Statistics Canada defines businesses with fewer than 500 employees as Small-Medium Sized Enterprises (SME), whereas firms with 500 or more employees are classified as “large” businesses.” An overwhelming number of businesses in Canada fall under the SME category, with 98% of the overall Canadian private business sector standing at less than 100 employees. As of 2011, SME’s employed approximately 5 million people across Canada — nearly half of the total private sector labour force. These statistics outline the extent to which SME’s contribute to the marketplace, occupying a significant percentage in the Canadian economy and job market.
Increasing Demand for Small Business Funding Grants and Loans
Despite their significant share of the Canadian employment and wealth creation, only half of SME’s survive the first five years in the marketplace. Statistics Canada (Figure 3 Source: Statistics Canada, Small and Medium-Sized Enterprises Data Warehouse, 2008) reports that survival rates for Canadian businesses that enter the marketplace deteriorate over time, as 70% of SMEs survive their first two years, and only 51% percent survive the five-year mark. Statistics Canada attributes this to varying factors that play into the probability of survival, such as location, industry/market trends, and ability to access capital and funding for small business expansion.
Leveraging Expenses with Canadian Government Grants for Small Business
Standing in the ranks of such a turbulent, yet valuable demographic, there are a number of ways business leaders can offset the economic impact of these hindrances by employing Canadian Government funding mechanisms. SME’s remain important for creating jobs and wealth—and have accordingly garnered the attention of policy-makers as a key vehicle to overall economic health. Building a diversified funding portfolio can be a key strategy to survival as a SME. Using funding mechanisms can help leverage costs associated with various business objectives, including:
- Scientific Research & Experimental Development ( SR&ED )
- Business Funding Grants for Capital Investment
- Ontario Government Grants for Hiring Skilled Labour
- Small Business Government Grants for Marketing and Business Expansion
These initiatives are intended to help SMEs achieve growth—and essentially improve the overall competitiveness of the Ontario economy.
Expert Support and Sourcing for a Canadian Government Funding Strategy
For a diversified funding strategy, Mentor Works Ltd. is recognized for their success in mapping a government funding approach to each of your strategic initiatives. In addition, the Mentor Works Team also provides support to help their clients throughout the application process and follow up with advice and information regarding potential incentives and SR&ED tax credits.
In our working relationships with our clients, it becomes clear how Canadian Government funding strategies can be an integral part of successful business growth and sustainability. The sedimentary nature of government funding allows you to apply multiple programs against multiple aspects of your business initiatives.
Take initiative and challenge the odds that stand against the average SME. Mentor Works will help you to define your own success by driving your business strategies forward. We work diligently to educate and coach your business for long-term success, ensuring your business outlasts the five-year mark.