be
recognized as distinct and as dynamic as the small business sector at
large.
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QUICK FACTS ON LOCAL MARKETS
When you are starting a new business it is a good idea to get a quick
overview of your local market's demographics and economic performance.
There are a number of readily available resources you can consult to
achieve this.
At the Statistics Canada web site, highlight information from the 1996
is available for local communities. The mapping feature helps you to pin
point your market as well as neighboring markets. This data is strictly
demographic.
http://ceps.statcan.ca/english/profil/PlaceSearchForm1.cfm
The Industry Canada "Invest in Canada" web site provides links to local
community information in each province. Detail varies from province to
province however each profile generally provides basic demographic data as
well as information on utilities, taxation and community life.
http://napoleon.ic.gc.ca/scdt/bizinvst/interface2.nsf/engdoc/5.html
This site also has a section that provides economic data by major
metropolitan area. Most of the information is 1999 estimates.
http://napoleon.ic.gc.ca/scdt/bizinvst/interface2.nsf/engdoc/4.html
HRDC Labour Market Information is another source for local market data.
Data covered can include salary profiles, local economic data,
commentaries on local corporate expansion and closures etc. Locate your
local regional HRDC web site for further information on business
conditions in your market.
http://www.hrdc-drhc.gc.ca/menu/profile-search.shtml#profile
Also do not forget to look at your local municipal government web site.
Many municipalities use their web sites to attract businesses to their
community. They identify industry trends, market demographics, competitive
environment etc.
Most municipal government web sites use the following URL protocol:
http://www.city.markham.on.ca/
With "Markham" and "ON" changing to the appropriate community and
province.
Finally, the most up to date and easily accessible local market data is
the publication "FP Markets: Canadian Demographics". The latest issue
provides 2001 estimates of population demographics, retail sales, market
psychographics, economic performance etc. It is not available on-line but
it can be found in most reference libraries and business development
centres. You can also purchase it online at:
http://www.financialpost.com/product/markets.htm
When researching your market you will want to gather more detailed
information than the above sources provide. They do however provide you
with a solid starting point and give your a framework to make your own
forecasts and estimates.
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SMALL BUSINESS STATS FACTS
Each Business Researcher Newsletter ends with a collection of five
statistics that every entrepreneur should be aware of.
1. What percentage of the Canada Notebook market do Canadian Small
Businesses represent?
13%
Channel Business (May 21, 2001).
2. At Queen's University in Kingston, Ont. what % of the students
enrolled in the executive MBA program are entrepreneurs?
15%
"The motivation for most entrepreneurs is essentially to
professionalize their skills," says Dr. Danny Szpiro, director of the
Queen's EMBA program. "They are obviously bright and motivated, and
their individual needs are often specific to their experience, but the
common thread seems to be a realization that they need a broader set of
skills to bring their organization to the next level."
Source: National Post Sept 10, 2001
3. How much do small businesses use the Internet?
Business managers indicated a relatively low level of use of the
Internet by their businesses. People were asked to assess the extent to
which their business uses the Internet for business purposes, not
including employees using it for personal reasons (7-point scale: '1' is
not at all and '7' is a great deal).
Not only do almost half the population say they do not use it at all
for business purposes, about half of the rest report only minimal usage.
Only one-quarter provided scores above the mid-point on the scale (and
just 14% use it a lot, scores of 6-7).
This suggests that the relatively high levels of Internet access
reported by small businesses here (at the Strategis web site) and
elsewhere may significantly overstate the volume of business activity
actually pursued on-line by small businesses.
Industry Canada - Compas Research February 2001
http://strategis.ic.gc.ca/SSG/rd00081e.html
4. What activities have small businesses done online in the last year?
Sought business information 83%
Communicated with clients 77%
Bought products or services 50%
Visited government web sites 50%
Sold products or services 33%
Online recruitment 16%
Industry Canada - Compas Research February 2001
http://strategis.ic.gc.ca/SSG/rd00081e.html
5. What are the most important issues facing Canadian small business?
Business managers point to a considerable range of items when asked to
identify the most important issue or challenge facing their business at
this time. However, growth-related issues top the list.
1. Competition
2. Attracting new customers
3. Accessing capital/financing
3. Growth (how to grow)
5. Recruitment of new employees
5. Rising Costs
NB: There is a tie for number 3 and number 5
Industry Canada - Compas Research February 2001
http://strategis.ic.gc.ca/SSG/rd00081e.html
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