British Columbia Small Business Proﬁle 2008

BritishSmall BusinessColumbia Profile 2009

2009: Edition Profile of Small Business in British Columbia British in Business Small of Profile A October 2009 Small Business Profile British Columbia Small Business Profile 2009 www.bcstats.gov.bc.ca www.wd.gc.ca www.gov.bc.ca/sted following web sites: This isalsoavailable publication electronically onthe www.wd.gc.ca Toll Free: 1888338-9378 Telephone: 604666-6256 Vancouver, B.C. V6B 5G9 Suite St. 700–333Seymour Western Economic Diversification Canada can befoundat: and services onfederalInformation government programs www.gov.bc.ca/sted Fax: 250925-0113 Telephone: 250387-4699 Victoria, B.C. V8W 9N3 Box 9822StnProv Govt Small BusinessBranch and Economic Development of Small Business,Ministry Technology can befoundat: and services onprovincialInformation government programs www.bcstats.gov.bc.ca Telephone: 250387-0327 Victoria, B.C. V8W 9V1 Box 9410StnProv Govt 553 SuperiorSt. Data Services BC Stats relatedStatistics to smallbusinessare available at: www.smallbusinessbc.ca Toll Free: 1800667-2272 Telephone: 604775-5525 Vancouver, B.C. V6B 1G1 601 West Cordova St. Small BusinessBC businesses can beobtainedby contacting: on programsInformation forsmall and services Technical Notes 6. SmallBusiness Exporters 5. Regional Focus 4. Industries DefinedSectors andSpecially Growth 3. Contribution totheEconomy 2. SmallBusiness Employment 1. SmallBusiness Growth Highlights Small BusinessSuccessStories Preface Contents 25 30 27 21 17 2 9 3 1 1 British Columbia Small Business Profile 2009 Page 1 is an update is an update Small Business Profile 2009: A Profile of Small Business in British Columbia 2009: A Profile Small Business Profile A Profile of Small Business in British Columbia in British Business of Small A Profile Preface of previous versions published annually since 1997. The 2009 report reflects data from 2009 report from reflects data The 1997. published annually since versions of previous report is designed to This available. are for which data year 2008, the most recent Columbia of small business in British about the role questions some common answer with comparisons when possible, and, in growth of trends both an examination through in this report include the number of small addressed indicators Key other provinces. impacts, small business economic earnings, and in employment growth businesses, industry business exporters. of small distribution, and the role Canada Statistics by provided data from BC Stats by prepared was information Statistical and Payrolls the Survey of Employment, Register, including the Business databases Survey and the Exporter Registry. the Labour Force Hours, and provincial the federal by produced is jointly 2009 Small Business Profile Ministry Columbia in the British of BC Stats by report prepared was The governments. and the Canada Diversification Economic ServicesWestern in partnership with Citizens’ Development. and Economic Technology Ministry British Columbia of Small Business, For the past 12 years, the Small Business Profile has reported on the small business Profile the Small Business the past 12 years, For such as small business growth, using measures Columbia in British climate the report the statistics, to as a complement year, This and GDP. employment and inspiring innovative visionary, provide small businesses that eight highlights Small business is an engine of British its best. at of entrepreneurship examples making it among the many are and these small businesses economy, Columbia’s happen. Small Business Success Stories Small Business Success Page 2Page 2 British Columbia Small Business Profile 2009 For more information onincorporation, pleaseseepages13-14. Source: Statistics Canada /Prepared by BCStats in British Columbia, 2008 Number ofself-employed businessowners Source: BCStats usingdata suppliedby Statistics Canada since theyare already includedinthecount ofbusinesseswithfewer than50employees. † Incorporated self-employed are notincludedinthisfigure inorder to avoid double-counting, British Columbia, 2008 Breakdown ofbusinessesin oa ag uiess ,0 2% 7,000 Total allbusinesses 98% Total largebusinesses 384,300 Total smallbusinesses e et4%60% 40% 134,900 Per cent 39,300 Total 95,600 Withpaidhelp employees Businesses withlessthan50 paid help Self-employed without help Without paid † ‡ 7,0 5,0 425,600 290,700 255,600 216,300 170,000 74,400 noprtdUicroae Totalself- Unincorporated Incorporated 9,0 100% 391,300 43% 55% 168,000 216,300 businesses Number of of total Per cent 100% employment Highlights ` ` ` ` ` ` ` ` ` from the province.from representing justover 38 cent per ofthe total value ofgoodsexported $11.9 billion ofmerchandise worth to international destinations in2007, Exports 2008. inthenumber ofsmallhighest netgrowth 2007 businesses between and Focus Regional 96 percent ofall high technology businesses. British Columbia’s hightech sector High Technology Sector 2008, thehighest ratio ofany province. Columbia’s wa Product GrossDomestic Gross DomesticProduct –Approximately 34percent ofBritish Columbia are women, onpar withthenational average. employees. Approximately 34percent menandaremorelikelymore often to thanpaid work longerhours Self-Employed the national rate of0.8 percent. Columbiaemployment inBritish grewby Employment Growth employment. private sector where small business employment represented over just 56 percent of British Columbia second inthecountry, atouch behind Saskatchewan, under 56 cent per employment ofprivate sector intheprovince, ranking small business inBritish Columbia in2008. Thesejobsaccounted forjust Employment behind at 78.0 businesses per1,000 people. Thenational average was70.3. businesses per 1,000 people at 87.5, butthird-ranked waswell Alberta businesses in2008. percapita Saskatchewan had marginally fewer small people, British Columbia interms rankedinthecountry ofsmall first Per CapitaSmall Businesses were micro-businesses withfewer than five employees. businesses intheprovince. About82 percent ofthesesmall businesses operating inBritish Columbia 2008, in accounting for98 percent ofall Business Small –British Columbia small businesses shipped approximately – Therewere an estimated 1,058,100 people employed by – On average, the self-employed tend tobe older, are – Therewere approximately 384,300 small businesses – At 8.2 percent, theCari – Between 2007– Between and 2008, small business – There were almost 8,500 small businesses in – With87.7 small businesses per1,000 in 2008, encompassing approximately oftheself-employed inBritish s generated by small business in bysmallbusiness s generated 1.0 per cent, slightly fasterthan boo regionrecorded the British Columbia Small Business Profile 2009 Page 3 Per cent of total % change Annual growth rate Number of businesses 313,800 82% 384,300 100% -400 -0.1% 100 2.1% -500 -0.1% Annual growth (#s) 2007165,500 2008 219,300 168,000384,800 216,300 1.5% 384,300 -1.4% -0.1% Total all businesses Total large businesses Businesses with 20-49 employees 300 2.1% Businesses with 5-19 employees 1,000 1.7% Businesses with 1-4 employees 1,200 1.3% Self-employed without paid help -3,000 -1.4% Total small businesses† Small businesses with employees Self-employed without paid help Total Small Businesses Total businesses with 0 to 4 employees Self-employed without paid help Businesses with 1-4 employees 216,300Businesses with 5-19 employeesBusinesses with 20-49 employees 97,500 56% 57,400Total small businesses 13,100 25% 15% 3% † Figures do not add due to rounding do not add due to † Figures Canada Statistics by supplied using data BC Stats Source: 1.3: Figure Growth Columbia in number of British 2007-2008 businesses, Number of small businesses in British Columbia, Columbia, in British small businesses Number of 2007-2008 1.2: Figure Size distribution of small businesses 2008 Columbia, in British † Figures do not add due to rounding do not add due to † Figures Canada Statistics supplied by using data BC Stats Source: Source: BC Stats using data supplied by Statistics Canada Statistics supplied by using data BC Stats Source: Figure 1.1: Figure 1 Mallet, Ted. (July, 2009). Business Barometer Index: Monthly Results of June 2009 SME Business Outlook Survey. Canadian Federation of Independent Business. of Independent Federation Canadian Results of June 2009 SME Business Outlook Monthly Survey. Index: 2009). Business Barometer (July, Ted. Mallet, A total of 391,300 businesses were operating in British Columbia in 2008. Of those, in 2008. Of those, in British Columbia operating of 391,300 businesses were A total of all than half (55 per cent) More small businesses. (384,300), were 98 per cent individuals with no paid help. self-employed run by were businesses in the province and Ontario (57 Manitoba Saskatchewan, had a higher percentage: provinces Three with entrepreneurs by of businesses operated average national The each). per cent 53 per cent. in 2008 was no employees How many businesses operate in British Columbia and is that Columbia in British businesses operate many How number growing? What is a small business? and study its scope must be defined to business” “small of concept The the most common define a small business, to methods exist Several development. a small business Columbia, In British of which focuses on the number of employees. a person by or a business operated than 50 employees, is defined as one with fewer and without paid help. who is self-employed , are useful subjective Index, are Business Barometer surveys, such as the CFIB’s from Data it is equally important to However, of the health of small business. measures GDP and employment, – such as business counts, objective measures more examine similar picture a of small business. see if they paint – to revenues 1. Small Business Growth Business Small 1. creation job in strengthening role a key play to business sector small continues The primary of provider It is the province’s in British Columbia. growth and economic economic reflecting an important toward sector jobs, trend and ongoing private of business is also a vital source Small economy. within the provincial diversification businesses in British Columbia all high technology nearly example, for innovation; in 2008). 96 per cent small businesses (approximately are impact has had a profound on in entrepreneurship growth historical province’s The the country across downturns economic Despite recent landscape. its economic report to continue small business owners British Columbia’s the world, and around a survey to of its members, According for the future. high expectations relatively reports business that (CFIB) Business of Independent Federation the Canadian that and above average is higher than the Canadian in British Columbia confidence the country’s including Ontario and Quebec, which have other provinces, of several economies. provincial largest two 1 Page 4 British Columbia Small Business Profile 2009 t"CVTJOFTTPQFSBUFECZBTFMGFNQMPZFEQFSTPO t"CVTJOFTTXJUIGFXFSUIBOFNQMPZFFT A micro-businessisdefinedasasmallbusinesswith A smallbusinessinBritish Columbia is Self-employed individualsare Self-employed A corporation iscreated (incorporated) by fewer thanfive defined as: Incorporated businessesconsist ofthose and where thetiebetween membersneednotbea Self-employed workers. without paidhelp(i.e., working alone).This division Unincorporated businessesconsist ofthosenot Unincorporated businesses organized andmaintained aslegalcorporations. organized andmaintained aslegalcorporations operating withpaidhelp(i.e., withemployees) or dividedbetween those classifications canbefurther either incorporated orunincorporated. Eachofthese common stock. corporation, asrepresented by Incorporated businesses Incorporated most oftheirworking hoursoperating theirown more shareholders whohave businesses. The produces fourmajorcategories ofself-employed legally-enforceable contract. with nopaidhelp employees. self-employed canbecategorized as ownership ofthe thosewhospend theirpossessionof oneor

