If you’ve been kicking the tires on a new business idea, now might be the time to take a crack at it.
What happened: The Business Development Bank of Canada (BDC) has launched a new funding initiative focused on helping entrepreneurs who have historically had difficulty securing capital, including young Canadians, those in rural areas, and people with little credit history.
- By helping these entrepreneurs access financing, the BDC expects the number of active small businesses in Canada to grow by up to 10% over the next decade.
Why it matters: Half as many Canadians are starting businesses today compared to 20 years ago, despite record population growth. The trend has corresponded with businesses closing their doors at a rate the country hasn’t seen since the start of the pandemic.
- In June of this year, 5% of all businesses in the country closed down. In the same month, the country saw the lowest rate of new business openings in over a year.
Big picture: Small businesses are critical to the economy, especially as a driver of new jobs. In 2023, businesses with one to 99 paid workers — the range to be considered a small business — made up over 62% of the total employed population in Canada.—LA