- New report highlights SMBs’ role in driving economic recovery in Canada and globally, using historic insights from the 2007-2009 recession to predict future growth trends to 2025
- Numbers of new SMBs’ forecasted to increase by 1.7% annually in eight countries between 2022 and 2025
- Number of new Canadian SMBs is forecasted to increase by 3.9% between 2022 and 2025
TORONTO, Jan. 10, 2023 (GLOBE NEWSWIRE) — The “SMBs Driving Economic Recovery” report from Sage – the leader in accounting, financial, HR and payroll technology for SMBs – today reveals that, despite ongoing economic turbulence, Canadian SMBs have become increasingly resilient against macro headwinds and will continue to make significant contributions to the Canadian economy, increasing employment by 3.9% from 2022 up until 2025.
Commissioned by Sage and published in partnership with The Centre for Economics and Business Research (Cebr), the analysis examines the role of SMBs in driving economic recovery across eight key markets – Canada, the U.S., the U.K., Spain, Germany, France, Ireland and Portugal, assessing data from 2005 onwards to forecast growth trends between 2022 and 2025.
The study further outlines the role of SMBs in powering global economies, with the sector showing no signs of slowing. By 2025, Cebr forecasts that the number of Canadian SMBs will grow by 52,000, and by nearly 1.3 million globally based on the studied countries.
Historical market analysis by Cebr, also underlines the vital role of SMBs in the economic bounce back from the 2007-2009 global financial crisis, projecting a similar path ahead. By 2015, SMBs in Canada employed 13.2 million people, seeing a combined employment increase with the U.S. of 4.7 million in 2015 compared to 2010, a clear signal of the importance SMBs have to the broader economic recovery.
“As we continue to navigate through another challenging economic period, we wanted to quantify the important role SMBs have in the global economy,” shared Mark Hickman, Managing Director in Canada for Sage. “Business owners face many challenges, yet they continue to stay resilient in times of economic crises, paving the way for recovery as generators of employment and through economic growth. Despite SMBs representing 99.8% of businesses in Canada, they won’t drive growth by osmosis and need continued support to ensure business resilience amid the economic crisis.”
Of all the sectors contributing to growth, the professional, scientific, and technical sector in particular, made strong gains from digitalisation and were crucial for recovery across the eight markets. For example, the number of employees in Canadian SMBs within these industries increased by 144,000 between 2009 and 2015, making up 15% of the total increase in the number of individuals employed by an SMB.
“We’re continuing to learn how to navigate this changing economy and the new challenges that have arised. We’ve prioritized our digital transformation journey to diversify our business offerings and enhance workforce-appeal,” said Zeb Khandwala, CEO, of Toronto-based waste management facility, Bay Polymers. “By prioritizing the digitization and automation improvements, we’re able to save time using environmentally friendly systems, which in turn has increased hiring of skilled talent, business output, and profits.”
Note to editors
Working with Cebr, economic consultancy, Sage has researched eight markets globally to understand SMBs’ role in driving economic recovery, and using historic insights from the last recession in 2007-2009, predict trends up until 2025.
To download the full research report, visit www.sage.com/en-gb/company/digital-newsroom/
About Sage
Sage exists to knock down barriers so everyone can thrive, starting with the millions of Small and Mid-Sized Businesses served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relationships with customers, suppliers, employees, banks and governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and the climate crisis.
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