Statistics Canadahaschangedthemethodusedto entity that:entity cent for inthedifferenceoccurs by counts are With therelease ofthe2008data, theconceptofa'statistical location’ data here reported are year-over-year comparison. will behigherthanwould ifthestatistical establishmentframework bethecase was actual businessunits. isadoptingthenewmeasure Thisactual as2008willbethe report and for small businessesinBritishColumbia isanadditionofaboutthree percentover still inuse. Basedonthedata for single geographiclocation at to Due that was businesses withbetween 20and29employees. number ofestablishments, orjustinexcess variation of5,000businesses. Significant prior to business location countswas publication. Previously, theconceptofa'statistical establishment'was introduced. The last year for thischangeto (c) (b) doesnotcross provincial boundaries;and (a) produces ahomogeneoussetofgoodsorservices; which,at 2007are businesseswith50ormore employees to used. Statistics Canadadefinedastatistical establishmentasaproduction provides data onthevalue ofoutputtogether withthecostofprincipal intermediate inputsandlabourresources usedtoproduce theoutput. counts andestablishmentcounts counts Per asuperiormeasure. consequenceofthischangeisthat One location data 10 0 2 4 6 8 whichestablishmentcountswillbepublished, thelocation andbecause % Source: Statistics Canada cent difference between business location businesslocation centdifferencebetween location, asastatistical unit, isdefinedasaproducing unitat notavailable, andtheonlytimeseriesanalysispossiblewillbea aminimum,employment data are - - 01 02 04 50+ 30-49 20-29 10-19 5-9 1-4 2007 businesslocation counts, numberofbusinesses thereported inconsistent withfigures inearliereditionsofthis reported 2008 businesssize, rangingfrom anadditionofonly0.1per made because theyprovide madebecause abetter measurement of which, or from which, economic activity is conducted isconducted which,orfrom which,economicactivity 2007and2008,thedifference inthenumberof Employee Class those abouteightpercentfor measure businesscountssuchthat available. The changeto was themeasure

a the British Columbia Small Business Proﬁle 2009 Page 5 estate l l rea and 2.9% 5.4% Primary insurance Manufacturing Other 15.4% 15.1% inance, F Construction . .R.E .I Note: F 5.5% Services 20.3% ransportation & Utilities T Statistics Canada Statistics Statistics Canada Statistics Business rade T 12.0% 0% 5% 10% 15% 20% 25% .

ood ood rade otal 216,300) T Other .I.R.E T F otal 168,000) T Services Primary Services Services Services Services state nsurance & E 2.6% 3.7% 8.6% Construction Social Real 8.6%

Social Manufacturing

ducation E small businesses with 0-49 inance, I Business ducation th & F & F Accomodation & EmployeesPaid ( E otal: 384,300) th & T eal 1-49 Employees ( No ( 2008 industry, H & F Accomodation & eal H ransportationities & Util by supplied using data BC Stats Source: Figure 1.4a: 1.4a: Figure employees, with and without Small businesses, by Total 2008 employees, Figure 1.4b: Figure Source: BC Stats using data supplied by using data BC Stats Source: T

the in the have a made wholesale a drop in a drop among those were 313,800 businesses or more employees employees or more classified as micro- of the province’s small of the province’s an annual net increase entirely due to entirely paid employment. Given the Given paid employment. in both of those years (4.2 in both of those years staff. be providing a service as large be providing have (a net addition of about 300 new into translated in the province are of all businesses in the province of small businesses consisted of self- of small businesses consisted were There employees. slight decline was slight 2.1 per cent of the province’s small businesses. of the province’s Business services, which include occupations such Business services, which include occupations rates unemployment to likely more more prevalent in businesses with no employees, in businesses with no employees, prevalent more may some workers in 2008), suggesting that For with no paid help. person a self-employed notable growth. Between 2007 and 2008, businesses notable growth. by followed small businesses, of the province’s decrease in the total number of small businesses number of small businesses in the total decrease This four employees. Businesses with five four employees. self-employed individuals with no paid help. Businesses with individuals with no paid help. self-employed the employee workforce as business operators began offering began offering as business operators workforce the employee decline offset increases in businesses with employees, in businesses with employees, decline offset increases This half (56 per cent) 4.6 per cent saw contrast, 20 per cent four employees, with a net addition of 1,200 businesses (an increase (an increase with a net addition of 1,200 businesses four employees, 49 staff represented the fastest-growing segment of the small business segment the fastest-growing 49 staff represented The 2007 and 2008. between in 2007 to into been enticed slight decline in the small business count slight total number of small businesses operating in the province inched down 0.1 inched down in the province operating of small businesses number total which sectors are small businesses concentrated? of 2.1 per cent. employed persons without paid help, while a quarter (25 per cent) persons without paid help, employed among losses from resulted decrease This 500 businesses. loss of approximately by businesses operated by employees, of actual most new businesses werebusinesses). In terms numbers, with one to down, slowed in the province business growth small overall While of 1.3 per cent). saw employees) businesses (those with 50 or more large The with 20 to by expanded segment This sector. up of those with one to less than 20 per cent represented are and accountants, as lawyers small business service sector, the largest concentration is in business services, which concentration the largest small business service sector, overcontains with 12 per cent. trade and retail are in trade while firms involved In of activities, including engage in a range Small businesses in British Columbia and small programmers, computer self-employed stores, corner family-operated Almost 75 per cent industrial operations. to with small businesses just as likely service sector, businesses. for small businesses both with the industry 1.4a and 1.4b show breakdown Figures by and as operated employees fitting this description in 2008, accounting for 82 per cent fitting this description in 2008, accounting over Well businesses. What is the size distribution of small businesses? distribution of small What is the size are the small businesses in British Columbia most of By far, to shifted and stable economy of the advantage taken than five businesses: those with fewer The per cent the number of self-employed unincorporated small businesses with no paid help, help, with no paid small businesses unincorporated of self-employed the number of 1.4 per cent. a drop 1.5 per cent. which rose low with the markedly coincides may labour shortagessignificant workers and 2008, some self-employed in 2007 per cent have better compensation and/or benefits in hopes of luring more workers. and/or benefits in hopes of luring more compensation better Page 6 British Columbia Small Business Profile 2009 Source: BCStats usingdata suppliedby businesses per1,000 population, 2008 Western Canadagenerallyhasmoresmall Figure 1.6: Source: BCStats usingdata suppliedby employees, 2008 Small businessesby Figure 1.5: 100 T 10 20 30 40 50 60 70 80 90 &Utilities ransportation H 0 you Did British Columbia hasmore smallbusinesses per capita thanany eal Accomodation & F Small businessper1,000population,2008 th & E F ducation inance, I aSs Man Sask Alta BC Business

Manufacturing l Social & Construction Real know? nsurance Services Services Services Primary E Other T state rade ood %2%4%6%8%100% 80% 60% 40% 20% 0% otherprovince. No Paid E industry, withandwithout Statistics Canada Statistics Canada mpl Ont oyees 7 0.3 = u BN PEI NS NB Que

Canadian 1-49 Employees average NL 1,000 people. only otherprovince to employ staffandonly25percent contrast, ofsmallbusinesses inaccommodation andfood, aboutthree-quarters businesses are employees. For without employees, whileotherindustriesconsist largely ofbusinesseswith Within thesmallbusinesssector, someindustriesare concentration sector. ofsmallbusinessesamongindustriesoutsidetheservice smaller operationsindustries, andsocontains thanmostmanufacturing thelargest followed by Saskatchewan (87.5smallbusinessesper1,000people)was among theprovinces in2008,boasting87.7smallbusinessesper1,000people. terms ofbusinessespercapita.BritishColumbia heldonto Small businessesare other provinces? How per cent In thegoodssector, isthemostsignificant industry, construction accounting for15.1 doessmallbusinessinBritish Columbia comparewith ofallsmallbusinessesintheprovince. Construction ismore amenableto Alberta (78.0per1,000people).At Alberta comprised ofself-employed individualswithoutpaidhelp. By example, ineducation almost79percent services, more prevalent ofthecountry, inthewestern part at exceed theCanadian average of70.3smallbusinessesper have nopaidemployees. 77.1,Prince Edward dominated by itsfirstplace ranking right onitsheels, ofsmall businesses Islandwas leastin the

British Columbia Small Business Profile 2009 Page 7 www.eldoren.com For more information, please visit information, more For Eldoren Design Creek Dawson time. any and at place any can be successful you that is proof A booming northern company B.C. has changed the the dip in the economy Design, says of Eldoren CEO and president Currie, Gordon – but for the better. company design and marketing web Creek field for his Dawson playing the marketplace to adapted the company adding that Currie, says before,” busier than ever “We’re design. than web marketing of its business focus to shifting more by to on how guidance for marketing Eldoren turning to are As the 2010 Olympics loom, companies has Currie he says. event, for business opportunities the international will spin from that prepare while development and website starting training offering Internet by been in business 21 years, (both Myst and River for games like gaming communities mixing in some fun building computer Inc.). of Cyan trademarks and its servicesVictoria, and Area San Francisco/Bay Toronto, in offices has satellite Eldoren Today e-commerce and specialized hosting/domains, web digital imaging, business consulting, extend to and its impressive Eldoren, to credited are websites than 275 commercial More consulting. industry, tourism financial service game industry, sector, the computer from list is drawn client relationship-building, to success Eldoren’s credits Currie sector and entertainment field. automotive service His customer must be part people. commitment of it as well. with talented and working hours. ten in six to a response is promised contacting the company Anyone Page 8 British Columbia Small Business Profile 2009 such wonderful experiencessuch wonderful with nature.” To methegreatest motivation isinknowing bringsomany ourproducts peoplearound theworld marketplace. Passion alsoplays arole. “Our staffkayak forrecreation andoften kayak right to work. Simpson credits hissuccess to hissmall, highly-skilledteam, whichcanrespond nimblyto the international accolades foritsinnovative craftsmanship. designsandquality America. in North Today to thecompany more exports than20countries andcontinues to earn further, allFeathercraft are products hand-madein Vancouver usingonlymaterials manufactured company intheworld to boastzero emissions. production To reduce itsenvironmental impact Feathercraft alsocreated ahot-airwelding technique to binditsfabrics, makingitthefirstkayak responsive, boats we’re durable andportable known fortoday.” the firstfoldableboats –madeoutofwood inGermany in1908–andbrought aboutthe “We were thefirstto usealuminumaircraft tubingforframes,” saidSimpson. “This revolutionized McCarthy. founded Feathercraft at aGranville hecontinues Islandfacility to operate today withwife Theresa Arctic’s device: iconic thekayak. transportation By 1977, withapatent approved, Simpson had Simpson’s questto prospecting access hard-to-reach areas gothimthinkingaboutimproving the back withinstead was arevolutionary designforlight-weight foldablekayaks. As aprospector intheCanadian Simpsonsetoutinsearch Arctic, Doug ofminerals. What hecame Vancouver Feathercraft www.feathercraft.com For more information, pleasevisit British Columbia Small Business Profile 2009 Page 9 NL Per cent of total 56% 23% 33% 44% 100% 46% Small Business Sector ic 18% Publ average Que NB NS PEI Canadian

