Family Business: A Major Player in Canada’s Economy

Family business is integral to Canada’s economy, according to a recent study by Family Enterprise Xchange*. As major contributors in the areas of employment, goods and services produced, growth and longevity, family enterprises are an important opportunity for industry professionals to educate themselves and strategize, as the biggest threats to the continuity of family enterprise are demographics, tax policy and a lack of trained advisors.

Employment: According to the report titled Family Enterprise Matters , family businesses employed 6.9 million people in 2017. This works out to be nearly half of all private sector positions, and over a third of all jobs. Of the 6.9 million employed by family businesses, 6.4 million (or 90%) were employed in small and medium-sized family enterprises.

The top 4 economic sectors for employment in family businesses in 2017 were:

• Agriculture (80% of employment in 2017)
• Transportation and warehousing (85.4%)
• Accommodation and food services (71.3%)
• Construction (68.5 )

Goods and Services Produced: “Family enterprises directly generated approximately $574.6 billion in 2017—48.9% of GDP originating from the private sector” says the report. This includes some $191.9 billion produced by large family enterprises (large business is defined as 500+ employees in Canada), which works out to be 34% of all Gross Domestic Product (GDP) generated by large companies.

Growth and Longevity: Looking at the growth and longevity of family businesses in Canada, we will focus on a few key areas.

• Revenue of family firms expanded 14.6% between 2007 and 2013. This is compared to data on non-family firms reporting 13.9% growth in the same period.
• The survival rate of family firms is 70.1% between 2007 and 2013. This is compared to non-family firms, of which only 65.2% operating in 2007 were still operating in 2013.

How can you help? Advisors and those working in the financial industry can increase their education and training to service family owned businesses and incorporate a multi-generational discussion with those involved in the framework of accumulation, growth, preservation and transition.

Additional Educational Resources: Join us in Puerto Vallarta, Mexico November 9 & 10^th for the Business Builder Retreat and experience a unique educational event designed especially for enterprising business owners who are on an exponential growth path. Can’t attend? Enrol in the online MFA ™ - Executive Business Growth Specialist Designation program. Or, combine live and self-study and enrol in the online designation program and the Business Builder Retreat is included in your tuition.** Enrol or take a free trial today.

* Family Enterprise Matters

**Does not include flights and hotel.

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