The following article gives some Information On Small Industries In Canada. According the Industry Canada (IC), the official website of the Ministry of Industry, Canada, and the Small industry is defined as a manufacturing or a service unit which employs 1- 100 individuals. This is further divided into 4 categories- 0- 4, 5- 19, 20- 49 and 50- 99. According the survey conducted by IC, in 2008 52% of employment in Canada was by the small industries (1- 100 employed units). Let us take a look at the dynamics of the small industry in Canada from the point of view of employment, main industry categories and financing options for entrepreneurs.
Industry wise comparison of Small Businesses in Canada:
Referring to the survey carried out by IC on Small Businesses in Canada, the highest number of micro establishments is in the technical services, professional and scientific services (74.3%), and the agriculture, fishing and forestry produce (at 71.3%). The other main contributors are the retail trade, construction, healthcare, and social services sector. Public administration and the utilities sectors are the lowest contributors in the micro industry sectors.
Approximately 60% of the small businesses are into service delivery and the rest 40% or less are into manufacturing of goods. The survey also goes on to show that the “birth rate” of small industries is higher than the “death rate” which essentially points out to the fact that the micro establishments are a largely successful pool and the industry constantly replenished with new entrepreneurial ventures.
Employment creation by Small Industries
As stated previously, small industries are one of the largest employment generators in Canada. According to the Survey of Employment, Payrolls and Hours (SEPH) survey data, more than 5.2 million individuals are employed by the small scale industry in Canada. This number only represents service and manufacturing firms and does not include self employed people or people involved in the agriculture, fishing, military personnel or people involved with religious organizations. This is by far much higher when compared to the mid sized (100- 499 employees) or the large establishments (>500 employees).
Small Industry Business Financing Program, Canada
Post the Canada Small Business Financing Act in April, 1999, the government of Canada has launched the hugely successful Small Industry Business Financing Program to help development of small businesses. The main objectives of this program are to identity and assist small business establishment and expansion. It also aims at creating easy access to financing for the entrepreneurs which would in turn create employment in the country.
Loans of up to $500,000 are made available to entrepreneurs from all industries with the exception of agriculture, religious organizations, and non profit and charitable establishments. As per mandate, these loans can be used for purchase of fixed assets (like land, building, equipment) only and not for working capital, goodwill, inventory, research or development.