Employment 1,058,100 428,300 1,892,800 Ont 49.1% = Statistics Canada Statistics Statistics Canada Statistics Statistics Canada Statistics 2008 Business 36% Large Alta Sask Man BC size of business, of size Employment - 2,314,200 Employment BC Total Total small business employment Self-employed Employed by small businessLarge business employment 629,800 Total private sector 834,700 employment 0% 70% 60% 50% 40% 30% 20% 10% Figure 2.3: Figure ranks Columbia British small business second in sectoras a per cent of private 2008 employment, supplied by using data BC Stats Source: by supplied using data BC Stats Source: 2.2: Figure sector Private Columbia in British employment by Figure 2.1: Figure in were Columbia all jobs in British half of Nearly in 2008small business by supplied using data BC Stats Source:

that that both increase increase xample, xample, of at e between between over 2.4 per cent. in 2008, due to growth growth This Edward Prince of private sector of private in small business, a in small business, were was expansion dip in 2006. Although self- of 0.8 per cent. and self-employment, which and self-employment, of the province’s 2,314,200 jobs. 2,314,200 jobs. of the province’s nearly 56 per cent. while Saskatchewan ranked third (55 per third ranked while Saskatchewan remaining 44 per cent remaining the other hand, provinces such as provinces the other hand, increases pushed overall small business pushed overall increases These this total, 56 per cent this total, of total private sector employment, while 33 sector employment, private of total Island rely heavily on agriculture, an industry on agriculture, heavily Island rely half (46 per cent) 56 per cent, about 49 per cent. at stood average 2007, when the national a slower pace in 2008 than in previous years, the province had the province years, in 2008 than in previous pace a slower just over approximately 1,058,100 jobs in small business in British 1,058,100 approximately annually, aside from a 0.5 per cent aside from annually, rate a growth 2002, self-employment Since has enjoyed smaller operations with fewer employees. with fewer smaller operations unchanged from 2007, and has remained relatively stable in recent relatively has remained 2007, and unchanged from employees of large businesses. of large employees rate growth the national above slightly worked for a small business. The for a small business. worked many jobs does small business provide in British in jobs does small business provide many and Newfoundland and Labrador, fourth Ontario (45 per cent) (52 per cent). and Newfoundland and Labrador, over solid growth also showed Small business employees period. the five-year Small Business Employment Business Small private sector employed 1,892,800 people in British Columbia in 2008 (including 1,892,800 people in British Columbia sector employed private 52,000 more self-employed workers in 2008 than in 2003, a 13.8 per cent workers self-employed 52,000 more least 3.0 per cent at grew employment over the same span, jumping 11.6 per cent. up 12.5 per cent and employees) (including self-employed employment same period. 2003 and 2008. Employment in large businesses jumped 17.0 per cent in large 2003 and 2008. Employment cent) to eased in 2008 compared Canada’s regions differ significantly in economic structure, a likely cause of much a likely structure, in economic differ significantly regions Canada’s For among the provinces. in small business employment of the variation Island ranked first at Island ranked while sector employment, on small business for private reported the least reliance at stood average the national manufacturing large businesses, from on employment dependent Ontario is more On particularly sector. in the automotive Edward and Prince Saskatchewan expanded in British Columbia Between 2007 and 2008, small business employment 1.0 per cent, by characterized British Columbia’s small business employment compares employment small business Columbia’s British of private in its share among the provinces second ranked In 2008, British Columbia at small business, from sector jobs stemming Columbia? wereIn 2008, there close to representing Columbia, was share This years. The Of businesses). both small and large 2. How ratio that has remained essentially unchanged for the past decade. Self-employed unchanged for the past decade. essentially has remained that ratio for 23 per cent accounted workers per cent Small business employment in British Columbia climbed 1.0 per cent in British Columbia Small business employment were workers The of growth. year consecutive marking the seventh 1.2 per cent, which grew small business employees, 0.7 per cent. rose favourably with other provinces favourably Page 10 British Columbia Small Business Profile 2009 Source: Statistics Canada /Prepared by employment by Self-employment asapercentoftotal Figure 2.5: Source: Statistics Canada /Prepared by of total employment, British Columbia’s self-employment asapercent Figure 2.4: 10% 15% 20% 10% 15% 20% 0% 5% 0% 5% aSs Man Sask Alta BC 2003 2004 province, 2008 BCStats BCStats 2003-2008 0520 2007 2006 2005 Ont u BN PEI NS NB Que 15.4% =

Canadian average 2008 NL of self-employed workers (11.0percent) In therest ofthecountry, NewfoundlandandLabrador hadthelowest proportion saw industry construction workers industry. intheconstruction between Infact, 2003and2008, theprovince’s may large ofself-employment proportion activity. hassince slowed, Althoughconstruction theprovince’s comparatively- areas ofBritishColumbia saw of self-employed individuals. Inpreparation forthe2010Winter Olympics, some The self-employed workers. experienced adeclineinthenumberoffarmers, resulting inalower of proportion and familybusinesses. However, over province’s reliance heavy onfamilyfarmingandthelinkbetween self-employment Saskatchewan hadlongbeentheleadingprovince inself-employment, given the ofself-employed workers,the proportion andmaintained thisstandingin2008. In 2007,BritishColumbia displaced Saskatchewan asthetop-ranked province in well above thenational average of15.4percent. British Columbia’s share ofself-employed workers was total employment, almostunchangedfrom 2007(18.8percent). Andlastyear, over their own individuals–thosewhospendmostof theirworkingSelf-employed hoursrunning self-employed? oftotal employmentWhat iscomprisedofthe proportion Self-Employment in2009. opportunities aswell. other sectors andprobably employment affected activities growththe demandforconstruction in The easedinthelatterother projects halfof2008,whichlikely tempered overall growth. business employment lastyear. However, buildingintentions forbothhousingand that beganinBritishColumbia in2005may Prince Edward leading overall at fourotherprovincesOnly exceeded thenational average in2008,withAlberta Canadian average. the onlyotherprovince besidesBritishColumbia andSaskatchewan to construction industry isanotherarea that tends industry to construction globaleconomic downturn that beganmid-way through 2008likely influenced thepastfive businesses–have IslandandSaskatchewan grew 1.0percent. years. accounted In2008,self-employment for18.5percent 1.7percent. The recession willlikely continue to self-employment surge self-employment 66percent. remained ofBritishColumbia’s asizeable part workforce a spike in housing and other types of construction aspike ofconstruction inhousingandothertypes Ontariorecorded growth of1.1percent thepast20years, Saskatchewan has in 2008, while Alberta (17.2percent) in2008,whileAlberta reflect the increased reflect demandforskilled have contributed to thehighestincountry, involve significant proportions dampennewemployment The construction boom construction thegrowth insmall exceed the andboth of wa s

British Columbia Small Business Proﬁle 2009 Page 11 Dec Nov 2008 Oct Sept Total Per cent Aug l Ju Without paid help Jun Statistics Canada Statistics BC Stats May 425,600 = annual average the course of the year, With paid help 134,900 290,700 425,600 100% eb Mar Apr F housands (#) Jan T IncorporatedUnincorporatedTotal self- 95,600employment 39,300 74,400 216,300 170,000 255,600 40% 60% 500 450 425 400 Figure 2.6: Figure business owners in self-employed Number of 2008 Columbia, British by / Prepared Canada Statistics Source: by supplied using data BC Stats Source: There was marked monthly variation in self- monthly There was marked overemployment Figure 2.7: Figure

choose self- much less than impact on people’s impact on people’s recorded in September in September recorded unincorporated individuals unincorporated self-employment not because of had its own the time. the time. to a higher propensity have fit their lifestyles, but because they are fit their lifestyles, in self-employment numbers, including in self-employment numbers, early in the year (approximately 403,300 (approximately early in the year still feeling the effect a labour crunch, of have for oneself can Working on employees. take least some influence on self-employment levels in the on self-employment least some influence levels 11,600 individuals) that occurred in 2007. A myriad of in 2007. A myriad occurred 11,600 individuals) that the employee workforce. Conversely, the economic the economic Conversely, workforce. the employee fast is this number growing? fast is this the ebb and flow had at with no employees. was increase This workers. 3,000 approximately other options. Still others turn to other options. have (or increase trend becomes more apparent when apparent more becomes trend This choose self-employment. an entrepreneurial spirit. an entrepreneurial or by the monthly breakdown of self-employment for 2008. breakdown the monthly earn a secondary may income were workers half of these self-employed to many self-employed people are there in British British are there in people self-employed many Over is not surprising, particularly is not surprising, when This with staff. than employers common more province. In particular, a tight economy and labour shortages and labour draw economy a tight can potentially In particular, province. into workers self-employed downturn in the latter part to in the latter of 2008 is likely downturn to tendencies to referring a low In 2008, self-employment reached was level while its highest province-wide), self-employed, highlights a stark monthly variation in numbers of self-employed last in numbers of self-employed variation a stark monthly highlights (454,100). This some people turned to times, economic in such unsure that imply which could year, of job security. or lack self-employment of layoffs the face in types of self- the different is found in examining pattern Another interesting sole operators in British Columbia, Among the self-employed individuals. employed are Many in the number of small businesses. growth with simultaneous it is coupled home. from often small businesses begin with one individual running the business, may owners As the business grows, or people retirees, Students, do not. other typesoffer flexibility that of employment Columbia and howColumbia in family businesses without 2,700 worked individuals and about paid self-employed pay. at of the region condition economic the overall landscape have and global economic national in the provincial, changes Recent At of self-employment in British Columbia. trend impacted the overall already was the outset of 2008, British Columbia to which is likely How were in 2008, of which 425,600 workers 428,300 self-employed had British Columbia to factors can contribute working on their own working the 2.8 per cent In 2008, the overall number of self-employed workers in British Columbia edged up British Columbia in workers number of self-employed In 2008, the overall 0.7 per cent, looking overemployment conditions in the wage-labour market, or to in the wage-labourconditions market, by compelled Page 12 British Columbia Small Business Profile 2009 Source: Statistics Canada /Prepared by average –British Columbia, 2008 Self-employed workers Source: Statistics Canada /Prepared by 2003-2008 paid helpthantherearethosewithemployees, asmany self-employedThere aretwice without Figure 2.8: Figure 2.9: 15-24 25-34 35-44 45-54 55-64 100 150 200 250 300 65+ 50 0 T Age housands Sel 0320 0520 2007 2006 2005 2004 2003 31% f- Employed 25% 20% 14% 7% BCStats BCStats 3% tend to be older, on 1% Sel Sel loyedf-emp withoutpaidhelp loyedf-emp withpaidhelp 12% 19% 22% 23% 23% E mployees 2008 common that and/or retirement apension asincentives packagewillact to decision-makers intheirbusiness. For business owners may this agerange. Conceivably, astheyreach potential retirement age, self-employed business owners are full-time jobto per cent self-employed individualswithoutemployees remained relatively unchanged(0.1 has climbedat With theexception ofthosetwo those withoutemployees), althoughmostofthat growth occurred in2004and2005. for olderworkers, may self-employment capital resources to versus employees. Many younger peopleunderthe ageof25lacktheskill-setand At entrepreneurs are per cent 17 percent while just46percent Over are longer hoursandare On British Columbia? What istheprofileofaself-employed in person higher rate number ofself-employed businessowners operating withstaffhasincreased at with paidhelp. This gap, however, appears to regardless ofincorporation status, was In 2008,thenumberofBritishColumbia’s self-employed withoutpaidhelp, socially pre-determined age. socially pre-determined leastacouple ofreasons exist forthevariance inageofself-employed people average, self-employed peopletend to employees. half(56percent) growth), whiletheself-employed withstaffincreased 0.9percent. ofemployees are (up17.5percent between 2003and2008,compared to ofself-employed businessowners are aslower pace thanthosewithoutemployees. In2008,thenumberof moving into aged55andover, start andoperate abusinessoftheirown. start On 65orover, lesslikely to bemore inclinedto ofpaidemployees fallinto ofBritishColumbia’s self-employed are underthisage. At retirement. Indeed, over whilelessthantwo years, thenumberofself-employed withpaidhelp beaboriginalpeoplecompared to compared to employees working forabusiness, itismore well over beusedasatransition from working at continue working astheyare beolder, are theotherendofscale, 27percent benarrowing. Inthelastfive twice thenumberofself-employed twice thisagecategory. Similarly, only only14percent undertheageof35,whereas 40 percent seven percent more often men,work ofemployees fallinto between 35and54, theotherhand, ofemployees. 12.8percent ofself-employed workers who themain years, the r etire at a a for

