Small Business Profile 2013 is the latest updated version published annually by the British Columbia provincial government to answer some common questions about the role of small business in British Columbia through an examination of trends in growth. Key indicators examined in this report include the number of businesses, employment and earnings, contribution to the economy, industry distribution, regional details, and the role of small business exporters.
Some of the key highlights of the profile are:
Small Business Growth:
There were approximately 385,900 small businesses operating in British Columbia in 2012, accounting for 98 per cent of all businesses in the province. About 82 per cent of these small businesses were micro-businesses with fewer than five employees. With 83.5 small businesses per 1,000 people, British Columbia ranked first in the country in terms of small businesses per capita in 2012. The national average was 69.0. At 5.3 per cent, the Thompson- Okanagan region recorded the fastest net growth in the number of small businesses between 2007 and 2012.
Small Business Employment:
There were an estimated 1,032,700 people employed by small business in British Columbia in 2012. These jobs accounted for 55 per cent of private sector employment in the province, where British Columbia was ranked second in the country, slightly behind Prince Edward Island, where small business employment represented just over 56 per cent of private-sector employment. Between 2011 and 2012, small business employment in British Columbia grew by 0.4 per cent, slightly faster than the national rate of 0.2 per cent.
Fastest Growing Industry:
The accommodation and food services industry was the largest provider of new small business jobs in British Columbia between 2007 and 2012. Employment in this industry climbed 5.2 per cent, creating approximately 4,600 new jobs over the five-year period.
On average, the self-employed tend to be older, are more often men and are more likely to work longer hours than paid employees. Approximately 38 per cent of the self-employed in BC are women, above the national average.Self-employed and employees differ significantly in terms of the usual number of hours worked per week. On average, the self-employed have much longer work days than employees. The average work week for self-employed workers in 2012 was 37.5 hours, compared to 34.8 hours for employees.
Contribution to the economy:
British Columbia’s small businesses generated approximately 26 per cent of the province’s gross domestic product in 2012, compared to the national average of 25 per cent. Comparing the earning of all provinces, in 2012, small business provided 31 per cent of all wages paid to workers in British Columbia, the highest share of all provinces.
Small Business Exporters:
British Columbia’s small businesses shipped approximately $12.2 billion worth of merchandise to international destinations in 2011, accounting for almost 42 per cent of the total value of goods exported from the province.Small business exporters in British Columbia are far less likely to be manufacturers compared to large businesses that export. In 2011, around 30 per cent of exporters with fewer than 50 employees were in a manufacturing industry, compared to 51 per cent of larger exporters.
Have you read the previous Business profile reports? If so, how do you feel about the results of the 2013 version? Does business profile report help you understand the small business market more?