Small Business Week

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There's no shortage of news about big companies facing major upheavals as they deal with the fallout of the global financial crisis, butsmall businesses make up an enormous portion of the Canadian economy and they're also coming to grips with their own set of challenges.

Industry Canada defines a small business as a company with fewer than100 employees, and Statistics Canada says there were just over 1 millioncompanies across the country fittingthat description in July 2008 (and that tally does not include self-employed entrepreneurs).

Put another way, 98 per cent of firms in Canada fall into the small business category, and about 139,000 new ones are created each year.

A Canadian federal government study estimated that small business accounted for 80 per cent of total job growth for the 10 years between 1993 and 2003, or 747,000 new jobs.

About a quarter of those businesses produce goods, with the remainder providing services. They employ more thanfive million people (about 48 per cent of the private-sector labour force), spend a higher percentage of their revenue on research and development than largecompanies do,and generate roughly a quarter of Canada's gross domestic product.

Small businesses don't have it easy. According to StatsCan figures, three out of every 10 new small businesses fails in the first year,half make it to three years, and only 25 per cent are still in business after nine years. And that was before the financial crisis hammered the economy and tightened access to the credit and loans that grease the operations of many small businesses, whether they're buying new equipment, meeting payrolls or buyingraw materials and inventory.

In a poll of more than 400 small business owners across the country conducted between Sept. 29 and Oct. 6 by Ipsos Reid for American Express Canada,41 per cent of respondents said they are already feeling a negative impact from the current economic environment.Another 25 per centsaid theyexpect the problems in the global economy will hurt their business in the coming months.

In the same poll, one in six respondentswas worried about the short term viability of their business, andone quarterof those polledacknowledged that their company will have serious problems in the near future if sources of credit dry up.

Small Business Week runs from Oct. 20 to 24, saluting Canadian entrepreneurs even as they face increasingly daunting economic times.CBC News has assembled an array of features about some of the issues facing small firms in Canada, as well as resources for entrepreneurs launching and nurturing small business ventures. Check this page throughout the week for new additions.

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Features:

• Small-business FAQ: Frequently asked questions and interesting statistics about the small business segment of Canada's economy, and how small firms are weathering the rough economic seas.
• Women in Canadian business: Female entrepreneurs are taking the small business scene by storm.
• Top 10 tips for small businesses:Wisdom gleaned from the latest season of CBC'sFortune Huntersthat should come in handy whether you're trying to decide whether to launch a venture orfiguring out ways to take an existing business up a few notches.
• Dress shop owner Tisiano Giustitalks about how the economic downturn has affected his business and what he thinks government can do for small businesses(Newsworld interview runs 4:13).
• Hit or Miss: Think your business idea is too off-the-wall? Here are some of the wackier ideas from the lastest season of CBC'sFortune Hunters.
• Operators of an eco-friendly car washsay staying on budget is the key to a successful business plan (Fortune Hunters interview runs 1:29).
• ChickAdvisor.com chiefsays be prepared to make sacrifices to achieve small business success(Fortune Hunters interview runs 1:29)
• Know your own strengths and weaknesses, saydance school owners(Fortune Hunters interview runs 2:51).
• Forbes.com list:America's best 200 small companies
• Fortune Hunters:Programming for entrepreneurs from CBC Television, exploring how people eager for self-employment are exploiting new trends and opportunities.

Things small businesses need to know:

• Recession 101:The dreaded 'R-word' explained, and what it means for your business outlook.
• When paper meets rock: The real effects of the credit crunch on average Canadians, and what it will do to their buying power.
• Minimum wage laws:Labourlegislation in Canadaand how minimum wages compare across the country.
• Marketing tips: How to get the word out and generate buzz about your business and not go broke doing it.
• Canadian small business ownerspoorly prepared for retirement: Study
• Restaurantswill find it hard to pass costs onto consumers: experts
• Visa, MasterCard fee hikessuggest price fixing: business group
• Succession planning for your e-commerce site:Online businesses outlive their owners, so here are some tips forplanning.
• Consumer profiling: How Canada's largest retail grocery chaincategorizes its customers.