of a British Columbia Small Business Proﬁle 2009 Page 13

NL average Que NB NS PEI Canadian

Ont 34.4% = BC Stats BC Alta Sask Man 5% 0% 2008 Figure 2.10: Figure women, are who Proportion of self-employed by / Prepared Canada Statistics Source: 40% 35% 30% 25% 20% 15% 10% 65 years of age and older, thus prohibiting mandatory retirement. thus prohibiting of age and older, 65 years

persons who are

staff cover to pay 35.1 hours the recent 63.9, but and the fourth- average work work average 60.8 years, 60.8 years, more passion for a more on the age structure of be retirement-related. be retirement-related. have work longer hours. work be men or women, be men or women, in terms of the share of of of the share in terms work, lack capital to work, w to driven do extra to compared 39.2 hours, some self-employed business owners business owners some self-employed to equally likely of employees working that same amount. same amount. that working of employees be seen what effect, if any, be seen what 35and40hours ork between The of the self-employed. force on January the definition of “age” force 1, 2008, expanding are men. Although female entrepreneurs average, the self-employed work much longer work the self-employed average, were in British Columbia of all business owners an older median age than the overall workforce. workforce. the overall an older median age than more often male. In 2008, almost two-thirds (65 In 2008, almost two-thirds male. often more of self-employed people work 50 or more hours 50 or more people work of self-employed why explain 2 lack the staff to 55 years of age. One contributing factor One for the high contributing of age. 55 years made important strides in British Columbia’s business business made important strides in British Columbia’s at retire only four per cent only 30 per cent women. women. are and therefore themselves, on par with the national average of 34.4 per cent average on par with the national average work week for the self-employed has fluctuated only has fluctuated for the self-employed week work average retired or semi-retired from their salary-based their seek the from careers or semi-retired retired are self-employed among the provinces. British Columbia trailed New Brunswick (38.3 per trailed British Columbia among the provinces. more than a year (65.1 in 2000), while that for all workers has changed for all workers while that (65.1 in 2000), than a year more were self-employed of B.C.’s British Columbia recently adopted legislation, which came into legislation, adopted recently British Columbia was This women. highest rate and Ontario (34.5 per cent) Quebec (36.7 per cent), cent), by businesses owned self- between per week in the hours worked also exists difference A substantial On people and employees. employed 30 per cent Approximately days. to compared per week, environment. In 2008, 34.3 per cent environment. have women less common, per cent) (65 in British Columbia Most employees 2 those who are to compared per week, Another difference that emerges between self-employed persons and employees persons and employees self-employed between emerges that Another difference are employees While is in gender balance. per cent) in 2008 was workers for self-employed week Many who haveMany Generally, self-employment flexibility provides. and that sources income alternative to tend the self-employed the median retirement Meanwhile, 2007 (61.1 years). unchanged from relatively 64.6 to from dropping in 2008, decreased age for the self-employed since Interestingly, Canadian. average of the higher than that significantly remained has age for the self-employed retirement the median the beginning of this decade, declined by to (61.2 in 2000). It remains only slightly will have in British Columbia easing of mandatory retirement self-employed. the province's In British Columbia, self-employment as a percentage of all workers has been of all workers self-employment percentage as a In British Columbia, in self-employment a sharp increase In particular, in all age groups. steadily growing over for people has occurred may of self-employment among older Canadians incidence was retirees age for all Canadian In 2008, the median retirement for employees. In the past 10 years, this disparity has remained comparatively comparatively this disparity remained has In the past 10 years, for employees. Theunchanged. has for employees about 38 and 40 hours) while the average (between slightly 35 and 36 hours per week). approximately fairly stable (between also remained to exist possible reasons Several may They longer hours. work business they own overtime or in some cases, a self-employed individual may a self-employed overtimein some cases, or Page 14 British Columbia Small Business Profile 2009 British Columbia, 2008 Self-employed tend – towork longerhours Figure 2.11: exceeds the national average, 2003-2008 Self-employment in British Columbia growth Figure 2.13: employed comparedtonon-aboriginals, 2008-2009 Aboriginal peoplearelesslikely tobeself- Figure 2.12: Source: Statistics Canada /Prepared by Source: BCStats usingdata suppliedby Note: IncludesAboriginalslivingoff-reserve only Source: Statistics Canada /Prepared by -20% -10% per week Usual hoursworked 10% 20% 30% 41-49 35-39 30-34 15-29 0% 1-14 50+ 40

aSs Man Sask Alta BC 10% 15% 20% Self-Empoyed 0% 5% % self-emp 30% American Indian North loyed 23%

15% 10% BCStats BCStats Statistics Canada 9% 7% éi A Métis 6% 9.5% = Ont

Canadian u BN PEI NS NB Que ll Aborigina 4% 4% average 6% 7% 13% l 20% Aborigina Non- l E mployees

NL 45% over of12.3percent, Quebec degree thanthat experienced ofBritishColumbia. growth Alberta of13.3percent, the Canadian average alsodeclinedin2006(-5.4percent), andto likely dueto was British Columbia, over the province soared 13.8percent, employment growth. 2003and2008,thenumberofself-employed in Between Over compare withotherprovinces? How Aboriginal peoplelivingoff-reserve continue to than theBritishColumbia average of39 hours. self-employed workers inCanada isapproximately 41hours, almosttwo workers averaged 50hoursormore perweek in2008.The employed peopleinBritishColumbia. Across Canada, 33percent Nationally, self-employed Canadians putineven more hoursonaverage thanself- people whodefinedthemselves asMétiswere to 15.1 percent self-employed thannon-aboriginals. Intheperiodfrom April2008to per cent) previous year (13.7percent). employed Aboriginalswas Despite thelower overall rate 18.6percent seen—in2006,where easedslightly self-employment (-0.5percent), most thissametimespan,mostnotablyPrince Edward thepastfive doesself-employment inBritish Columbia growth thanthosewhowere the labour shortages experienced intheprovince thelabourshortages inthat year. That ofAboriginalpeopleinBritishColumbia were ofnon-Aboriginals whoworked forthemselves. Those Aboriginal years, BritishColumbia hasbucked thenational trend in self- thefive-year period, onlyoneexception to andOntarioof9.6percent. higherinthe2008/09fiscalyear thanthat recorded the ofself-employment, ofself- thetotal proportion classified as North AmericanIndian(13.9percent). classifiedasNorth well above thenational average (9.5percent). In more likely to besignificantly lesslikely to Several provinces lostground Islandat average work week for self-employed, compared beself-employed (17.1 a12.1percent ofself-employed notablegrowth amuchgreater March 2009, hoursmore be drop. said,

British Columbia Small Business Profile 2009 Page 15 For more information, please visit information, more For www.justbeginningsflowers.com Just Beginnings Flowers Flowers Just Beginnings Surrey – a major coup podium moment will be partIn 2010, Just Beginnings of every Flowers Olympian’s women. marginalized a hand up to give to created was that company florist training for the Surrey heartbreaking “It was to prison in 1990. started floristry teaching June Strandberg a women’s at she go,” for them to nowhere was There back. and then coming leaving see the cycle of women says. and finding training to is dedicated today which Just Beginnings Flowers, created So Strandberg experienced who have women prison, single parents, floristry from jobs for people returning them and train if I could “I thought abuse. drug and alcohol from and those recovering violence, big picture.” the beginning of my was That be a start. would that help them get working, started even and floristry and some have centres companies, found jobs in garden have Graduates for it takes the orders support from Community as evident businesses. has also been key their own and special events. weddings schools, Surrey of a the experience a partnership students forged will give that In 2008, Just Beginnings Flowers about Strandberg approached Flowers Margitta’s Vancouver’s Schulz of North Margitta lifetime. partnership strong bid to helped win them the The bidding on a job for the 2010 Olympic Games. on work expected to are students a dozen Up to bouquets for the event. athlete design and create change. for social and economic as a catalyst Just Beginnings Flowers cementing the project, Page 16 British Columbia Small Business Profile 2009 70 Mile House Siwash Lake Ranch planet.” otherbusinessesthat showto innovation support andleadershipinresponding to theneedsofour low environmental footprint,” says Rogers. “Our clients are excited aboutthework we doandwant “We’re proud to setanexample forothersmallbusinesseswanting to achieve bothgrowth anda renewable electricity. operation. The completely ranch now offthegrid, functions usingsolar power to generate itsclean, achieving thehigheststandards inenvironmental andsocialresponsibility through allareas of The Hotel Association ofCanada hasawarded Siwash Lake aFive Ranch Green Key eco-rating for the land. fishing, canoeingandfinedining. instewardship encourage guestparticipation Alltheactivities of of pristinewilderness, theranch offersguestsarange ofadventures includinghorsebackriding, fly programsconservation ontheproperty’s surrounding wetlands. Nestledamong32,000hectares our guests,” says Rogers, highlighting theranch’s andthelarger recycling andcomposting efforts of theiroperations. “Promoting harmony withnature isparamount to theexperience we provide Husband andwifeteam into AllysonRogersandRoy Grinderinfusesustainability allelements yet theall-inclusive produces resort onlyonebagofgarbagepermonth. It’s theonlyCanadian ranch to berecognized by Forbes amongthe “Top Ranches” Dude 10Luxury – Siwash Lake canbepartners. andconservation intheKamloopsfoothillsis proof Ranch that luxury www.siwashlakeranch.com For more information, pleasevisit British Columbia Small Business Profile 2009 Page 17 NL

as the total the total of GDP provide an of GDP provide average industry for the the industry minus Que NB NS PEI and above the value the value and above Canadian

