According to Key Small Business #Statistics – 2020 report published by the Government of Canada, there were over 1.2 million small businesses operating in Canada. Then we have 22,905 medium-sized businesses and 2,978 large businesses. If you did not know this already the small business owner is the backbone of our economy.

The report also revealed a survival rate of 45% for a 5-year-old business with #survival rates dropping down to 30% for a 16-year-old business. Before the #pandemic, a business owner or family business faced a 55% probability of permanently closing doors after celebrating their 5th year business birthday. Incredible statistics, right?

What the report did not quantify was how much of business owner’s personal net worth was tied to the business. A metric difficult to calculate but not difficult to presume considering that Canadian banks require collateral or personal guarantees when #business #owners need access to #cashflow management tools such as #credit cards, lines of credit and business loans. Having said that, I cannot help but wonder how we would all feel if our retirement savings had a 55% #probability of going to zero.

I presume when the #Government of #Canada releases their 2021 report, these very same metrics are likely to further decline. As #consumers and as a community, it has never been more important to support small businesses. Going out on your own in the world is a hard thing no matter what you are doing. Now imagine doing that against several big box companies with million-dollar marketing budgets. That’s par for the course. Now, add a pandemic to that list.

Small business owners choose to invest their #life #savings into their business probably because they want to live out their #dreams. No one becomes a business owner because the odds of success are high or because the work is easy.

Small business owners choose to invest their life savings into their business probably because they want to live out their dreams. No one becomes a business owner because the odds of success are high or because the work is easy.

What is this week’s takeaway?

It does not take much to support local businesses with the first step being consciously aware of where you buy your products or services. We need to create the habit of #supporting 97.9% of the businesses in our #country and it all starts with a purchase here and purchase there.

Shop local when you can. Your efforts will make a difference.

Have a great weekend!

Talk soon,

Michael Zagari