Written by Nicole Onyszkanycz, Research Officer and Economist (MA Economics)
What Exactly Is a Small Business?
In Canada, any business with fewer than 100 employees is considered small, from your local neighbourhood coffee shop to your local plumber or that family-run bakery down the street. According to ISED, in December 2023, 98.3% of businesses in Alberta were considered small, highlighting just how vital they are to the province’s economy.
Entrepreneurship Is Part of Alberta’s DNA
Alberta has the highest business density in the country, with about 38 businesses for every 1000 adults. Put simply, this means that for every 1000 Albertans aged 18 and over, 38 people own or run a business, more than anywhere else in Canada.
This isn’t just a number, it proves that Alberta is powered by people who build things, take risks, and keep money flowing close to home. More businesses per person means more local jobs, more choices, and a stronger, more resilient economy for everyone.
Small Businesses, Big Impact
Across Canada these businesses play a powerful role in driving economic growth. As of 2023, nearly 5.8 million people were employed by small firms, making up almost half of the entire private-sector workforce. That’s millions of Canadians earning paycheques, gaining experience, and building careers thanks to companies that often start with just a handful of employees and a lot of drive.
Their economic impact doesn’t stop at job creation. From 2016 to 2020, these small businesses generated 35% of the country’s GDP — over a third of all economic activity. That’s a serious contribution, especially considering that many operate with fewer staff and smaller budgets than large corporations.
Simply put, Canada’s economy wouldn’t run without them, and their impact reaches far beyond their size.
Where Does Your Dollar Really Go?
According to new data from the Canadian Federation of Independent Business (CFIB), 66 cents of every dollar spent at a local business stays in the community. In contrast, when you shop at a big-box store like Walmart or Costco, only 11 cents stays in the local economy.
That’s a huge difference, and it comes down to where the money goes. Local businesses are more likely to use local suppliers, hire locally, and reinvest in their communities, while big-box chains often send profits and operations out of the province or even out of the country.
This is why supporting local really matters. Whether you’re grabbing a coffee, getting your bike fixed, or buying a birthday gift, those everyday choices have real impact. They help keep your neighbours employed, support other local businesses, and ensure more of your money stays right here in Alberta.
Why Small Businesses Are Alberta’s Future
Alberta may be known for oil and gas, but as 2020 showed us, global oil prices can collapse overnight — wiping out jobs, shrinking investment, and shaking the economy at its core.
That’s where small businesses come in. They’re Alberta’s built-in backup plan. They create local jobs, keeping dollars in the community, and help the province stay steady when global markets aren’t. When big industries pull back, these businesses can help fill the gaps.
If we want a stronger, more shockproof Alberta, we need to bet on the people building it from the ground up.
The Bottom Line: Support Local
Every dollar you spend is a choice, and that choice has power.
Buying local doesn’t just support a business. It helps someone hire their first employee, stay open through tough times, or take a chance on a new idea. It keeps money circulating in your neighbourhood, building stronger, more self-reliant communities.
In Alberta, entrepreneurship isn’t just a buzzword, it’s who we are. It’s how we build, adapt, and move forward.
So, the next time you spend, spend like it matters — because it does.
Looking to start your own Alberta-owned small business? Business Link is here to help from ideation to answering your burning questions. Book your free consultation today!
Key Small Business Statistics 2023 – Government of Canada (2023)
Key Small Business Statistics 2024 – Government of Canada (2024)
66 Cents of Every Dollar Spent At A Small Business Stays Local – CFIB (2023)