Ont Small Business Large Business 24% 11% 29% = Statistics Canada Statistics rates growth of small business contribution much an industry has contributed well an industry, or an economy, economy, or an an industry, well to GDP of an industry (also referred 2008 BC Alta Sask Man the value of its output over the value indication of how indication The is doing. market value of all the goods and services produced of all the goods and services value produced market added is Value domestic or foreign. other industries, GDP by inputs. of intermediate added by as a whole is the sum of values economy the value of intermediate inputs purchased from from inputs purchased of intermediate the value to within national or provincial borders during a borders provincial or within national a measure of how a measure in Canada. all industries resident The speciﬁed period. value added) equals output by added) equals value to Product Domestic refers Gross (GDP) 5% 0% Earnings 2003 (payroll/employee) $ 30,507Earnings 2008 (payroll/employee) $ 37,800Per cent change $ 38,817 $ 43,059 35% 30% 25% 20% 15% 10% Source: BC Stats using data supplied by using data BC Stats Source: Figure 3.1: Figure ﬁrst ranked among the Columbia British in termsprovinces to GDP, BC Stats Source: 3.2: Figure British annual earnings, Changes in average 2003-2008Columbia,

small

oﬀering It creates diﬀerence a of the province’s province with the province British their average wages their average productivity. Larger productivity. boost for those working Newfoundland and Labrador to be related In fact, the province’s small business In fact, the province’s The 31 per cent). an 11 per cent $5,300. In nearly every industry,

the materials and services the materials it uses. sector is its gross domestic product domestic (GDP). sector is its gross other provinces? Saskatchewan ranked second after British after second ranked Saskatchewan has contracted $8,000. This approximately be more productive than small businesses. As a than small businesses. productive be more the Economy the traditionally paid their employees more compared more paid their employees traditionally be unionized; in general, employees who belong to employees in general, be unionized; source of innovation and meets payrolls that support that and meets payrolls of innovation source years. Between 2003 and 2008, small business years. faster pace in small business than in large business. in small business than in large pace faster sector adds to compare between small and large of the wage gap may of the wage to a plays small business suggesting that other province, a 33 per cent, ways. in many economy the British Columbia achieve more output per employee and can consequently output per employee more achieve to compared period, that GDP from small business was GDP from Quebec and Alberta at (each over not be possible for some larger businesses, such as more flexible hours. flexible such as more businesses, not be possible for some larger to earnings compared in their average than double the growth more scales between small and large businesses in British Columbia has businesses in British Columbia small and large scales between earn higher wages than non-unionized employees. than non-unionized earn higher wages to much less likely their employees higher wages. Another possible factor is that small Another possible factor is that higher wages. their employees to which amounts business, of large $43,059 for employees are pay measure of economic production of a of economic measure the fact that British Columbia has traditionally been more service been more has traditionally sector-oriented the fact Columbia British that pay does average large is the contribution of small business to large is the contribution gap in pay key Contribution average, large businesses have large average, small businesses. Small businesses make up much of this wage disparityof this wage up much by make Small businesses small businesses. 24 per cent increase of large businesses. Employees of small businesses saw Employees businesses. of large employees cent. of 29 per average the national above well GDP, of anyGDP is higher than that part to to unions tend The recent in substantially narrowed saw employees is due in This than in other parts economy of the country. in the B.C. role significant more How businesses? On to relative economy Columbia’s for 34 per cent accounted in British Columbia In 2008, small businesses to to Small business contributes a that the value GDP represents in small businesses is concentrated growth Canada’s and that than most other provinces, in service At sector industries. to smallest contribution province’s business in that of large role reflects the increased which likely (18 per cent), oil industry. offshore maybenefits that 3. How maintains employment, is a employment, and maintains and stimulate new economic activity. new economic families and stimulate The by followed Columbia, earned $37,800 in 2008, small business employee the average In British Columbia, to compared Partof about $5,300 annually. necessary afford capital of scale and can better of economies advantage firms can take labour. such as machinery for low-skilled substitute that and equipment improvements, firms to large allow advantages These to firms tend larger result, to afford businesses at businesses held fairly steady and large shrunk to 2005. By 2008, it had since significantly at employees the earnings gap between Early in the decade, businesses. for larger at earnings increased average Page 18 British Columbia Small Business Profile 2009 Source: BCStats usingdata suppliedby a third ofthe2008 a third British Columbiaover smallbusinessrepresents Figure 3.4: Source: BCStats usingdata suppliedby Note: F.I.R.E. =Finance, Insurance, andRealEstate British Columbia, 2008 Average annualearningsby Figure 3.3: 3 Note that thewage data are 10% 15% 20% 25% 30% 35% 40% Public Administration 0% 5% Prof. Health &E contributions to you Did British Columbia’s smallbusinessesleadthenation in T ransp. & Manufacturing Other

Bus. Construction aSs Man Sask Alta BC & ducation

Services Services F Utilities Storage Mining orestry F .I.R.E T Total know? rade . $80 $70 $60 $50 $40 $30 $20 $10 $0 from Statistics Canada’s ofEmployment, Survey Payrolls andHours, whichdoesnot includedata for theagriculture andﬁsheriesindustries. Data fortheaccommodation doesnotincludegratuities. andfoodsector provincial payrolls. provincial payroll Statistics Canada Statistics Canada Small business Ont 2 7 .8% = T u BN PEI NS NB Que housands industry,

Canadian Large average business NL

British Columbia, withapproximately 30percent provinces where theyare other provinces. The some industries, suchasagriculture, that are the smallestpercentage ofpayroll derived by wages paidto Second-ranked Prince Edward Columbia, by In 2008,smallbusinessaccounted for34percent total payroll generated by How will have It remains to wages inhopesofattractingemployees that would normallybedrawn to existing employees, aswell asattractingnewones. Many smallbusinessesmay business employers, increasing wages methodofretaining isperhapsthemosteffective other employee benefitssuchaspensionplansandextendedmedicalcoverage. For out ofbusiness. Large businessesoften offerhigherwages to example, ina jobsecurity for raising wages. This principlemay Since larger companies canoffertheiremployees more benefits, they may than $10,200 lessperannumthanthoseworking forlarge companies. construction At in2008,employees isconstruction; disparity working forsmallbusinessesearnednearly withhistorically significant insmallbusiness. wagetheir counterparts Anotherindustry public administration, where large businessespay differences remain amongsmallandlarge businessearners. The levels neededto in retail trade have trade, by mostimpacted whichhasbeenoneofthesectors large businesses. Inrecent continue to working intrade (wholesaleandretail trade). Smallbusinessworkers inthisindustry small businessesover In 2008,wages inbusinesseswith50ormore employees were large businesses? How The many smallormedium-sized a businessesas intheprovince of2008.Wageshortage during2006,2007andpart increases are The followed by employees intheaccommodation earnedthelowest andfoodsector wages, onaverage, wasteand support, management andremediation For services. premise isthat substantial wage hikes willdraw province’s increase inwages amongsmallbusinessesmay $700,thesmallestgapbetween smalland large businesssalariesisinadministrative doesBritish of Columbia compareinterms oftheportion doesaverage pay onsmallbusiness, andwhethera earnmore onanaverage working annualbasisthantheircounterparts for retail trade. The be seen what impacts therecent beseenwhat impacts farthehighestinCanada andwell above thenational average (28 per cent). smallbusinessemployees. At operate theirbusinesses. thetrade sector, Outside somesignificant wage consequently hadto wages oftheseindustries canhave most major industry groupings, mostmajorindustry withtheexception ofemployees more predominant. large business canbehigherifthere isa years, remained including2008,thisdisparity localized to highestwage earnerswere Islandwas compare across industriesforsmallversus compareacross alsoapplyto smallbusiness? offerraises inorder to more thanfourpercentage points lower than newpattern willemerge. 24percent, notasprevalent inBritishColumbia asin partial solutionto partial smallbusiness. Wages tend to economic downturn andpotential layoffs ofitsprovincial payroll comprised of ofwages paidto timesofeconomic uncertainty. For about$15,500more, onaverage, than more people backinto an effect onthesize ofpayrolls aneffect in inmining, oilandgasextraction. Manitoba was labour shortages. Employers labourshortages. beginwith,alongwith maintain thestaffing to bedueinpart higherthanthosein thescarcity ofworkers. businessesofany largest wage gapisin smallerchance ofgoing workers inBritish theprovince with bigcompanies. have theworkforce. belower in thelabour raise lessneed usedby less size,

small

retail

British Columbia Small Business Profile 2009 Page 19 For more information, please visit information, more For www.cherrypointvineyards.com Cherry Point Vineyards Vineyards Cherry Point Island Vancouver Hill, Cobble Today, depended on a powerful connection the land for their well-being. Nations to First centuries, For Vineyards. Cherry which own Point Tribes with the Cowichan as evident tie is evolving that the But they also sell the luscious fruit to still harvest blackberries for sustenance. Tribes Cowichan The includes operation Valley Cowichan The winery which is furthering self-sufficiency. their economic opportunities employment for First providing operation, and a retail processing growing, grape manager explained. general White, Glenn Nations, arm of the Cowichan development which is the economic Corporation, Development Khowutzun The a pair of from in 2004, taking it over of business ventures its suite to added the vineyard Tribes, as temperatures and Mediterranean-like glacial moraine the area’s farmers who saw Saskatchewan Nation. a First by owned It is one of only four wineries worldwide wine-growing territory. great and the 10-hectare Cherry Point vineyards, a dozen close to has sprouted then, the valley Since the in 1994 and now being the first licensed industry, growth of that has ridden the crest Vineyards Island. Vancouver on largest second in the do well that varieties grape with growing comes that on the spinoff tourism Capitalizing of the surrounding the produce where offers wine tastings and a popular bistro Cherry Point climate, summer days. on warm can be savoured area vintners. with other area its business model is collaboration to Key collaboratively also work but we with each other, compete we yes, all small businesses and, are “We White. says the area,” to bring tourists to Association) Vintners Islands (Wine WIVA through Page 20 British Columbia Small Business Profile 2009 Quesnel Birch Place Farm enjoying it, we’ll keep doingit,” says Pete Thumand. and fun. “There outthere are withthesebirch unlimited opportunities trees. Aslongas we’re KimMcIvorOwners andPete Thumand credit theirsuccess to keeping theirbusinesssmall, focused products. syrup salesare approaching 9,000large bottlesasconsumers lookforunique, localandsustainable market inQuesnel. Those bottlessoldoutinhalfan hour. Today, Birch Place Farm annualbirch moreSuccess thanseven started years agowith150mini-bottlesofbirch syrup at afarmer’s Birch Place Farm hasbecome hometo oneofonlytwo commercial birch syrupproducers inCanada. in thetrees.finding that opportunity years. However, –andonecompany is witheconomic challengecomes economic opportunity B.C.’s Cariboo region over sector hasbeenfaced withasharpdeclineintheforestry thepastseveral www.birchplacefarm.com For more information, pleasevisit British Columbia Small Business Profile 2009 Page 21 20 6% 8% 2007-2008 Growth 0-2% 2% 4% Statistics Canada Statistics Statistics Canada Statistics small businesses – fastest – fastest small businesses -200 0 200 400 600 800 1,000 1,200 1,400 rade T rade ourism Mining T Services ourism lower levels, it further distinguishes the levels, lower T Services Services echnology T (NAICS) echnology Construction le Vehic T Construction Administration Manufacturing inancial High ic F inancial High Business North American Industry System Classification F Other Retail T engaged. provide common definitions of the industrial definitions common provide Publ into it divides the economy the highest level, Real Estate Services new number of differ from other parts differ from of this report. economic activities. It has a hierarchical structure: activities. It has a hierarchical economic activities economic in which businesses different to North American Industry Classification System at are Canada, the United States and Mexico. It is designed and Mexico. States the United Canada, all encompassing system, comprehensive Canada’s sectors; at structure of the three countries. NAICS is Statistics NAICS is Statistics countries. structure of the three (NAICS) is an industry used in system classification The Retail Motor Secondary Specially Defined Sectors Secondary Manufacturing Specially Defined Sectors Note: Excludes self-employed without paid help self-employed Excludes Note: supplied by using data BC Stats Source: Figure 4.1: Figure Net growing sectorsgrowing 2007-2008 Columbia, in British Sector growth for number of small rates 2007-2008 businesses, Figure 4.2: Figure Note: Excludes self-employed without paid help self-employed Excludes Note: by supplied using data BC Stats Source:

