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Face of business changed from 2000-2008

Published by Steve Coleman on January 25, 2012

The odds a company would go from small business to out-of-business was about nine per cent a year between 2000 and 2008, according to a new Statistics Canada report.

The eight-year snapshot of the country's business climate says one in 10 businesses were either just entering the scene or making their exit during the period.

Study authors say an average of 10.8 per cent of companies first entered into business during the study period. Nine per cent went out of business. The majority of the turnover was in the small business community.

StatsCan says the businesses that came on the scene between 2000 and 2008 supplied 1.9 per cent of Canadian jobs. The ones that exited the picture accounted for 1.6 per cent of business sector employment.

Based on the number of firms or on employment, there was 20 per cent more entry than exit, on average, between 2000 and 2008. Growth also occurred at the industry level as the number of new faces on the scene topped the number of businesses leaving in 16 of the 18 business sector industries examined.

Based on the number of businesses, entry rates into the marketplace ranged from 6.6 per cent in non-durable manufacturing to 13.5 per cent in professional services. When it came to how many jobs they provided, entry rates ranged from 0.7 per cent in utilities to 3.4 per cent in the education and arts and entertainment fields.

Service providers were more likely to get into business in Canada than a goods-producing company.

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