Fact Sheet: Calgary Small Business C A LG A R Y C E N S U S M E T R O P O L I TA N A R E A ( C M A ) 2017 E D I T I O N R E S E A R C H & S T R AT E G Y P U B L I S H E D : M AY 1 7 , 20 1 7 Highlights enjoy the advantage of customer focus, sets them apart from larger corporations. Calgary small businesses account for 95 per cent of all businesses – they are a driving force within the city’s business community. Small businesses provide jobs for local residents and are important for the vitality of inner cities. Small business owners have the advantage over larger corporations in that their size gives them the flexibility to adapt quickly in terms of aligning resources. They are able to be innovative with products and implement processes and efficiencies. These advantages, married with their general passion for their business and ability to Business Counts Of Calgary’s total businesses (58,870) in 2016, small business (businesses with less than 50 employees) accounted for 95.2 per cent (or 55,972). A breakdown of Calgary’s small businesses by employee size demonstrates that the smallest segment (1 to 4 employees) is, in fact, the largest, at 37,077 businesses or 66.2 per cent. Calgary CMA Small Business by Number of Employees Total 55,972 5-9 Employees 8,817 16% 10-19 Employees 5,940 11% 1-4 Employees 37,077 66% 20-49 Employees 4,138 7% Source: Statistics Canada, December 2016 calgaryeconomicdevelopment.com | 1 Fact Sheet: Calgary Small Business, 2017 Edition Published: May 17, 2017 Small Business by Industry and Employee Size The dominant industries that made up Calgary’s small business sector in 2016 were: • Construction - 6,846 businesses (12.2 per cent of total share) • Professional, Scientific, and Technical Services - 12,087 businesses (21.6 per cent of total share) • Retail Trade - 4,559 businesses (8.1 per cent of total share) Small Business by Industry and Employee Size Calgary CMA, 2016 1-4 5-9 10-19 20-49 Employees Employees Employees Employees Industry Total % Distribution Agriculture, forestry, fishing and hunting 215 38 18 7 278 0.5% Mining, quarrying, and oil and gas extraction 685 152 147 124 1,108 2.0% 43 15 6 14 78 0.1% 4,727 1,073 616 430 6,846 12.2% Utilities Construction 607 307 259 255 1,428 2.6% Wholesale trade 1,053 568 441 323 2,385 4.3% Retail trade 1,737 1,399 931 492 4,559 8.1% Transportation and warehousing 1,743 242 146 123 2,254 4.0% 235 76 48 57 416 0.7% 1,156 277 188 193 1,814 3.2% Manufacturing Information and cultural industries Finance and insurance Real estate and rental and leasing Professional, scientific and technical services Management of companies and enterprises Administrative and support, waste management and remediation services Educational services 1,909 246 158 139 2,452 4.4% 10,274 900 561 352 12,087 21.6% 138 44 65 67 314 0.6% 1,536 511 287 241 2,575 4.6% 376 103 90 74 643 1.1% 2,669 755 498 280 4,202 7.5% Arts, entertainment and recreation 236 87 70 65 458 0.8% Accommodation and food services 691 808 823 640 2,962 5.3% 2,519 927 448 195 4,089 7.3% 20 6 8 11 45 0.1% 4,508 283 132 56 4,979 8.9% 37,077 8,817 5,940 4,138 55,972 100.0% Health care and social assistance Other services (except public administration) Public administration Unclassified Total Note: Data for Small Businesses by industry omits those which are deemed unclassified by Statistics Canada. Source: Canadian Business Counts, Statistics Canada, 2016 calgaryeconomicdevelopment.com | 2 Fact Sheet: Calgary Small Business, 2017 Edition Published: May 17, 2017 Small Business Per Capita Relative to its population, Calgary had the second highest number of small businesses per capita of the major cities in Canada in 2016 at a rate of 38.1 per 1,000 population. Exceptional quality of life. Calgary has ranked among the Top 5 most livable cities in the world every year since 2009 because of our economy, safety, infrastructure, social programs and a healthy lifestyle. Economist Intelligence Unit, 2016 Small Businesses per Capita Across Canada 45.0 40.0 38.9 38.1 35.5 35.1 35.0 33.3 29.2 30.0 27.9 Footnotes 25.0 24.7 1For the purposes of this publication, a small business is one that has between 1 and 49 employees. 