The Business Rollercoaster: From Grand Openings to Final Farewells
Cleanlist reports that 29,818 new businesses opened in June 2024 in Canada. This number significantly increased from May 2024, resulting in an 82.7% increase in new businesses month over month. Additionally, if we compare the number of new businesses opened this month with the number of new businesses that opened in June 2023, we see a large jump in numbers resulting in a whopping 144.6% increase in new businesses year over year.
We reported 9,591 businesses closing in June 2024, resulting in a significant 117.8% month-over-month increase in closed businesses. If we compare the number of closed businesses in June 2024 to June 2023, we saw a 44.2% increase in closed businesses month over month.
What’s Happening in the Most Populated Provinces?
The most populated provinces in Canada are where we tend to see the most dramatic movement in metrics, given the sheer volume of citizens populating these provinces. When it comes to opening up new businesses, Alberta, British Columbia, Ontario and Quebec often lead the way in new business openings.
Over these past 3 months, we have noticed quite a rollercoaster of new business openings. We reported that both Alberta and Ontario have seen a large decline in new business openings over the last 3 months, whereas British Columbia and Quebec saw a huge uptick.
Why might that be? There are many reasons why these numbers could be so drastically fluctuating. For instance, if we look at economic conditions, Alberta could be influenced by the energy sector, i.e. the price of oil, and in the meantime, Ontario is dealing with high costs of living and doing business in large urban areas. On the other hand, BC may be benefiting from a diverse economy with an up-and-coming tech sector and Quebec could be driven by big investments in technology as well.
Other factors that could contribute to one province’s rise in new businesses over another are government policies, current market conditions, demographic and industry trends, cultural factors, etc.
Why New Business Start-ups Matter to You
New businesses are big spenders in several B2B categories including office supplies, technology (computers, software, etc.), credit cards and financial services, furniture and fixtures, marketing and advertising, office space, insurance (business insurance, liability insurance), legal, accounting, and other professional services, employment recruiting and advertising, employee benefit programs, travel and transportation, raw materials and inventory, equipment, training and staff development, website development services, internet and telecommunication services, office maintenance and cleaning.
Companies that supply these products and services have an opportunity to quickly establish relationships with new start-ups and become their go-to supplier as they expand and grow. Savvy marketers know this and are quick to engage with these businesses.
About The Data
The data presented in this report was summarized by Cleanlist from ResponseCanada™ Business, Canada’s largest and most up-to-date commercial database. To learn more about the database or for licensing information, contact sales@cleanlist.ca.
Cleanlist is Canada’s largest customer data company. We clean, enrich, and validate business and consumer data. We’re also experts in data-driven document composition and Canada’s largest data provider for digital and offline marketing. To learn more, visit us at Cleanlist.ca.
