Importance of Small Businesses
Without the dedication and sacrifices of entrepreneurs our economy would look very different. The Canadian economy is heavily dependent on small businesses. From the Key Small Business Statistics – 2020 (https://www.ic.gc.ca/eic/site/061.nsf/eng/h_03126.html) we can see the details of just how important these businesses are to the economy.
Canadian small businesses:
- Employ 68.8% of the total labour force
- Represent 41.9% of the GDP
- Produce 51.1% of goods
- Produce 55.7% of services and
- Represent 97.9% of businesses in Canada
Although these businesses are important to the economy many small business owners feel like they do not have access to the same resources as some of their large competitors. They may not have the support they need to operate their business to a high degree of efficiency and often their skill set does not match the roles they are required to fill as an entrepreneur. The owner is trying to lead operations, finance, HR, marketing, sales, and legal efforts (and much more). This is done all while trying to ensure great leadership of the organization, management of the employees, and maintaining customer satisfaction. It is a tough place to be, and many small businesses struggle simply because they do not have the resources and expertise needed their leaders are unsure of where to get the help they need.
Often support for small businesses comes in the form of getting the owners (and other key employees) the time they need to work on the areas of the business that best match their skills sets and the tasks they enjoy doing the most. Business owners typically spend a lot of their time working in the business, solving problems and working tirelessly to ensure operations continue along as smoothly as they can make possible. Rarely is there time to work on the business, provide vision, and oversight; this represents a huge risk to many small businesses as they operate without the systems and tools needed to ensure their success well into the future.
There are several different options for business owners to find the right expertise and skill needed for their business. Often they are able to rely on external service providers such as their accountants, lawyers, bankers, or others within their network. These can be great resources but often they are only able to provide advice and assistance based on a snapshot in time and may not have the whole picture of what the business and owner need. In addition, often they can not offer continued support and do not work within the business with the same level of accountability. Another option is to hire full time employees to help take on some of the tasks that are taking up a lot of the owner’s time. Finding the right person can be difficult as often the tasks cover a broad range of skills such as marketing, accounts receivable/payable, administration, safety, and human resources. A full-time employee may be skilled in some areas and not others resulting in low efficiency when they are asked to perform tasks outside of their skill set. A third option is to hire fractional employees or contractors for the specific skills to ensure high level of efficiency and ultimately reduce the cost associated with completing these tasks. A fractional service provider can often drive value quickly as they work on tasks that match their skills. There are many different platforms that can be used to find fractional service providers.
Linked Management Solution works with small business owners to help ensure they have the support needed to assist with planning, decision making, and providing reassurance that the business is on the right track to drive opportunities. By bringing decades of experience to a small business as a fractional role, these companies are able to realize the benefits that large companies receive from having the right expertise for the job. Owners are able to focus on the areas of the business that best match their skill set which drives additional value and often allows them to do what they enjoy. Small businesses thrive with the right oversight, dedication and accountability found by utilizing fractional executives. By helping this sector of the Canadian economy, Linked Management Solution is able to ensure the success of the companies we work with and the communities where we work.