20.0 15.0 10.0 5.0 0.0 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Source: Statistics Canada, CMA Population, 2016 and Canadian Business Counts, December 2016, Less Than 50 Employees (Per 1,000 Population) Self-Employment Highly educated, globally connected workforce. Calgary has the highest level of educational attainment of any city in Canada after only Ottawa. Calgary is a global city and one of the most ethnically diverse cities in Canada with a significant francophone population. More than 89,000 Calgarians are bilingual. NHS, Statistics Canada, 2011 In 2016, there were 127,300 self-employed Calgarians. On a per capita basis, Calgary had the third highest number of self-employed people of major cities in Canada at 86.6 per 1,000 population. During the past 10 years (2007-2016), Calgary experienced self-employment growth of 11.1 per cent. In 2016, the largest group of Calgary entrepreneurs were in the 45 to 54 age group (28.2 per cent share), followed by the 35 to 44 age bracket (24.2 per cent share). calgaryeconomicdevelopment.com | 3 Fact Sheet: Calgary Small Business, 2017 Edition Published: May 17, 2017 Self-Employed per Capita and 10-Year Growth 40% 88.2 90 37.8% 80 87.9 86.6 87.6 35% 76.3 73.9 70 30% 69.7 66.1 25% 60 50 20% 20.7% 40 15% 11.1% 30 10.6% 8.7% 10% 20 10 0 6.6% 3.9% 5% 2.1% Vancouver Edmonton Calgary Toronto Ottawa Montreal Alberta 10-Year Growth in Total Number of Self-Employed Number of Self-Employed per Capita (per 1,000 population) 100 0% Canada Source: Statistics Canada, 2016, per 1,000 Population Number of Self-Employed by Age Group 0 Ages: 15-24 Edmonton Ages: 25-34 Calgary Ages: 35-44 Toronto Ages: 45-54 Ottawa Ages 55-64 27,500 (10.3%) 74,500 (26.8%) 62,700 (23.0%) 67,400 (22.9%) 46,500 (14.4%) 9,200 (9.7%) 6,700 (2.5%) 24,000 (29.0%) 22,100 (21.0%) 17,200 (22.8%) 3,000 (4.1%) 10,900 (2.1%) 10,900 (8.7%) 32,500 (28.2%) 27,900 (21.9%) 32,500 (24.2%) 19,800 (14.8%) 3,600 (2.2%) 19,000 (21.5%) 9,200 (9.6%) 27,900 (25.0%) 24,600 (24.0%) 20,100 (17.6%) 60,100 (30.9%) Vancouver 2,100 (2.3%) 20,000 24,000 (10.3%) 40,000 4,800 (2.7%) 60,000 54,100 (18.0%) 80,000 31,200 (14.4%) 100,000 50,700 (23.6%) 120,000 13,700 (13.3%) 82,000 (14.2%) 140,000 51,400 (10.1%) 160,000 141,300 (27.6%) 180,000 125,300 (24.8%) 137,900 (21.2%) 200,000 Montreal Ages 65+ Source: Statistics Canada, 2016 calgaryeconomicdevelopment.com | 4 Fact Sheet: Calgary Small Business, 2017 Edition Published: May 17, 2017 Bankruptcies Calgary has experienced a steady decline in business bankruptcies historically, from a high of 419 in 2005 to 53 in 2016. Since 95 per cent of Calgary CMA’s businesses are small business, it is assumed that the majority of business bankruptcies involve small businesses. Calgary business bankruptcy rates are low compared to the Canadian average and other major cities in Canada. Of Alberta’s 121 business bankruptcies in 2016, 44 per cent were from the Calgary CMA. Calgary CMA Number of Business Bankruptcies 450 419 400 350 300 267 250 190 200 176 147 150 116 95 100 86 74 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 53 41 38 2014 2015 50 2016 Source: Office of the Superintendent of Bankruptcy Canada, Q4 2016 Business Bankruptcy Rates Across Canada 3.5 3.2 3.0 2.5 1.92 2.0 1.86 1.6 1.5 1.26 1.0 0.5 0.0 0.8 0.5 0.22 0.24 Vancouver 0.3 0.25 0.21 0.3 0.28 0.21 Edmonton Calgary Saskatoon 2014 0.85 0.7 0.41 0.43 2015 1.2 0.82 0.74 0.54 0.41 Toronto Ottawa Montreal Canada 2016 Source: Office of the Superintendent of Bankruptcy Canada, 2016, (Per 1,000 Businesses) calgaryeconomicdevelopment.com | 5
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