SME Succession: Update
For more details
SME Succession: Update
Full Report
October 2006
Doug Bruce, Director of Research
Introduction
Time is rapidly catching up with more and more Canadians. As the population ages, it creates greater stresses and challenges for our health care system, pension policy, and labour markets to name a few. A significant level of resources, private and public, have been devoted to better understanding the demographic nature of these topics and how Canada as a nation can continue to provide its work force and retirees with strong, sustainable social programs. However, one aspect of public policy that is in need of further study is the impact of an aging small and medium-sized enterprise (SME) sector.
Succession planning is critical to the business owner and the SME sector. It also has major implications for the future of Canada’s overall economy and job creation potential. Seventy-five per cent of all businesses in Canada employ fewer than five employees and almost 60 per cent of employed Canadians work for a small or medium-sized business. In addition, the SME sector contributes approximately 45 per cent of Canada’s economic output and is the catalyst for innovative products and services.
