Business Openings Plummet as Business Closures Spike
Cleanlist reported that 12,821 new businesses opened in November 2024 in Canada. This number is a significant 44% decrease month-over-month from October 2024 to November 2024 and a major 23.2% increase year-over-year from November 2023 to November 2024.
Regarding business closings in November 2024, we reported 10,130 closings, which was a massive 56.3% increase month-over-month from October 2024 to November 2024 and a minor 6.7% increase year-over-year from November 2023 to November 2024.
What influenced the major decrease in new businesses and increase in closed businesses?
Many factors could contribute to an increase in the number of business closures and a decrease in business openings. The primary reason for the decrease in the number of active businesses is likely due to the typical slowdown of entrepreneurial activity later in the year. Many business owners or aspiring entrepreneurs prefer to wait for the new year when economic conditions and consumer spending even out post-holidays. Another factor contributing to this decline could be market conditions, rising operational costs, and inflationary pressures on themselves and their consumers. Not to mention, traditional business models have been further disrupted by the over-reliance on e-commerce in recent years.
The number of closed businesses in November 2024 was not as major as it could have been. Previous months in 2024 saw much greater closure numbers; however, it was a big jump month-over-month. This jump in closures could be attributed to the continued rise in the cost of goods and services, leaving many small businesses struggling to maintain profitability.
Additionally, while the decrease in new business openings in November may suggest a cautious market, the rise in closures may also reflect the challenges existing businesses face in adapting to the ongoing economic shifts.
Why New Business Openings Matter to You
New businesses are big spenders in several B2B categories. These potential customers 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.
Generating leads from new business lead data enables companies that supply these products and services an opportunity at an early stage to quickly establish relationships with decision-makers and become their go-to supplier as they expand and grow. Savvy marketers know the benefits of such targeted leads and quickly to connect with these businesses.
Let Cleanlist’s New Business Lead Data Help Your Sales Team Succeed
Data accuracy is critical when creating lead lists of new business contact information because you want to make a great first impression. Trust Cleanlist’s data solutions to build your B2B sales lead database of accurate contact names, emails and phone numbers.
