small business in canada

Doing Business in CanadaTrends and Prospects

Presented byAccounting Troubleshooters Network

Do you know that…..

Small businesses fuel the growth of Canada’s economic engine.

Small businesses generate between 60% to 75% of new jobs.

Many big businesses start small and grow to be giant firms.

Definition of small business

Is independently owned Is managed by owner or part owner Has less than 50 employees Has less than $2 million in annual

sales

Types of Businesses

Professional services Personal services Wholesale and retail Financial services Agency sales Food services

Statistics on Small Businesses

Self-employment is the fastest amongst young people aged 15 to 24 and seniors aged 55 and over.

“Seniorpreneurs” constitute 1 in 4 of self-employed people and over 30% of total workforce of workers aged 55+

Nature of small business in Canada

60% of small business owners are “in” for the lifestyles. They do not want to grow.

Growth of small business formation stronger in the west, and in urban centers.

Is being shaped by increased immigration, rise of internet use, and globalization.

Affected by demographics, in particular, the aging baby boomers.

Reasons for starting a business

Opportunity presented Passion and motivation Underemployment Lifestyle choice Satisfaction and self-fulfillment Leadership opportunities

Who are the business people?

Try making a guess!!

Who are these business people?

Starbucks was started in 1971 by three friends: Jerry Baldwin – English teacher; Zev Siegel – History teacher; Gordon Bowker – Writer

Tim Horton was started in 1964 by Tim Horton, a hockey player and joined in 1967 by Ron Joyce – former police constable

Is the business idea viable?

Is the investment in fixed assets or machinery small?

Is the product or service specialized?

Is it quick and flexible to meet demand?

Is the technology introduced neutral to economies of scale?

Characteristics of a strong business

Dynamic and flexible, must have ability to adapt, transform and re-invent

Access to capital through personal loans, bank loans

Management skills Economies of scale

Effects of increased immigration

20% of self-employed people are immigrants. (double the rate of 1980)

These immigrants have connections to their countries of origin

This translate to increased foreign trade in the form of imports or exports.

Small businesses – trends

INCREASED IMMIGRATIONNew immigrants bring about new

opportunities for small businesses.They have different tastes and

preferences. They have different lifestyles and

traditions.

Origin of new immigrants

9%Miscellaneous11%Africa11%Mexico/Carribean16%Europe2.5%Iran3%Korea5%Pakistan7%Philippines12%India14%China

Many successful immigrant/ethnic businesses

Kin’s Market Future Shop – started by Iranian Tom Lee Music H.Y. Louie- grocery wholesaler T & T Supermarket

The Bubble tea phenomenom

In 1983 Liu Han-Chieh introduced Taiwan to tapioca pearls added to infused tea and flavorings, and shaken well. It started with a small concession stand serving school children.

In Taiwan, one owner owns 450 bubble tea stores and in the Philippines, one owner owns 100 stores in a matter of 1-1/2 years.

Frozen prepared foods

highly stressed lifestyle experiment with new tastes/ flavor. Comfort goods /nostalgic reasons.

Frozen Filipino foods-USDA inspectedPronto Foods- Chicago

WORKING LIFESTYLES

Highly stressed working women wants to be pampered

What’s Hot and What’s Not

Tim Horton offers choices

Not so hot..

What’s Hot and What’s Not

More than Aerobics

Not so hot..

New technologies

Be aware of trends Keep ahead of the latest

technologies Anticipate changes

AGING DEMOGRAPHICS

Businesses that caters to the aging baby boomers born between 1946-1964.

FUTURE GROWTH BUSINESS

Mobile hairdressing (Au,UK, Kansas)

Mobile pet grooming

Help available for Small Businesses

Western Economic Diversification for market research, and market development

In the form of business events, seminars, loans, and grants (support contributions)

Program for Export Development (PEMD)

Help available for Small Businesses

IRAP – Industry Research Assistance programs from the National Research Council

Research grants for development and commercialization of new technologies

Youth Internship programs for new graduates

Help available for Small Businesses

SRDTC – scientific and research development tax credits

Tax credits for film and television productions

Export Development Corporation provides receivables management

Canadian Trade Commissions in foreign countries

Federal Development Bank

SUMMARY

To do business in Canada, you need

VISION Know where you want to be Know what sets you apart Have a plan and stick to it

SUMMARY

To do business in Canada, you need

MARKETING Get your message across Network as much as you can, Chamber of

Commerce, AFCA-BC…… Use cost-effective advertising, google

click per ad, online marketing, trade shows, newspapers

SUMMARY

To do business in Canada, you need

MANAGEMENT Observe trends Attend events and seminars Read business news and magazines Monitor company financial reports

SUMMARY

To do business in Canada, you need

SYSTEMS AND PROCEDURES IN PLACE

have a formula that allows for growth Good accounting systems and procedures Effective internal controls

SUMMARY

To do business in Canada, you need

FINANCE Access to capital Cash flow management Avail of government loans and grants

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