OTTAWA – The Business Development Bank of Canada (BDC) and Equifax Canada have partnered to launch the Canadian Small Business Health index. By combining actual business data and industry sentiment, they offer a perspective on the financial health of Canada’s small and medium-sized enterprises (SMEs).
Drawing on secure, anonymized data from Equifax, the index is designed to equip entrepreneurs, policymakers, and financial institutions with valuable insights into the Canadian business landscape. As the first tool of its kind, the Canadian Small Business Health Index aims to answer critical questions: What is the current health of Canadian small businesses? How might that change over the coming year? And for entrepreneurs—what is the next strategic move?
“SMEs are crucial to Canada’s economy, responsible for 88% of private sector jobs and generating over 50% of the country’s GDP. They drive innovation, job creation, and economic growth”, says Isabelle Hudon, President, and CEO, BDC. “With the index, BDC and Equifax are providing entrepreneurs with the ability to anticipate, and, more importantly, act, with confidence. As Canada’s development bank, we are proud to help bring yet another resource to empower support small businesses to defy the odds and make better decision about growth and opportunities.”
Some highlights include:
A Unique Data Blend: By integrating direct data sources with business sentiment, the index provides a well-rounded snapshot of SME health. It includes metrics on credit performance, growth potential, sentiment, and economic context.
Regional Insights: Recognizing the diverse dynamics across Canada, the index sheds light on how regional factors impact business performance.
Quarterly, Forward-Looking Analysis: The index provides insights into growth, cash flow, financing needs, debt management, revenue projections, planned investments, workforce trends, and consumer behavior.
The Canadian Small Business Health Index combines expertise and real-world input from, Equifax for the Credit Performance component and BDC for the Business Confidence component, and both organizations equally contribute to Growth Projections.
Business Examiner Staff