for paid employees only and may for paid employees resource with a called “specially that period, the period, that small businesses. from small offices, from far in small business growth. Statistics Canada. In this report, Canada. Statistics net gain of 142 small businesses. not defined under the North herald future economic growth for growth economic future herald are of employers boom in residential and non-residential boom in residential developed around its natural resources its natural around developed net of 1,277 small businesses. Despite a net of 1,277 small businesses. less dependent on capital than are less dependent significant portion of the economy, while the while portion significant of the economy, are in this chapter provided the figures therefore, not available; sector an addition of 635 businesses in 2008. This retail trade, which had an increase of 176 small which had an increase trade, retail – small number of employees actually of smaller parts composites of traditionally a industry are a represent other businesses, such as advertising, accounting and accounting such as advertising, other businesses, good fit for the expansion of small business in the province. good fit for the expansion “other” a and by This in the industry. driving factor in small business growth the last reporting year. High technology led the way technology High the last reporting year. to come the end of 2008, the recent a likely sectors are These by followed Defined Sectors Defined businesses? prominent role in the province’s economy; however, sectors such as tourism and sectors such as tourism however, economy; in the province’s role prominent Specially Defined Sectors of these three specially defined sectors experienced an increase in the number an increase specially defined sectors experienced of these three Growth and Industries components. vices Note that reliable data for self-employment by data reliable that Note tourism, high technology and secondary high technology the tourism, manufacturing sectors are defined sectors.” for example, includes data from parts from includes data of the for example, defined industries under NAICS. Tourism, and culture and food services, and information, accommodation transportation industry, includes both manufacturing High technology and services, others. among recreation Over 2007 and 2008. net addition of 169 new businesses between construction was Olympics in Vancouver. 2010 of the upcoming partlyboom stemmed anticipation from business servicesSecond-ranked saw to includes services provided It was cleaning. Specially are on industries that section information This contains Between 2007 and 2008, this sector added a towardslowdown food and beverage furniture, other than automotive, trade businesses and includes retail a recorded third, services, ranked Financial and clothing. (NAICS) used by American Industry System Classification British Columbia, the construction sector is the leader by In British Columbia, Number of Small Businesses increase the greatest in the number of Which industries show small industries still These extraction-based such as mining and forestry. sectors, and resource a play 4. were industries British Columbia’s Historically, or even private homes. private or even plants is the basis for growth in this sector, and high tech services and high tech be can often in this sector, is the basis for growth Innovation performed – proficiently Two of small businesses over havehigh technology ser secondary manufacturing to sector has the potential extraction they are sectors, 96 per cent for example, sector, In the high tech province. Given that these industries are that Given the province. 4 Page 22 British Columbia Small Business Profile 2009 5 2003-2008 job growth, in British themost Columbia experiencing Small businessemployment –industries Figure 4.3: F Source: BCStats usingdata suppliedby Professional, scientific Note that data onemployment by and inance andinsurance E ducational services Mining, oilandgas Tourism includesindustriessuchastransportation, Secondary manufacturing Secondary High technology industriesmay sector isavailablesector at: technical a high proportion ofrevenuesa highproportion inresearch and another manufacturer. Bycontrast, afactory operation,a manufacturing butnotsecondary available at: accommodation, andothertourism- foodservices Special Sector Definitions Sector Special technology are products those that produce goodsfrom of theproducts from manufacturer. sawmills isasecondary development. industriesthat Other produce high other manufacturers. For data/bus_stat/busind/tourism.asp. manufacturer, becauseitslogsdonotcome from proportion ofscientists andresearchersproportion orinvest producing wooden doorswithlumberobtained related More activities. information onthetourism information onthehightechnology is sector bus_stat/busind/hi_tech.asp. Construction extraction services %1%2%3%4%5%60% 50% 40% 30% 20% 10% 0% www.bcstats.gov.bc.ca/data/ size ofbusinessare www.bcstats.gov.bc.ca/ Statistics Canada alsoincluded. More example, asawmill is industriesare notavailable forthe speciallydefinedsectors. Growth employ ahigh 2003-2008

%8%90% 80% 70% (around 2,840jobs). was finance andinsurance industry increase of26.1percent The India—for nonferrous metalssuchascopper, in2007. zincandaluminum,particularly to be attributed partly (an additionofabout2,300jobs).The substantial increase inemployment over In terms ofgrowth rates, increasing itsemployment by a alsoadded sector technical services inpreparationconstruction forthe2010Winter Olympics).The beginning ofthedecade, withthebiggestjumpoccurring in2007(during thepeakof experienced a firms increased at the numberofestablishments between 2007and2008,whilethenumberoftourism sectors, hightechnology ledthepackwitha In thespecially-defined commodities. to metals forexport mining (4.7percent). The administration alsosaw increase inthenumberofnewsmallbusinessesany At businesses? industriesshowWhich thefastest new in rates ofgrowth saw sector asa sector indemandthewake reduction today’s economy. suchastheappreciation In2008,factors oftheCanadian dollaranda businesses dippedslightly. A gains were over cent, small businessjobsinBritishColumbia. surged Employment 52.0per inthis industry was industry 2003and2008,theconstruction Between themostjobgrowth? industriesareexperiencing Which Small Business Employment related businesses, includingrestaurants, didfairly well, 83 establishments. Although2008 was Meanwhile, thenumberoftourism businessesincreased in2008,witha the creation ofnewbusinessesinthissector. a educational services sector alsorecorded sector educational services a notable6.6percent, thefive-year period. Construction jobshave astherecent whole, across mostindustries. The a all in the service sector asthenumberofhigh technology sector manufacturing allintheservice netdeclineofapproximately 55smallbusinessesbetween 2007and2008. 0.9percent a construction boomintheprovince construction created about30,360newjobs slower rate overseas markets in2007,andtheconsequent riseinprices forthose 5 theboostinoverseas demand—namelyfrom Chinaand solidgrowth innetnewsmallbusinesses(5.2percent), asdid over the mining, oil and gas extraction industry recorded themining, industry themost oilandgasextraction construction experienced construction themostprominent annual growth in miningwas lossinthenumberoffirmsthat sector. lull in the manufacturing sector isnotuncommon in sector lullinthemanufacturing thefive 23.5 (0.5percent). manufacturing Meanwhile, secondary ofglobalrecession took theirtoll onthemanufacturing percent notfarbehind, withanincrease of23.8percent substantial number ofnewjobsfrom 2003to year period(anadditionofabout2,760jobs).The continued growth could possibly ofthissector generally a thissameperiod, witha andcreating nearly11,800newjobs. province’s manufacturing secondary notableboostinemployment, withan increased annuallysince at likely causedby slow year economically, sometourism- ofthestandard sectors. Public thelargest provider ofnew perhaps partially contributing to perhapspartially professional, scientific and heightened demandfor 91.2percent 2.0percent netadditionof leastthe surge

risein

2008,

British Columbia Small Business Profile 2009 Page 23 www.bardel.ca For more information, please visit information, more For Bardel Entertainment Vancouver a full-blown, to being a small service from provider a long way Entertainment has come Bardel Vancouver. studio based in animation successful wife Delna Bhesania studios before as an artist animation for several had worked Ward Barry Barry a challenge, from and Delna back away to a couple Never startingsuggested studio. their own Entertainment just $2,000 in startup with launched Bardel cash. and has partnerships 300 people the studio employs and international with major Canadian Today online sites. TV series and interactive films, for feature content providing entertainment companies, the studio of experience, than 20 years more from drawn media culture into of insight a wealth With specials holiday includes This proprietary its own content. and distributes produces develops, now and and Ice; (Dragons – Fire and movies Pad) TV series (Silverwing and Zeke’s Christmas Orange), (The Dragons – Metal Ages). including 10 for television list of awards, an impressive Entertainment has garnered Bardel the 2009 International came from awards most recent two The and four for home video. programming Arts. and Animated for the Electronic Awards have You and perseverance. dedication work, – hard no secret “There’s their success? to the key What’s Ward. Barry says no one has gone before,” boundaries and go where press be willing to to Page 24 British Columbia Small Business Profile 2009 Kelowna Kelowna Wildwood Media they willbelookingto throughout launchtheirproducts Europe. The recognition encouraged Wildwood Americanmarket. to lookbeyond itsNorth Inthefuture, Council, thehighestrating possible. Awards. Several oftheirtoys have received ranking athree-star from theCanadian Toy Testing The company won StarAward theRising at theKelowna ChamberofCommerce 2008Business environmental footprint. These foster products socialandenvironmental awareness inchildren andminimize thecompany’s GirlDolls, andanAllNatural Care Dolls, Character Butterfly LittleHumbugsBody Book line.Story Wildwood’s award-winning have products since evolved toseries, includetheLittleHumbugBook attention ofchildren across Canada andtheUnited States. characters. The thebright reflect characters colours that mirror nature andseekto grab the Wildwood Mediabeganwithawebsite, usingillustrations to introduce children to the Wildwood Marghanita andDavid HughesofKelowna wholaunched Wildwood Medialessthanfouryears ago. Creating achildren’s designcompany kidswithnature to connect hasbeenawildjourneyfor www.wildwoodmedia.ca For more information, pleasevisit British Columbia Small Business Profile 2009 Page 25 Cranbrook

