OECD Workshop SME Data Collection Statistics Canadas Experience

OECD Workshop SME Data Collection Statistics Canada’s Experience Presented by: Terry Evers Director, Small Business and Special Surveys Statistics Canada

Opening Remarks l l Work in Progress Challenges l l l Budget and resources Definition of SME Information needs Identifying / linking data sources Standardizing definitions and concepts Statistics Canada

Introduction l l Statistics Canada organization What lead up to identifying the need for data on SMEs l l l Free Trade / Globalization / New economies (KBI) / Need for Innovation Economy driven to large extent by SMEs Need to know what impact SMEs are having on the Canadian economy Statistics Canada

Early Data on SMEs l l Limited scope, specific objectives, partial picture of SMEs Funded by Provincial Governments and Industry Canada Statistics Canada

Small Business Profiles l l Coverage – Incorporated & non-incorporated businesses ($30, 000 - $5 M) Data Source – Tax returns (CCRA) T 2 electronic / T 1 paper tax return l l Usage – Enables firms to compare themselves to typical firms in same industry, revenue size & province Statistics Canada

Small Business Profiles (Cont. ) l l l Users – Industry Canada, Finance Canada, Provincial and Territorial Ministries of Finance, businesses and consultants Data Availability – Bi-annual since 1993 Limitations Timeliness; T 1 sample size; Industry level of outputs available l Statistics Canada

Employment Dynamics l l l Coverage – All employer businesses Data Source – Administrative Data (T 4 slips) Usage – Business entry and exit; job creation and loss by geographic area and industry Statistics Canada

Employment Dynamics l l l (cont. ) Users – Industry Canada, Provincial and Territorial Governments Data Availability – Annually since 1996 Limitations Latest data covers 1983 -99 Data is by establishment so hard to reconcile with labour statistics which is by enterprise l l Statistics Canada

Small Business Financing Supply Side Survey l l l Coverage – Enterprises » $5 M in finance & leasing Data Source – Administrative data from banks, finance companies, portfolio managers, venture capital companies, financial funds Usage / Users – Discussed in T. Davis’s paper on Needs from a Canadian User Perspective Statistics Canada

Small Business Financing Supply Side Survey (cont. ) l l Availability – Reference year 2000 and 2001 Limitations Using authorization size as proxy for business size Can’t relate outcomes to Demand Side which is based on business size (employment) Excludes GBEs; not-for-profit orgs; angels; foreign suppliers l l l Statistics Canada

Small Business Financing Demand Side Survey l l Coverage – « 500 employees & « $50 M revenue Data Source – National sample survey of businesses to determine nature and outcome of requests for financing Follow-up survey of all businesses who indicated that they had requested financing (approx 25%) to determine sources and importance of financing Usage / Users – Discussed in T. Davis’s paper on Needs from a Canadian User Perspective l l l Statistics Canada

Small Business Financing Demand Side Survey (cont. ) l l Availability – Reference year 2000 and 2001 Limitations Sample sizes limits detail available on selected financing characteristics No data on importance of financing to failed start-ups and failed businesses l l Statistics Canada

Next Steps l l l Inventory of data on SMEs at Statistics Canada Reviewing direction and priorities for Small Business Financing Initiative – frequency and scope of surveys Reviewing survey content l l Obtaining business size on Supply Survey Including attitude questions on Demand Survey Statistics Canada

Next Steps l l Conduct more detailed investigations into other sources of financing (Angels, GBEs), Women Entrepreneurs, Importance of financing as it relates to business cycle (start-up, steady state, fast growth) Historical analysis using 3 years of data available from the Demand Supply Survey Statistics Canada