Vancouver, October
14, 2009 – British
Columbia’s large and small
urban communities are national “hotbeds” for small business
growth and activity according to a report released today by BMO Financial
Group.
From 2004 to 2009, British
Columbia’s Lower Mainland and southern
Vancouver Island communities were national leaders in small business
growth.
British Columbia also boasts
two first place “Hotbed” finishes
as Kelowna and Fort St. John lead Canada-wide rankings for the intensity
of small business activity in larger and small urban centres. Vancouver,
Victoria, Abbotsford and Salmon Arm also claimed Top 10 spots in the
report.
The province has long been among those with the highest number of small
businesses per capita, because of an economic makeup that includes tourism,
resources, construction and professional service firms. British Columbia
also has the advantages of the preparations for the 2010 Winter Olympics
in Vancouver and strength in transportation services to facilitate growing
trade with Asia.
These findings are part of
a study, entitled Canada’s Small Business
Juggernaut, by BMO Financial Group’s Chief Economist Dr. Sherry
Cooper. The report, a post-recession perspective of this vital segment
of Canada’s economy offers an optimistic prognosis for Canadian
entrepreneurs. Among the report’s conclusions: not only will the
great majority of Canada’s small businesses survive the recession,
but also, as the recovery continues, many will become stronger than ever.
“Today, business understands the importance of maintaining sufficient
capital to ride the cyclical bumps,” said Dr. Sherry Cooper, Chief
Economist, BMO Capital Markets. “There is a new appreciation for
the dangers of building up too much overhead or overinvesting in every
new technological system. Companies that survived the recession will
have learned to be flexible, to be low-cost/high-value businesses.
“This report confirms what we’re seeing. This has been a
challenging year, but we see surprising resilience and emerging confidence
from our small business customers,” said Derral Moriyama, Senior
Vice-President, Commercial Banking, Greater Vancouver Area, BMO Bank
of Montreal.
Although a moderate economic
recovery is underway, Dr. Cooper cautioned small businesses against
settling into a comfort zone. “’Business
as usual’ is a concept of the past, as economic forces are subject
to intense volatility and change. Whether it’s expanding into unknown
markets, refocusing customer bases, or jettisoning non-core businesses,
successful enterprises should not be afraid to forego the familiar and
embrace the risks that can lead to higher rewards. But prudent analysis
of the risks and opportunities is essential.”
“BMO is working hard to be there for our business customers, to
ensure they have the banking solutions and advice they need to take their
companies into the future,” said Mr. Moriyama.
BMO Economics examined the latest data to assess the intensity of small
business activity in communities across Canada, by ranking the number
of small business enterprises per one thousand population. This was done
for large centres by looking at each of the 33 Canadian census metropolitan
areas (CMAs), and for small centres by examining each of the 111 Canadian
census agglomerations (CAs).
Looking at the 33 CMAs, growth
leaders are located in three regions: Ontario’s Greater Golden Horseshoe region (Toronto, Guelph, Oshawa,
and Barrie); Alberta’s Calgary-Edmonton corridor; and British Columbia’s
Lower Mainland and southern Vancouver Island (Vancouver, Abbotsford,
and Victoria).
TOP 10 CMA SMALL BUSINESS GROWTH, 2004-2009 (% change in number)
1. Toronto, ON (15.1)
2. Guelph, ON (13.8)
3. Abbotsford, BC (10.2)
4. Vancouver, BC (9.3)
5. Oshawa, ON (9.1)
6. Kelowna, BC (8.4)
7. Calgary, AB (7.4)
8. Barrie, ON (6.6)
9. Ottawa-Gatineau, ON/QC (6.3)
10. Victoria, BC (6.1)
Canada’s Small Business “Hotbeds” communities with
the greatest intensity of small business activity are dominated by British
Columbia, Alberta and Saskatchewan centres. Other centres include: St.
John’s, NL, Moncton, NB, and Toronto, ON.
TOP 10 CMA SMALL BUSINESS HOTBEDS (# small businesses/1,000 pop)
1. Kelowna, BC (39.7)
2. Calgary, AB (38.9)
3. Vancouver, BC (37.2)
4. Edmonton, AB (36.6)
5. Victoria, BC (35.0)
6. St. John’s, NL (32.9)
7. Moncton, NB (32.4)
8. Abbotsford, BC (32.2)
9. Saskatoon, SK (31.9)
10. Toronto, ON (30.0)
TOP 10 CA SMALL BUSINESS HOTBEDS (# small businesses/1,000 pop)
1. Fort St. John, BC (71.2)
2. Lloydminster, AB/SK (69.0)
3. Canmore, AB (57.9)
4. Camrose, AB (54.9)
5. Okotoks, AB (54.1)
6. Grande Prairie, AB (53.8)
7. Brooks, AB (51.0)
8. Swift Current, SK (51.0)
9. Salmon Arm, BC (50.4)
10. Estevan, SK (50.2)
The complete report can be found at www.bmocm.com/economics.
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