Across our province, small local businesses play a central role in our lives. They keep jobs within our communities and provide our essential services with a welcoming face. But did you know that supporting local small businesses has a measurable impact?
In this article, we’ll look at how small businesses drive the economy in BC and how they stack up as compared to large multinational corporations.
The Economic Impact of BC Small Businesses
LOCO BC is a small business advocacy group that researches and demonstrates the beneficial practices and impacts of independent businesses. In late 2019, they produced an Economic Impact of Local Businesses report that highlighted the far-reaching impacts small businesses have on our lives.
Their evidence highlights how a small 10 percent shift in BC consumer spending towards independent businesses would create 14,150 jobs while keeping $4.3 billion within the BC economy each year.
Here are some of the other highlights about small business impacts in BC:
- Independent businesses recirculate up to 4.6 times more revenue in the local economy than multinationals.
- Independent businesses recirculate up to $63 of every $100 in revenue in the local economy, compared to $14 for multinationals.
- Independent businesses produce up to 8.4 times more jobs and up to 8.1 times more revenue than multinationals.
- Independent businesses spend up to 31.4% of their revenue on BC products and services.
- Independent businesses donate up to 24 times more per dollar of revenue to local charities than multinationals.
Small Business Prevalence in BC
Small businesses are more common in western Canada compared to the rest of the country. In 2018, BC had the second-highest number of small businesses per capita.
In 2018, there were a total of 517,100 businesses operating in British Columbia. Small businesses comprise 98 percent of this number, accounting for 1.1 million jobs (2019 Small Business Profile).
They’re also spread throughout the province, with the North Coast and Nechako regions registering a 31.9 percent growth in the number of small businesses between 2014 and 2018.
How Small Businesses Contribute to the Economy
In BC, small businesses play a huge role in the economy by creating jobs, producing goods and services, and supporting economic activity through payrolls.
According to the Small Business Profile 2019, In 2018, small businesses in BC contributed about 34 percent of the province’s GDP – much higher than the national average of 30 percent.
The small business sector represents 53 percent of private sector jobs and nearly one-third of the provincial payroll. And even though there are relatively few international exporters in BC, small businesses are responsible for 32 percent of total provincial goods exports.
Small Business BC is Here to Help
SBBC is a non-profit resource centre for BC-based small businesses. Whatever your idea of success is, we’re here to provide holistic support and resources at every step of the journey. Check out our range of business webinars, on-demand E-Learning Education, our Talk to an Expert Advisories, or browse our business articles.