Study: Firm dynamics: Firm entry and exit across Canada, 2000 to 2009
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Released: 2013-12-10
The study "Firm Dynamics: Firm Entry and Exit in the Canadian Provinces, 2000 to 2009" provides an overview of entry and exit patterns across Canada, examines similarities and differences, and links these to differences in industrial structure and economic development.
The entry rate based on the number of firms varies considerably across Canada. The average entry rate between 2000 and 2009 ranged from a high of 12.5% in Alberta to a low of 9.2% in Quebec. The variations in the exit rate were much smaller, ranging from 9.6% in British Columbia to 8.5% in Quebec during the study period.
Chart 1
Average annual entry and exit rates across regions
Net entry (the difference between entry and exit) makes positive contributions to the business population growth. Alberta had the largest net entry rate over the period from 2000 to 2009, with 3.1% per year on average, while the Atlantic provinces had the smallest. Net entry contributes significantly more to employment growth than it does to growth in the number of firms. Generally, almost one out of every five jobs created (or lost) between 2000 and 2009 was due to the firm entry and exit process.
Cross-industry variations in firm entry and exit rates are similar across the country. Entry and exit rates based on the number of firms were generally higher in industries that experienced restructuring over the study period, such as mining, oil and gas, construction, transportation, and finance industries.
Note to readers
Newfoundland and Labrador, New Brunswick, Prince Edward Island, and Nova Scotia were grouped together in this study for confidentiality requirements.
The study "Firm Dynamics: Firm Entry and Exit in the Canadian Provinces, 2000 to 2009," part of the Canadian Economy in Transition series (Catalogue number11-622-M), is now available from the Browse by key resource module of our website under Publications.
Similar studies from the Economic Analysis Division are available online (www.statcan.gc.ca/economicanalysis).
Contact information
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To enquire about the concepts, methods or data quality of this release, contact John Baldwin (613-951-8588; john.baldwin@statcan.gc.ca), Economic Analysis Division.
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