Table of contents
- Canadian businesses are avoiding debt financing
- They are largely unaware government funding is available
- PME MTL – Social Initiatives
- The ESSOR Program – Component 1B
- Grow Your Business Online
The role of small businesses in employing Canadians and contributing to the economy is nothing less than pivotal. 86.7% of all employer businesses in the country had between one and 19 employees in 2023, according to a survey. They had 5.2 million employees, accounting for just under 30% of the total. Businesses with 20 to 99 staff members made of 11.2% of all employer businesses. Their staff comprised 32.5% of the total employed population or 5.7 million individuals.
Canadian businesses are avoiding debt financing
The same survey found that 72.9% of businesses with up to 19 employees did not intend to take out a conventional loan in the next three months. The number was slightly lower (66.5%) for businesses with 20 to 99 employees and 64% for those with at least 100.
23.2% of the businesses with the fewest employees and 13.2% of those with 20-99 said they didn’t plan on applying for a loan from a traditional lender because they were unable to take on more debt. Less than 8% of companies with 100 or more employees were in this situation. These trends have persisted throughout 2024.
They are largely unaware of the government funding available
The Canadian government has subsidies for small businesses, like providers of web hosting in Canada, to foster economic growth and innovation. These subsidies and grants fund activities like staff training, research and development, expansion, etc.
At the same time, just 42% of small and medium-sized business owners are aware of the government programs and funding opportunities available to them. However, they don’t know how to apply. Almost a third (32%) are not aware of government grants and subsidies.
PME MTL – Social Initiatives
This program offers up to $50,000 in resources and grants to support projects aimed at developing new expertise or exploring innovations and new sectors. FDÉS (Fonds de développement de l’économie sociale) supports projects in the area of social economy that have a formal entrepreneurial approach and explore new sectors. Small businesses are eligible if they are involved in technological acquisition, capital expenses, and professional fees.
The ESSOR Program – Component 1B
Component 1B of ESSOR provides grants for digital plans and diagnostics and implementation plans. It’s only available to businesses in Quebec. The project has to start within three months of approval and include selecting tech solutions and similar activities. Funding is capped at $20,000 per application and covers up to 50% of eligible expenses.
Grow Your Business Online grant
This grant, provided by the Canada Digital Adoption Program or CDAP, helps small and medium-sized businesses get online, adopt security software, increase sales, connect with customers, and improve online user experience and social media marketing.
For-profit businesses that are registered or incorporated are eligible, including cooperatives and for-profit social enterprises. In addition, the business must have at least one employee, sell directly to consumers, and maintain a digital adoption strategy for half a year. Brokerage firms, dropshipping businesses, and online resellers are not eligible.
As the CDAP ends on March 31 next year, businesses can only apply for the online grant until September 30, 2024.
FAQ
What criteria must small businesses meet to be eligible for Canadian government funding?
Most Canadian government funding programs require applicants to have been incorporated for two or more years and have at least four payroll employees. The programs for unincorporated small businesses entail limited funding. Applicants usually need to submit a current income statement and balance sheet.
What are the most successful online businesses in Canada?
According to the most recent data, businesses such as e-commerce, blogging, affiliate marketing, and YouTube channels are highly lucrative in Canada.
What is the best online business to start in Canada?
- A clothing line
- A dropshipping business
- Selling art online
- Becoming a freelance developer or designer
- Teaching an online course
- Starting a newsletter or a blog.
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