The employment environment without SMBs
Many people couldn’t imagine being in a world where small and medium-size businesses (SMBs) didn’t exist. Ultimately, there are so many goods that wouldn’t be produced any longer or services that wouldn’t be available.
An even bigger impact might be the fact that without these companies, thousands of Canadian entrepreneurs wouldn’t be able to realize their dreams. Plus, the elimination of these companies would mean the loss of thousands of other jobs.
The impact of a Canada without SMBs would mean so many adverse effects on the national as a whole, but how can this be quantified?
Effect on employment would be staggering
If SMBs weren’t in existence, the employment landscape in Canada would be completely unrecognizable, because it would not only affect owners, but each and every person working for the company. Moreover, it would probably affect a number of larger businesses employed by smaller firms, like cleaning companies or maintenance workers, because the demand wouldn’t be there.
According to Statistics Canada, about 47.8 per cent of the Canadian workforce is employed by small businesses with fewer than 100 workers. An additional 15.8 per cent work for medium-sized firms with between 100 and 499 on staff. This equals out to 63.7 per cent of individuals currently with jobs who would no longer be employed if SMBs dissolved, representing more than 6 million Canadians.
Obviously, if more than 6 million suddenly found themselves out of jobs, the effects would be awful on the entire economy. This means that a number of families would struggle to put food on the table and keep a roof over their families’ heads. This then leads to lower spending and less investment, potentially affecting every corner of the economic landscape.
How can this be avoided?
A number of experts would agree that chances are good that SMBs across the board are in no danger of disappearing, because they add so much to the culture and economy. However, there are steps that can be taken to make certain this continues into the future.
For instance, investing in SMBs is likely a good idea—after all, they make revolutionary merchandise and offer services and personalization larger companies can’t. Promoting their wares more often might mean more consumers spending at these businesses, so that may also be a worthwhile approach.
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