Small business is big business

So you think small businesses don’t matter?

Too often we think of “small” businesses as just that — “small.” Unfortunately that’s the “story of my life” for many small businesses — we don’t notice them. But I’d like to remind you why it is not in our collective interest to ignore small businesses in our community.

A lot of the time we see small businesses in our community and say, “Oh, that’s nice. We’re glad they’re here, and kudos for those who take the risks to start new businesses.” We even buy from them from time to time. We may even know one or two of the owners personally. They may even be our neighbours. But they rarely get the number one spot in our conscious consumer focus.

The majority of entrepreneurs are between the ages of 40-64 (73.5 per cent), 38 per cent of them have a bachelor or master’s degree from university, and 78.5 per cent of them operate in the service-producing sector.

But, do you really know them and their businesses and the critical, vital role they play in our economy every day?

I think we need a constant reminder of the vital role small businesses play in the local economy. Just take a closer look the next time you drive down Charlotte Street in Sydney, or along Commercial Street in Glace Bay, or any street in your economic district, and note the number of SMEs (small and medium business enterprises) that occupy the spaces there.

And who hasn’t given directions to someone by referring to a local business with which everyone identifies. They are part of the history, part of the “furniture” of our community. They are everywhere.

While we may not notice these small businesses as readily as we might the big box stores, be aware that 97.9 per cent of all employer businesses in Canada are small businesses (employing between one and 99 people). While that number is a national figure, it is extrapolated to the individual community, even ours.

The Sydney and Area Chamber of Commerce reports there are 2,500 businesses in the Cape Breton Regional Municipality alone. If you use the national ratios previously stated, that means there are 2,447 small businesses locally.

It has long been celebrated that small and medium business enterprises are the backbone of the Canadian economy — or any economy, for that matter. And while they are everywhere, by their sheer size they tend to get overlooked in favour of the big box stores or franchises that dot the horizon.

They are employers. Most Canadians identify small businesses as those that employ between one and 99 employees. We tend to think that most are closer to one than 99. In fact as of December 2015, small businesses employed 8.2-million people or 70.5 per cent of the total private labour force in Canada.

Research shows that between 2005 and 2015, the contribution of small businesses to net employment change was 87.7 per cent. When people are out looking for a job, they are regularly drawn to the larger businesses first, thinking they represent the “better opportunity” in the community. As a result, small businesses may experience a more difficult time recruiting the very best, skilled labour force with which to operate.

Every employee that a small business operator employs represents money from the CBRM staying in the CBRM, not being exported to some international headquarters where we’ll never see it again or the impact it might have had, had it stayed in the CBRM.

We have a huge cruise ship business that just keeps growing every year. When those thousands of passengers disembark, they’re not looking to shop at big box stores, they’re looking for local — something that speaks to the culture and character of the community.

They are economic engines. Research indicates that small businesses contribute an average of 30 per cent to the GDP (gross domestic product) of their province. GDP is a great indicator of the standard of living in an economic area, and so, small businesses make a significant contribution to our current standard of living.

Approximately 25.2 per cent of all exports are by small and medium business enterprises. The reality of those Canadian exports is that over 88 per cent of them go to the United States. We tend to think that SMEs aren’t exporters, but today, with a computer hooked to a reliable internet service provider, any size business can be an effective exporter.

It is almost mandatory today that all businesses, small or large, have an online sales presence if they expect to keep up with the consumers buying behaviour. Online purchases are growing steadily year over year.

Say it as you will, innovation is believed to be the “oxygen” of a business, without it you die. Research for innovation is not cheap, and so, many people believe small businesses don’t have enough money to innovate. In fact, in 2014, over 41 per cent of small businesses surveyed indicated they had implemented at least one type of innovation.

Small- and medium-sized businesses have, and will continue to be the backbone of our economy and it is incumbent upon us all to support the establishment and growth of more small businesses to maintain and ultimately improve our community’s standard of living.

It’s time to think big about small business.