3.6% Kootenay Coast/ 3.6% 1.7% 1.9% Kootenay Nechako half of 3.7% 12.7% Northeast North Cariboo hompson/ Okanagan T owna 12.7% hompson/ Okanagan Creek T Kel 1.6% 1.1% -0.5% -15.1% 8.2% -13.0% -8.0% -0.1% Kamloops Lake Dawson lliams son John Wi Nel St. Vancouver Prince George ort ort F F 58.3% Mainland/ Southwest Victoria 1.9% Northeast 3.7% 18.1% Cariboo Vancouver Island/Coast Nanaimo Smithers Smithers Growth (#) Growth rate -2,400 1,100 -600 Statistics Canada Statistics Statistics Canada Statistics 2% 1.7% Nechako Nechako North Coast/ North Coast/ Prince Rupert Prince Rupert 58.3% 18.1% Mainland/ rounding. Southwest and/Coast l Vancouver s I 2007-2008 change by in number of small businesses Vancouver Island/Coast 1,100 Mainland/Southwest 2,400 Thompson/Okanagan -300 Kootenay Cariboo North Coast & Nechako -1,000 Northeast Provincial Total† -500 Figure 5.2: Figure Net do not add due to † Figures supplied by using data BC Stats Source: region, 2008 Columbia, in British all small businesses Figure 5.1: Figure for over accounted Mainland/Southwest by supplied using data BC Stats Source:

15.8 more Thompson/ marginally 25.4 per cent in the Vancouver about 58 per cent the province, growing the province, the most businesses. drop of 15.1 per cent. drop an approximate increase an approximate of small businesses in around 500 businesses). around second, increasing 1.6 increasing second, of small businesses, which of small businesses, home to (or rate slower comparatively 10.6 per cent among the principal industries, a of small businesses, a recorded region Kootenay share of population helps determine of population share percentage points lower than its 60 per cent lower points percentage share of population. share reduction occurred in the number of self- reduction occurred region, and by region, in the Thompson/Okanagan full two the greatest number of small businesses? the greatest by increased self-employed to in 2008, which translates growth was region Island/Coast Vancouver 22.2 per cent positive growth in entrepreneurs, with the exception of North with the exception in entrepreneurs, growth positive 13.6 per cent ranked third with about 13 per cent third ranked the greatest number of small businesses. In 2008, the Mainland/ number of small businesses. the greatest 1,100 net new small businesses. In terms of actual the In terms numbers, 1,100 net new small businesses. most notable in the Kootenay region, with a region, most notable in the Kootenay a experienced region Thompson/Okanagan an addition of about 2,400 establishments. The The region. in the Mainland/Southwest or close to a recorded Between 2003 and 2008, this region growth. yment Theper cent). (12 population total of the province’s its share above also slightly are forestry and agriculture where region, Cariboo North Coast/Nechako region fell 13.0 per cent and the Northeast region slipped 8.0 North region Coast/Nechako Focus Regional what regions is self-employment growing the fastest? growing what regions is self-employment which regions are the greatest numbers which regions are the greatest businesses of small in the number of self-employed individuals, slightly ahead of the 21.5 per cent slightly individuals, in the number of self-employed surge all other regions Northeast period, In that region. in the second-ranked rise recorded also saw of the province a where Coast/Nechako, The individuals. employed by region, Island/Coast per cent climb of 5.9 per cent. moderate In the leader in self- is also the Cariboo small business development, As with total emplo province recorded an average loss of just 0.1 per cent an average recorded the province The recorded region This in small businesses. increase in the year-over-year led the province 8.2 per cent an impressive per cent In forming? regions seven of British Columbia’s three declines in other areas, Despite significant such that 2007 and 2008, in the number of small businesses between growth recorded Theof 1,100 businesses. added the most new businesses to region Mainland/Southwest 1.1 per cent, 2007 and the number of small businesses between declines in experienced regions Four were 2008. Losses The per cent. 5. Which have regions have of British Columbia regions the most populated Naturally, to the distribution of businesses Comparing was Okanagan region was Vancouver, which includes Greater region, Southwest havewhich regions region— most populous the second Conversely, population. provincial of total share 18 per cent contained Island/Coast— Vancouver Theper cent). (17 population of provincial proportion than its share larger was for about 11 per cent accounted together regions remaining of their 11 per cent 2008, representative a businesses, small the province’s decline of 0.5 per cent. Page 26 British Columbia Small Business Profile 2009 Source: BCStats usingdata suppliedby between insomeregionsoftheprovinceestablishments gained definedsectors The specially Figure 5.4: Source: Statistics Canada /Prepared by in British Columbia, 2003-2008 Self-employment growth Figure 5.3: Vancouver Island/Coast Coast & North & Nechako North Coast aio 119 .%1 5.7% 10 0.6% 1 1.9% 11 Cariboo otny2 .%- 40 3.8% 6 -4.0% -8 2.8% 21 Kootenay Okanagan Thompson/ Southwest Mainland/ otes 1 49 7-.%- -1.9% -1 -3.9% -7 -4.9% -14 Northeast Island/Coast Vancouver REGION DEVELOPMENT T Mainland/Southwest hompson-Okanagan Northeast Kootenay

Nechako Cariboo 2007 .%- 48 -8 -4.8% -5 1.6% 7 433 826 0.3% 2 2.6% 18 3.3% 64 802 5 .%-7-0.7% -27 2.8% 154 0.2% 18 721 525 1 -2.1% -18 2.5% 35 2.1% 57 (#) Change TuimHg ehooySecondary HighTechnology Tourism and 2008 2% 3%-0 0% -20%-30% -10% change Rate of BCStats Statistics Canada (#) Change Growth 2003-2008 rate change Rate of 0 0 30% 20% 10% forregions Provincial (#) Change Manufacturing average = -10.4% change Rate of

13.8%

be seen,andmay oftheeconomic downturnfull impact onBritishColumbia’s small businessesremains to residents travelling abroad may tourism-related businessesasmoneythat would normally bespent by to counterparts, many Canadians and, likewise, many BritishColumbians, may tourism-boosting travel may ofretirees,higher proportion suchasVancouver Island/Coast andKootenay. regions. Similarly, olderself-employed individualsare Coast/Nechako,North are regions. For diversity that oftheprovince’s ischaracteristic the demographic andindustry-driven British Columbia’s self-employed. These differences are However, despite thedrop invisitors from southoftheborder, a Columbia’s tourism industrieshave has weakened, andconsumers around theworld have abouttheireconomicconsumers future. often postponewhenuncertain Asconfidence global economic slowdown hithome. Tourism isa more modest, at establishments witha increase. The high tech businesses, whiletheVancouver Island/Coast region posted a establishments. The businesses inthetwo 2007and2008,thehightechnology expandedBetween sector itsnumberofsmall fastest? growing the In what regions arethespecially definedsectors noteworthy regionalSome variations exist intheageandsex via BritishColumbia’s borders were cent) province. inonlyone region Infact, – Promising growth occurred inthenumberoftourism-related smallbusinessesinthe Okanagan region saw cent, most pronounced smallbusinesses, at growth manufacturing insecondary also notablelossesin decline, withthenumberofsmallbusinessesfalling10.4percent, Coast/Nechako region suffered a fell infourregions oftheprovince. The manufacturing 2007and2008,thenumberofsmallbusinessesinsecondary Between of 3.9percent. while theKootenay region declined4.0percent Okanagan region, where thenumberincreased by 4.9 percent. interestingparticularly given that visitor entries to stay closerto whiletheKootenay region experienced gainsof3.8percent andMainland/Southwest (-0.7percent) example, the self-employed in the northern regions, and example, theself-employed inthenorthern suchasNortheast

Thompson/Okanagan region alsosaw Allotherregions experienced gains, most notablytheThompson/

home. This changeintourism choices may 0.6percent. become more apparent in2009. Mainland/Southwest region recorded a areas with thehighestconcentration of high technology theVancouver Island/Coast (-1.9per (-2.1percent), Northeast anincrease of0.3percent. 2.6percent more likely to stillbeoccurring withinCanada itself. Like theirAmerican Conversely, three regions suffered declines. The have declineinhightech smallbusinessesof4.8percent, increase. The feltthepinchofa down 8.9percent been injected instead beeninjected into the Northeast region – theNortheast North Coast/Nechako North region saw bemalethaninthecentral regions. The and the Northeast region saw andtheNortheast increase intheCariboo region was discretionary expenditure discretionary that 3.3percent. C a anada from theUnited States downturn intourism activities. significant climbinhightech in 2008, as the effects ofthe in2008,astheeffects more common inregions witha tightened theirbelts, British likely related to inlarge part have Cariboo region, saw 2.8percent diditdecline, falling distributionamong These increases are localeconomies. The given a substantial share of andtheThompson/ butthere were andsouthernmost Canadian 2.5percent boostto thelargest jumpin 5.7per beopting North a

the decline small

British Columbia Small Business Profile 2009 Page 27 Value of Exports ($millions) Number of Employees still based on the establishment framework. still based on the establishment BC Stats small exporters. are business size, Number of Establishments 5,1461,176 60,683 $11,915.9 293,358 $19,360.3 country, regardless of the value of the exports. of the value regardless country, than 50 employees that exports that goods out of the than 50 employees Small Business ExporterSmall Business some large firms aresome large A Small Business Exporter is a business with fewer Small firms can be large exporters and, conversely, conversely, exporters and, Small firms can be large Small business exporters Large business exporters Total all exporters 6,322 354,041 $31,276.2 Figure 6.1: Figure exporters, Columbia* Number of British and value of exports, 2007employees *Includes data for the Territories *Includes data by / Prepared Canada Statistics Source:

for

the

business

be however, manner that service is that of small businesses also be considered of the total value of the total reflected in both the reflected total small business total not readily available, not readily international numbers for small of limited and such data limited meet confidentiality available separately, available are less than one per cent; not produced in a not produced small businesses that did small businesses that diamonds from the Northwest diamonds from 98.6 per cent may province, A destinations. international another country or a the purposes of this report, an exporter the purposes of this report, exporters in 2007, they shipped be slightly more overstated due to overstated more be slightly businesses with fewer than 50 employees, than businesses with fewer appreciation created significant challenges significant created appreciation This number of small business exporters may an appreciating Canadian dollar that achieved dollar that Canadian an appreciating by inflated probably of all exporting but only 1.4 per cent businesses, the Exporter Registry, which is the source of exports by which is the source in the Exporter as the data Registry, counts, than business location rather counts, establishment low good shipped to higher-valued domestic currency makes domestically- domestic currency makes higher-valued For unavailable. compete internationally. compete these, 5,146 were these, generally large business exports. The large generally 81 per cent Of 6 to in order with British Columbia region by characterized a to province such as from country, to merchandise ships business that

