SMALL BUSINESS PROFILE 2021 - British Columbia

1 SMALL . BUSINESS . PROFILE . 2021. S MA L L B U S I N E S S P R O F I L E 2021. A PROFILE of SMALL BUSINESS in British Columbia CONTENTS. The SMALL BUSINESS PROFILE 2021 is produced by the Ministry of Jobs, Economic Recovery and Innovation. The report was prepared by BC Stats in partnership with the SMALL BUSINESS Branch of the Ministry. Executive Summary 1. Information on programs and services for SMALL businesses Spotlight on British Columbia 's BUSINESS Landscape: can be obtained by contacting: Some Key Indicators 4 SMALL BUSINESS BC. SMALL Businesses and COVID-19 5 Email: Telephone: 1. SMALL BUSINESS growth 12 Toll Free: 601 West Cordova St.

2 2. SMALL BUSINESS Employment 28 Vancouver, V6B 1G1. 3. PROFILE of Self-employed in British Columbia 37 Statistics related to SMALL BUSINESS are available at: 4. Contribution to the Economy 45 BC Stats 5. SMALL BUSINESS Exporters 52 Email: 563 Superior St. Conclusion 61 Box 9410 Stn Prov Govt Victoria, V8W 9V1. Technical Notes 62. Information on provincial government programs Glossary 63 and services can be found at: Ministry of Jobs, Economic Recovery and Innovation Index 65 SMALL BUSINESS Branch List of Figures 67. Email: Telephone: Appendix 1: Counts of SMALL Businesses with Fax: Employees by Industry by Region, 2015-2020 69 Box 9822 Stn Prov Govt Victoria, V8W 9N3.

3 Appendix 2: British Columbia Self-employment by Age and Gender 73. This publication is also available electronically Appendix 3: COVID-19 Related Change in Employment on the following web sites: for Selected Industries 74 SMALL BUSINESS Resources 78 BUSINESS / SMALL - BUSINESS /resources EXECUTIVE SUMMARY. In British Columbia , compared to other provinces, there are and compared to other provinces, lost more jobs in more SMALL businesses per capita, they employ a larger share the SMALL BUSINESS sector relative to our size (we lost of the workforce, and self-employment is more common per cent of employment in the sector), but still leads the than in any other province.

4 The vast majority of businesses are country in growth over the five-year period of 2015 to 2020. SMALL businesses 98 per cent. In a province with million All regions of saw a decline in the number of SMALL people and 523,600 SMALL businesses, roughly one-in-ten businesses in 2020, with the Northeast and Cariboo seeing British Columbians are SMALL BUSINESS entrepreneurs of some the largest losses. kind, from private tutors to professional firms to exporting manufacturers and more. Demographics of self-employed people show that, on average, they tend to be older, male, work longer hours The 2021 SMALL BUSINESS PROFILE gives data and analysis and are less likely to be an Indigenous person compared to on SMALL businesses and their impact on 's economy in employees.

5 Women are still a vital and growing part of self- 2020. Defined as businesses with fewer than 50 employees, employment, comprising 39 per cent of all BUSINESS owners SMALL businesses have long played a critical role in 's in in 2020, just above the national average. Indigenous growing economy. The information here can help policy people are self-employed at a rate of per cent, also just makers support SMALL businesses to better position them above the national average. to scale-up and grow by identifying areas of opportunity and highlighting areas in which 's SMALL businesses have SMALL BUSINESS in accounted for 34 per cent of overall been successful.

6 Gross domestic product (GDP) in 2020, and the 9,000. medium and large sized businesses accounted for the This is the 25th annual SMALL BUSINESS PROFILE , but 2020 was other 66 per cent of GDP. Taken together, GDP, salary not a normal year and this year's version will reflect that. and employment estimates present a broad picture of The COVID-19 pandemic took a heavy toll around the world. productivity. Larger firms tend to be more productive, Whereas the report has always intended to analyze long-term support higher investment, and pay higher wages (on trends and to keep its statistics comparable from year-to- average $9,400 more per year) than SMALL businesses.

7 At the year, this year's report pays special attention to short-term same time, has the smallest gap between SMALL and (one-year and monthly) statistics that show what effect the large BUSINESS salaries in the country. Strategies that support pandemic had on SMALL businesses and their employees in 's SMALL businesses to scale-up and grow will help our For example, lost relatively more jobs during the early province innovate and prosper. months of the pandemic than almost any other province ( per cent between February and April 2020, third hardest SMALL BUSINESS exporters shipped almost $15 billion worth of hit in the country) but also recovered those lost jobs more goods abroad in 2020, 36 per cent of all goods exports.

8 There quickly than any other province (by June, employment in were almost 6,000 SMALL BUSINESS exporters, 86 per cent of all was per cent above pre-pandemic employment). exporting firms. This report provides vital statistics on SMALL businesses in SMALL BUSINESS is big BUSINESS in Our province's ability 2020. SMALL businesses employed almost million people to compete as a desirable place to live, invest and do or 43 per cent of all workers and were responsible for nearly BUSINESS is thanks in large part to the contributions SMALL one-third (31 per cent) of all payrolls. In 2020 on average businesses make to the economy. SMALL BUSINESS PROFILE | 2021 1.

9 HIGHLIGHT FIGURE 1 HIGHLIGHT FIGURE 2. Percentage of Businesses by Size Number of Self-Employed BUSINESS Owners in British Columbia , 2020 in British Columbia , 2020. 350 Thousands Unincorporated Incorporated 300. 250. SMALL businesses with fewer than 50 employees 200. 37%. Self-employed 150. without paid help 61%. 100. 50. Businesses with 50. or more employees 2% 0. (Total: 532,400). With paid help Without paid help Source: BC Stats using data supplied by Statistics Canada Source: Statistics Canada / Prepared by BC Stats HIGHLIGHT FIGURE 3 HIGHLIGHT FIGURE 4. SMALL BUSINESS Contribution to GDP by Province, 2020 Export Intensity for SMALL Businesses by Province, 2020.

10 40 % 16 $ Millions 35 30% = Canadian average 14. 30 12. 25 10. 20 8. 15 6 Canada ($ million). 10 4. 5 2. 0 0. BC AB SK MB ON QC NB NS PE NL BC AB SK MB ON QC Atlantic Source: BC Stats using data supplied by Statistics Canada Source: Statistics Canada / Prepared by BC Stats 2 SMALL BUSINESS PROFILE | 2021. HIGHLIGHT FIGURE 5. Breakdown of Businesses by Size in British Columbia , 2020*. Number of Per cent growth growth rate businesses of total 2015-2020 (#) 2015-2020. Total businesses with 0 to 4 employees 444,000 83% 46,000 Self-employed without paid help 326,500 61% 38,100 Businesses with 1 to 4 employees 117,500 22% 7,900 Businesses with 5 to 9 employees 38,500 7% 1,500 Businesses with 10 to 19 employees 25,200 5% 2,000 Businesses with 20 to 29 employees 9,100 2% 600 Businesses with 30 to 49 employees 6,900 1% 600 Total SMALL businesses 523,600 98% 50,700 Total large businesses (50+ employees) 8,700 2% 1,000 Total all businesses 532,400 100% 51,700 * Figures do not add due to rounding Source: BC Stats using data supplied by Statistics Canada SMALL BUSINESS PROFILE | 2021 3.