Companies in Canada - Statistics and facts
Canada has around 1.3 million businesses with employees. A large part of them are located in the province of Ontario, which counts roughly 480,000 locations. Quebec and British Colombia followed, with approximately 270,000 and 200,000 units, respectively. Over 150,000 employer enterprises operate in the industry of professional, scientific, and technical services, representing the largest group. The construction sector had the second largest number of enterprises in Canada. In terms of employment, small businesses employ the highest number of people. By the end of 2020, enterprises with one to four employees counted some 741,000 workers nationwide. Similarly, 236,000 people worked for businesses with five to nine employees. In addition, there are almost three million active businesses without paid employees in Canada. In this sector, real estate, rental, and leasing businesses were the most numerous.
Canada has one the best business environment in the world. In the ease of doing business, Canada ranks 23rd among 190 countries and second in North America, after the United States. This index takes into consideration different aspects of the business regulation implemented in a country. Canada performs outstandingly well in the fields of starting a business, trading across borders, and paying taxes. On the other hand, it does not rank particularly well in getting electricity, dealing with construction permits, and registering properties. When breaking down the various aspects related to the simplicity of paying taxes for businesses, Canada received the highest score (100) in the total tax and contribution rate. Canadian enterprises have a profit taxation rate of eight percent of the total profit, while the highest taxation rate is for labor and contributions, with 12.7 percent of the profit.
The generally good conditions for starting a business makes Canada an important center for start-ups. Indeed, Canada has the fourth highest start-up rate among the global leading economies, after Chile, the United States and Brazil. As of 2020, 8.5 percent of the country's adult population were involved in setting up a new business and the new business ownership rate was the highest in North America. As of 2020, Steel River Group was the fastest growing start-up in Canada. It is a pipeline and construction company from Calgary, Alberta, owned by indigenous people, which collaborates with indigenous communities on infrastructure projects. The leading Canadian start-up for funding received, is Coveo, based in Quebec City. This enterprise specializes in Artificial Intelligence search and recommendation engines.
Despite the good environment, companies in Canada could not avoid the negative economic impact of the coronavirus pandemic. During 2020, roughly 31 percent of enterprises in Canada recorded a loss in revenue of 30 percent or more, while 29.5 percent reported a one to 30 percent decline in revenue. Data on employment sizes show that small enterprises suffered the greatest economic impact. Nevertheless, the Canadian government implemented different measures to mitigate the economic consequences of the pandemic. As of 2021, around 54 percent of businesses surveyed were approved for or received the Canada Emergency Business Account, also known as CEBA, which provides loans to small businesses and not-for-profits. Another plan introduced by the government is the Canada Emergency Wage Subsidy (CEWS), which covers part of the employees' wages for businesses that suffered a loss in revenue due to the COVID-19 pandemic. A further program put in place is the 10 percent Temporary Wage Subsidy for Employers (TWS), which allows a reduction in the amount of payroll deductions for a period of three months.
Canada has one the best business environment in the world. In the ease of doing business, Canada ranks 23rd among 190 countries and second in North America, after the United States. This index takes into consideration different aspects of the business regulation implemented in a country. Canada performs outstandingly well in the fields of starting a business, trading across borders, and paying taxes. On the other hand, it does not rank particularly well in getting electricity, dealing with construction permits, and registering properties. When breaking down the various aspects related to the simplicity of paying taxes for businesses, Canada received the highest score (100) in the total tax and contribution rate. Canadian enterprises have a profit taxation rate of eight percent of the total profit, while the highest taxation rate is for labor and contributions, with 12.7 percent of the profit.
The generally good conditions for starting a business makes Canada an important center for start-ups. Indeed, Canada has the fourth highest start-up rate among the global leading economies, after Chile, the United States and Brazil. As of 2020, 8.5 percent of the country's adult population were involved in setting up a new business and the new business ownership rate was the highest in North America. As of 2020, Steel River Group was the fastest growing start-up in Canada. It is a pipeline and construction company from Calgary, Alberta, owned by indigenous people, which collaborates with indigenous communities on infrastructure projects. The leading Canadian start-up for funding received, is Coveo, based in Quebec City. This enterprise specializes in Artificial Intelligence search and recommendation engines.
Despite the good environment, companies in Canada could not avoid the negative economic impact of the coronavirus pandemic. During 2020, roughly 31 percent of enterprises in Canada recorded a loss in revenue of 30 percent or more, while 29.5 percent reported a one to 30 percent decline in revenue. Data on employment sizes show that small enterprises suffered the greatest economic impact. Nevertheless, the Canadian government implemented different measures to mitigate the economic consequences of the pandemic. As of 2021, around 54 percent of businesses surveyed were approved for or received the Canada Emergency Business Account, also known as CEBA, which provides loans to small businesses and not-for-profits. Another plan introduced by the government is the Canada Emergency Wage Subsidy (CEWS), which covers part of the employees' wages for businesses that suffered a loss in revenue due to the COVID-19 pandemic. A further program put in place is the 10 percent Temporary Wage Subsidy for Employers (TWS), which allows a reduction in the amount of payroll deductions for a period of three months.