to or services one region Goods or business. from traded resident foreign high start-up with an exporting or the need to associated business, costs are business size fraction of small businesses were a small business exporter defined? are these data in the coverage, inconsistencies many small businesses in British Columbia export? Columbia small businesses in British many is a Small Business Exporters Small year 2007 was year employee size. of export for businesses by employee in the availability one-year lag exists data to refer in this chapter the business counts that Note inclusion of the diamond exports the Northwest Territories. from fewer than 50 employees that exports that goods out of the country than 50 employees is defined as a with fewer small business exporter. A of exports businesses maythe value for large Due to the influence should not significantly the Territories the inclusion of exporters from are Most of the exports the Territories numbers. from and these are Territories (Yukon, Northwest Territories (Yukon, the Territories has grouped Canada Statistics since intoand Nunavut) include exporters in the Territories; reported here As such, the data requirements. were for the Territories when data based on years however, are on service trade exports. Data exports and interprovincial is defined as a are businesses in British Columbia another within a by tabulated are reported here the figures Consequently, comparisons. permit year-over-year on its own for British Columbia In addition, data 2007 only. just over representing small businesses in the province. In other words, all small businesses in the province. did not export goods in 2007. Thein British Columbia or almost six per cent 60,683 people, export goods employed employment. only a While $11.9 billion worth of goods, or about 38 per cent $11.9 billion worth of goods, approximately The of exports the province. from to attributed to of scale economies achieve parity with its American counterpart. a since for exporters of all sizes was This purchasers. for foreign expensive goods more produced The How exported goods to had 6,322 businesses that British Columbia in 2007. destinations 6. How An export of either a can consist to provided 6 Page 28 British Columbia Small Business Profile 2009 shipped exclusively totheUnited States in2007 Most British Columbia* smallbusinessexporters Figure 6.2: Source: Statistics Canada /Prepared by BCStats *Includes data forthe Territories Both US&other 19% US only 58% Non-US only 23% these overhead costs. destinations tended to shipgreater volumes, whichprobably helped defray someof States could price themoutofthemarket. Those to businessesthatother didexport expenses;absorb extra therefore, to countries exporting more distant thantheUnited businesses have asmallerprofit margin thanlarger enterprises, theyare lessableto to overseastransportation destinations, addingto theprice oftheproduct. Since small countries withlanguage differences. Smallbusinesseswould alsoincurhighercosts for to theUnited States involves lower costs formarketing, compared to particularly to dealwithAmericancustomers over lessfamiliaroverseas markets. Aswell, exporting United States to apreference may bedueinpart by BritishColumbia smallbusinesses didnotshipanybusiness exporters goodsat allto theUnited States. The focusonthe United States andat leastoneothercountry. Less(23percent) ofsmall thanaquarter exclusively to theUnited States in2007.Another19percent goodsto the exported Approximately 58percent ofBritishColumbia shipped smallbusinessexporters small businessexporters? What is the destination of goods shipped by British Columbia drop 17.7 percent between 2007and2008. sector, thoseintheforestry exporters, particularly whichsaw thevalue ofitsexports downturn that hasoccurred since that timehasexacerbated thesituation formany that eitherceased to operate, goodsin2007. ordidnotexport The globaleconomic were smallbusinesses, itislikely ofthemwere that asignificant portion amongthose be consistently compared from year to year, given that over four-fifthsofexporters While Statistics Canada doesnotproduce databy employee-size onexporters that can and 2007,thevalue whichdropped ofexports, 5.7percent inthat period. overall inBritishColumbia, numberofexporters whichfell7.9percent between 2006 compared to oftheprovince’s 85percent oftheexports larger businesses. of that size. InOntario, were 40percent ofsmallbusinessexports inmanufacturing, as more were manufacturers, shipping35percent by businesses ofthegoodsexported Bycontrast,exports. 58percent inthePrairies ofexporters with50employees or region were manufacturers, andtheyshippedonlynine percent ofsmallbusiness least likely to beinmanufacturing. 29percent inthat Only ofsmallbusinessexporters thanlarger inthePrairies exporters.manufacturing Smallbusinessexporters are the Across Canada, asinBritish Columbia, are smallbusinessexporters lesslikely to bein businesses that export. businesses, at 46percent and45percent forsmallbusinessexporters forlarger wasof employees sector similarforsmallandlarge inthe manufacturing exporting larger businesses, the comparable figure was 63percent. However, theproportion small businessesinBritishColumbia was produced sector. by themanufacturing For or more). Inaddition,only21percent ofthevalue ofmerchandise by exported industry,a manufacturing compared to 58percent oflarge (50employees exporters to beinmanufacturing. In2007,only34percent were ofsmallbusinessexporters in In BritishColumbia, are smallbusinessexporters farlesslikely thanlarge businesses be smallbusinessexporters? ofindustries inBritish Columbia aremostlikely to What types British Columbia Small Business Profile 2009 Page 29 75 60 45 30 15 0 $Billions lantic At lantic At exports (%) domestic BC Stats BC Stats of

share 2007 region, < 50 employees employees 50 or more BC* Prairies Ontario Quebec housands) T Small Business Exporters ( ExportVa($Billions) lue BC* Prairies Ontario Quebec Manufacturing industries’ housands T 0 80 60 40 20 100 9 6 3 0 15 12 Figure 6.3: Figure exportsSmall business to be likely are less manufactured 2007 goods, *Includes data for the Territories *Includes data by / Prepared Canada Statistics Source: Export intensity for small businesses varies widely by Figure 6.4: Figure for the Territories *Includes data by / Prepared Canada Statistics Source:

result of result average evolution of evolution small business sector deal with exporting substantial increase substantial in terms of the number in terms global scale is in niche growing portion growing of these sales produce specialized items specialized produce the origin of almost half (47 per the origin of almost half the fact that many small farms in the the fact many that a the last decade, smaller businesses in the export market, fewer small business exporters in the Prairies fewer cust Wheat such as the Canadian co-operatives large to suited be better least in part, to problem these small businesses face is determining these small businesses face problem The theworld. omers around over an advantage compete with larger firms on a with larger compete solution that will give these businesses an opportunity will give solution that to far the largest number of small business exporters number of in 2007, twice far the largest was region that provinces, three this activity could help explain the relatively higher export intensity this activity the relatively help explain could offer a be able to The in exporting before. than ever involved get more customers in other countries. customers their exports handled by and become even more vital in the future. more even and become of the top were although there example, $2.3 million, while Atlantic Canada’s small businesses exported an average of small businesses exported an average Canada’s $2.3 million, while Atlantic to presence their communicate various factors, including economies of scale. However, one area where small where one area However, of scale. including economies factors, various do British Columbia small business exporters Columbia do British compare to is technology affecting technology is exporters? business small the value of all Canadian small business exports. Alberta of all Canadian the value oil and gas producers been to to growth in e-commerce and other communications technologies has allowed small has allowed technologies in e-commerce and other communications growth a in export is likely intensity variation This $1.8 and $2.2 million respectively. The businesses to could and new technology economy an importantis already part of British Columbia’s help it grow be hiring small firms in the finance and insurance sector to and insurance be hiring small firms in the finance might Ontario had by Board. Quebec. as second-ranked as many The Canada. in export across intensity variation regional is significant There in than of exports of Canada value per small business is far higher in some regions Forothers. than in any cent) If so,their product. of $11.9 exported Small business exporters an average in the Prairies in the Prairies. of $3.8 million per business. average the national above million per firm in 2007, well of small business exporters annual shipments totalled the average In British Columbia, just over $8.9 million per firm. In 2007, Ontario and Quebec led the way export per firm, value average of small business exporters but they also had the lowest at of the country. regions in the industrial structureof the various differences due to businesses may small businesses may since markets, The for these smaller markets. how e-commerce may Over internationally. their marketplace expand and services sales of goods in Internet and a has occurred have havePrairies How have firms generally Large in other partsthose in other of the country? at is due, This combined. provinces How small business exporters of the Prairie than all had more In 2007, British Columbia Page 30 British Columbia Small Business Profile 2009 derived from Statistics Canada’s Registry. Exporter fromdirectly theLabourForce Survey. Dataare describingsmallbusinessexporters and HoursLabourForce Survey. numbershave Allself-employment beenobtained payrolls have beenproduced usingStatistics Canada’s ofEmployment, Survey Payrolls Canada’s BusinessRegister andLabourForce Survey. Estimates ofemployment and Estimates ofthenumberbusinesseshave beenproduced usingdata from Statistics Data Sources last year’s edition. statistical revisions, suchthat year-over-year comparisons shouldnotbemadeusing compared to otherprovinces. This editionoftheSmallBusinessProfile incorporates numbers, rather oftrends thandirection ortherelative standingofBritishColumbia and different methodologies. Differences willpotentially bemore interms ofabsolute The results may differfrom estimates produced inotherstudiesthat usedifferent data the employment andpayrolls generated by thesebusinesses. large and smallbusinessesoperating inBritishColumbia andotherprovinces, aswell as has combined data from several sources to produce estimates ofthetotal numberof does notexist; therefore, businesscounts mustbeestimated to someextent. BCStats A comprehensive listingofallbusinessesoperating inBritishColumbia orelsewhere All statistics presented inthisdocument are basedonthebestdata currently available. Technical Notes Contributed by: Contributed Small Business SuccessStories Lillian Hallin,BCStats Dan Schrier, BCStats BC StatsJade Norton, Prepared by: Wildwood Media Siwash Lake Ranch FlowersJust Beginnings Feathercraft Eldoren Design Point Vineyards Cherry Birch Place Farm Bardel Entertainment 32,864 3,636 7,159 192,500 For more information on this document, contact:

Western Economic Phone: 1 888 338-9378 Ministry of Small Business, Phone: 250 387-4699 Diversification Canada Fax: 604 666-2353 Technology and Economic Fax: 250 952-0113 700-333 Seymour St. Email: [email protected] Development Email: [email protected] Vancouver, B.C. V6B 5G9 Web: www.wd.gc.ca PO Box 9822, Stn Prov Govt Web: www.gov.bc.ca/sted Victoria, B.C. V8W 9N3

Aboriginal Business Service Network La Société de développement économique Business information and resources for aboriginal entrepreneurs The Francophone Economic Development Organization enhances the 1 250 828-9834 vitality of minority language communities and assists with economic www.absn.ca development 1 877 732-3534 BizPaL Business Permits and Licences www.sdecb.com Online tool to help quickly and easily identify permit and licensing requirements for business activities OneStop Business Registry [email protected] Online business registration and change of business address www.bcbizpal.ca 1 877 822-6727 www.bcbusinessregistry.ca Canada Business The Government of Canada’s main site for business information Service BC 1 888 576-4444 Province-wide access to government services including key www.canadabusiness.gc.ca government transactions for business 1 800 663-7867 (Enquiry BC) to be transferred to the Community Futures British Columbia nearest Service BC Contact Centre Business counselling and assistance for new and existing businesses www.servicebc.gov.bc.ca in rural British Columbia 1 604 685 2332 Small Business BC www.communityfutures.ca/provincial/bc/ Comprehensive business information and business planning resources for starting and growing a business in British Columbia eBC eBusiness Connection 1 800 667-2272 e-business information resources for small and medium-sized businesses www.smallbusinessbc.ca 1 604 775-7532 www.e-bc.ca Women’s Enterprise Centre Business information counselling and skills training FrontCounter BC for women entrepreneurs A single window service for natural resource clients of provincial 1 800 643-7014 natural resource ministries and agencies to obtain all the www.womensenterprise.ca information and authorizations they need to start or expand a business 1 877 855-3222 www.frontcounter.gov.bc.ca

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