Executive summary
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This paper adds to our understanding of the contributions made to the economy by small, medium-sized and large businesses in Canada. It does this by examining the shares of gross domestic product (GDP) produced by each of these size groups in the business sector.
Previous studies relied predominately on employment, an input to the production process, rather than on a measure of output. This study overcomes this problem by focusing directly on GDP.
The paper estimates business-sector GDP by business-size class for 2005. The contribution of large businesses with 500 or more employees to business-sector GDP was 45.7%. Small and medium-sized businesses, including unincorporated businesses, accounted for the other 54.3%.
GDP shares by business-size class are also calculated for 17 industries. Small and medium-sized businesses accounted for over half of the GDP in most industries. The exceptions were mining and oil and gas, manufacturing, transportation and information, where large-size businesses accounted for the largest share.
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