In Canada as of 2021, small businesses made up 98.1% of all employer businesses and employed 10.3 million people or almost two-thirds of the total labour force. (1) As for the US, the small business economy is the third largest in the world in terms of GDP, accounting for 65% of all new, net jobs created since 2000 and employs 61 million people. (2)
Small and medium size businesses are clearly major contributors to both local and global economic vitality. Communities need to be actively involved in retention efforts to ensure local businesses are resilient enough to weather external pressures such as an aging population, natural disasters/pandemics and rising inflation.
So, who in our communities can make a difference? Who among us is influential enough to shift the tides? These are questions we often ask ourselves in the face of any social issue that makes us feel particularly small and insignificant. Perhaps, Vincent van Gogh felt similarly during his lifetime which is why he left us this bit of wisdom: “Great things are not done by impulse, but by a series of small things brought together.”
And it’s true, isn’t it? Often the little things in life are what spark change and action – a conversation with a friend, reading a book or watching a documentary, deviating from a routine. In the same way, everyone at every level of a community has a hand in ensuring ongoing shared economic prosperity. From the consumer who consciously shops local and ensures sixty-seven cents of every dollar stay in the community, (3) to the chambers of commerce member who introduces the possibility of facilitating educational workshops for business owners, everyone has a part to play.
If you are an advisor who works with business owners, consider starting the year off strong by helping your clients define their business strategy. Help them:
1. Conduct a SWOT analysis – list the strengths, weaknesses, opportunities and threats related to business succession planning readiness
2. Plot weaknesses and threats onto a risk mapping chart
3. Plot and prioritize risk mitigation and opportunities initiatives on a project prioritization chart
4. List out the next steps to develop their business succession action plan
If you are a business owner looking to get organized and implement a strategy for the next 12 months, try this free RFN Academy resource that was created in collaboration with CEPA Julie Keyes of KeyeStrategies. This exercise is a bare minimum approach to achieving our goals when we may be feeling stuck or overwhelmed and don’t have a ton of free time to devote to strategic planning.
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(1) https://www150.statcan.gc.ca/n1/pub/11-621-m/11-621-m2022004-eng.htm
(2) CIA World Fact Book 2020; Bureau of Labor Statistics Business Employment Dynamics Report 2020; Small Business Administration, Small Business Profile 2021
(3) Source: American Express Small Business Economic Impact Study 2021
