The impact of SMEs on the global economy is often overlooked, even though this sector accounts for a substantial share of the world’s GDP (Gross Domestic Product).
In Canada it is a common believe that large companies provide huge employment opportunities, however SMEs (Small-Medium Enterprises) are actually the largest job creators and the strength of country’s economy is crucially dependent on it.
With 1.15 million small businesses in the country, on average this sector contributes 55.32% to Canada’s entire GDP and 40.8% to the employment sector in all of Canada. As of 2019, small businesses employed 8.4 million individuals, or 68.8 percent of the total private labour force, according to the Government of Canada’s Innovation, Science and Economic Development – latest available Small Business Statistics – November 2019 edition.
Small businesses generally refers to organizations with 1 to 99 paid employees, where as a medium-sized business has 100 to 499 paid employees and to be considered a large company it must employ 500 or more paid employees.
As part of the federal government’s assistance to small business, earlier this year, the Former Minister of Small Business, Export Promotion and International Trade, Minister Mary Ng stated that there is a”to support small businesses so they can compete in the rapidly advancing digital economy and cited the $4-billion investment to create the Canada Digital Adoption Program that the government announced in Budget 2021.”
Apart from creating jobs, as stipulated above, below are various ways other was that smalls business directly impact the economy:
1. Improve local communities
When you spend $100 at a local business, $68 of it stays in your community. Spend $100 at a big-box retailer, and only $48 stays in the local economy. Those dollars add up. Whether you’re purchasing unique holiday gifts or household basics, money spent at mom and pop stores generates 3.5 times more wealth than shopping at large national chains. This is according to Amy Hartzler, director of communications for the Business Alliance for Local Living Economies, a non-profit that advocates building strong local economies, in a 2017 Forbes article.
There is always the opportunity fora small business to grow into a large business, bringing about higher employment rate, fuels innovation and keeping it competitive on the global stage.
IMMIGRATION AS A SMALL BUSINESS OWNER
The IRCC ministry created various entrepreneurship immigration streams, as part of their initiative to sustain and boost the booming business industry through immigration, while also creating new jobs for citizens and permanent residents locally.
The various entrepreneur and self employed programs, are aimed at at individuals with a mid-range personal net worth who intend to establish and operate a business in Canada, while the investor program is suited for high net worth individuals who wish to make a passive investment with no obligation to establish a business. Wealthy business immigrants may buy or establish a new business in Canada and qualify for a temporary work visa, under the federal ‘owner-operator’ policies in which after a period of time, applicants may qualify for permanent residence under a suitable immigration program.
Other business immigration offering permanent admission to Canada includes the Federal Start-Up Visa; Federal Immigrant Investor Venture Capital (IIVC) Pilot Program; Provincial Nominee Entrepreneur, Quebec Immigrant Investor Program (QIIP), Quebec Entrepreneur and Quebec Self-Employed Programs.