Significant Business Transformations in September 2024
Cleanlist reports 34,698 new businesses opened in September 2024 in Canada. This number of recently launched businesses is the highest new business count since April of 2024. This number increased significantly from August 2024, resulting in a 146% increase in new businesses month-over-month. Additionally, the number of new businesses opened this past September compared to last September (2023) increased by a notable 40.5%.
When it comes to closed businesses in September 2024, we reported 23,388 closings, a big 34.9% increase month-over-month and the highest count we have seen since April 2024. Also, when we looked at the number of closed businesses in September 2024, compared to September 2023, we noticed an astonishing 561.6% increase in closed businesses.
What factors contributed to the increase in both business launches and closures?
The 146% month-over-month rise in new businesses suggests that entrepreneurs and small businesses are taking advantage of market opportunities or recovering from possible economic challenges faced earlier in the year. The 40.5% increase year-over-year suggests that more individuals are willing to venture into the market than last year.
On the other hand, the 561.6% year-over-year spoke in business closures and 34.9% month-over-month increase could point to challenges in sustaining these business ventures. Closures could be due to rising operational costs, supply chain disruptions or more or tougher competition. While new businesses are opening at a good pace, sustaining them is looking to be the real challenge for business owners.
Why New Business Start-ups Matter to You
New businesses are big spenders in several B2B categories. They need products including office supplies, technology (computers, software, etc.), credit cards and financial services such as payment processing, furniture and fixtures, marketing and advertising, office real estate, delivery services, 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, online marketplaces, internet and telecommunication services, office maintenance and cleaning.
Companies that supply these products and services have an opportunity at an early stage 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 using a list of recently launched businesses.
