5 Reasons Why Canadian Small Businesses are Important

This blog post is sponsored by Thinking Capital. Read our advertiser disclosure.

If you didn’t know already, Thinking Capital loves small businesses. We are a lender that offers financing to Canadian small and medium-sized business owners, and we’ve supported over 15,000 small businesses since 2006.

By combining financing expertise and technology, we are transforming the way business owners get the capital they need to grow. One way we stand out from other lenders is that we partner with trusted banks, payment processors, and innovators, such as CIBC, Moneris, and Borrowell. Partners like these help us provide small business owners with better access to capital – and that’s what we’re all about. We believe that small businesses are the heart of communities across Canada. Local business owners inspire, support and represent their neighbours, and we think that’s something to celebrate. In honour of Small Business Month, we are dedicating the whole month of October to small business, starting with the top five reasons Canadian small businesses are important. Be sure to check out our exclusive cash back offer at the end of this blog post!

Top Five Reasons Canadian Small Businesses are Important

1. Small businesses create meaningful jobs

According to Industry Canada, 97.9% of all businesses in Canada are small businesses (as of December 2015). On top of that, from 2005 to 2015, 87.7% of all new jobs (1.2 million jobs) were created by small businesses. Not only do small businesses create a significant percentage of new jobs, but the jobs they create provide high levels of job satisfaction. It's easier to take pride in your work and to feel as if you’re making a real difference when you have a direct relationship with your boss and fellow employees than when your company is run by executives you rarely speak to.

2. Small businesses drive innovation

The top three industries attracting entrepreneurs in Canada are retail, construction, and professional services. Small businesses tend to be early adopters of new technology, be more agile to changing trends, and creatively build teams that possess an incredibly diverse set of skills. Small businesses produce nearly 35,000 new Canadian entrepreneurs each year. Through the Innovative Solutions Canada program, The Government of Canada is inviting small businesses to develop innovative solutions to new challenges; helping them commercialize their innovations, scale up their business and create good middle-class jobs across Canada.

3. Small businesses grow the economy

The financial impact of small businesses goes beyond their employees. When a company is owned by people who live in your community, the money tends to stay local, and that boosts the area’s economy. Neighbourhood stores take out small business loans from nearby banks, shops purchase goods from local suppliers, and on and on. As of 2017, small and medium-sized businesses contribute 41% of Canada’s gross domestic product. In 2017, 41.9 percent of Canada's exports of goods was attributable to small businesses. Locally or nationally, small business is a vital piece of the economy.

4. Small businesses represent the community

Independently owned restaurants, pharmacies, boutiques, and businesses reflect the culture and needs of their neighbourhoods. Local cafes feature regional specialties, and shops may supplement their inventory based on the demand in their particular community. Women lead or co-lead a third of small and medium-sized businesses in Canada, and there are nearly 1 million Canadian female business owners who contribute more than $117 billion annually to the Canadian economy.

5. Small businesses open opportunity for flexible work and lifestyles

Each year, more and more Canadians are choosing to work from home. The growing number is fuelled by the increasing desire of entrepreneurs to trade the 9-to-5 workday for career flexibility. Micro-enterprises (firms with 1 to 4 employees) account for 54.1% of all private employers across Canada, and most of these are home-based businesses. Working from home cuts down on commuter traffic, offers unique business tax deductions, and allows for more creative and quality time with friends and family.

Small businesses are the backbone of our economy and employ over 8 million hard-working Canadians. To celebrate Small Business Month, we are extending a special offer to our partners and their clients (that’s you!) to give back to the Canadian small businesses that support our communities.

From October 1-31, get 3% cash back for any financing you need to help grow your business!

How do you get in on this special promotion?

1. Apply here during the month of October*.

2. Get funded.

3. Receive your cash back shortly after your financing.

We believe in your small business and we hope you’ll take advantage of our special offer today!

*You must apply during the month of October -Promotion is valid during Small Business Month (October 1-31, 2019). Make sure to use the link provided. If you apply over the phone, don’t forget to mention you are a Borrowell client to benefit from the offer.