Significant Month-to-Month Drop in New Business Launches 🚀📉
Cleanlist reports that 10,660 new businesses opened in July 2024 in Canada. This number decreased significantly from June 2024, resulting in a 64.3% decrease in new businesses month over month. Also, if we look at the number of new businesses opened this past July and compare it to last July (2023), we notice only a slight 16.3% decrease in business openings.
Additionally, we reported 11,336 businesses closing in July 2024, resulting in a minor 18.2% month-over-month decrease in closed businesses. If we compare the number of closed businesses in July 2024 to July 2023, we saw a major 89.2% decrease in closed businesses month over month. A win for business owners 🎉
What caused the sharp decline in new business openings from June to July 2024?
The sharp decline in new business launches month over month definitely raises important questions. What happened and why the sudden shift? One could speculate that there are several factors that could be contributing to this trend. For instance, rising inflation, fluctuating interest rates and global economic instability could make business owners more cautious to take the leap. It’s also important to note that the middle of the summer typically sees fewer business openings due to the fact that many people are on vacation and may not be eager to shop. Additionally, it could be that particular industries are oversaturated, leading to fewer entrants or that there’s been a shift in consumer behaviour for particular products or services.
As you can see, there are many potential factors in play. While the decrease in closures is encouraging, the drop in new businesses could signal challenges ahead if the trend continues.
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.
