Calgary, October
14, 2009 – Four
Saskatchewan cities are leading Canadian Small Business “Hotbeds” according
to a study released today by BMO Financial Group. Saskatoon ranked
in the Top 10 of Canada’s
large urban centres and Lloydminster, Swift Current and Estevan placed
in the Top Ten list of Canada’s small urban centre “Hotbeds.”
The rankings, released today
by BMO Financial Group, measure the intensity of small business activity
in communities across Canada. The Top 10 Lists
show that Saskatchewan communities are leaders among Canada’s 33
large urban and 111 small urban communities. The rankings confirm that
the province’s small businesses are emerging from the recent recession.
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 its 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.
“Saskatchewan businesses will be resilient, especially in the
long term,” said Robert Hayes, Senior Vice President, Prairies
Division, BMO Bank of Montreal. “Compared to a year ago, when small
and medium sized enterprises were in a cautious and quiet mode and had
pulled back from buying new equipment or expanding their operations,
they are now starting to talk to their bankers and there is a new sense
of optimism from an economic and financial point of view. “
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. Hayes.
BMO Economics examined the latest data to assess small business strength
in communities across Canada, by ranking the number of small business
enterprises per one thousand of population to uncover the current intensity
of small business in particular communities. 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 five year view,
the CMAs with the strongest growth in the number of small businesses
were located in three regions: Ontario’s
Greater Golden Horseshoe region (Toronto, Guelph, Oshawa, and Barrie);
British Columbia’s Lower Mainland and southern Vancouver Island
(Abbotsford, Vancouver and Victoria); and Alberta’s Calgary-Edmonton
corridor.
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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