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SMALL BUSINESS MONTH - SUPPLEMENT TO THE FREE PRESS - SATURDAY, OCTOBER 17, 2026
KIRK HEWLETT / ADOBE STOCK
FACTS AND FIGURES ABOUT SMALL BUSINESSES IN CANADA AND THE U.S. A ccording to the World Bank, small and medium enterprises represent roughly 90 per cent of businesses and more than 50 per cent of employment worldwide. A weakened small Though they might be characterized as “small,” businesses with fewer than 500 employees have a big impact on the economy.
• Small businesses are also a significant driver of job creation in Canada. The Government of Canada reports that small busi - nesses were responsible for 69 per cent of the net employment change between 2020 and 2021. In the United States, the U.S. Bureau of Labor Statistics reports that small businesses created 12.9 million net new jobs between 1996 and 2021. • Despite their importance to local, national and global econo - mies, a high percentage of small businesses close within their first year of opening. In Canada, estimates suggest 21.5 per cent of small businesses close before the end of their first year. Com - parable data from the United States indicates that around 20 per cent of small businesses close within a year of opening. • Statistics Canada reports that small businesses employed 63.8 per cent of the Canadian workforce in 2021. In the United States, the SBA reports that 61.7 million Americans, repre - senting 46.4 per cent of private-sector employees, work for small businesses.
• Long-term survival rates also highlight the resilience and chal - lenges facing entrepreneurs. The Business Development Bank of Canada reports that nearly 68 per cent of new businesses remain in operation after five years, though Made in Canada reports that figure drops to about 33 per cent after 10 years. In the United States, BLS data indicates that just under 35 per cent of small businesses that opened in 2012 were still operat - ing a decade later. The data highlights the significant role small businesses play in Canada's economy and in communities across the country. Com - parable figures from the United States reinforce the broader impact small businesses have on employment, innovation and economic growth throughout North America and around the world. ●
business sector could put local, national and even global economies in jeopardy, which further underscores how vital small firms are to economic stability. Statistics don't tell the whole story about small businesses, but they can offer insight into the role firms with 500 employees or fewer play in the economy. In Canada, small businesses are a cor - nerstone of economic growth and employment. Comparable data from the United States further demonstrates how integral the small business sector is across North America. • The Government of Canada reports that, among the country's 1.21 million employer firms, 1.19 million are small businesses. Similar figures are reported in the United States, where the Small Business Administration indicates there were 33.2 mil - lion small businesses in operation as of 2022.
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