New Business and Closed Business Figures Plummet in May
Cleanlist reports that 16,323 new businesses opened in May 2024 in Canada. This number drastically dropped from April 2024, resulting in a 64.1% decrease in new businesses month over month. However, the number of new businesses opened in May 2024 is similar to May 2023 with only a slight increase of 4.6%.
In terms of businesses closed, we also saw a significant decline resulting in only 4403 businesses closed in May 2024, 85.7% less than April 2024. When comparing this to the number of businesses we reported closing in May 2023, we also saw a notable decrease of 66.3%
Why are business owners being cautious this May?
We suspect Canada’s strong labour market is making potential entrepreneurs second guess their business ventures. Additionally, venture capital deals have also declined, as investors are becoming more cautious in their investments, impacting a lot of aspiring entrepreneurs.
According to a recent article by The Future Economy, “Globally, Q3 of 2023 saw the number of global funding deals decrease for the sixth consecutive quarter (-11% to Q2), while the dollars invested actually increased, meaning there were fewer but larger deals. In Canada, the number of deals decreased by 28% with the dollars decreased by a staggering 55%.” When you pair a strong labour market with declined VC activity, the large decline in the number of new businesses and the number of closed businesses in May 2024 starts to make a lot more sense.
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.
How to Get Started
Cleanlist compiles and organizes new business formation data daily for every province in Canada. The data includes business name and address, the industry code (both NAICS and SIC), website URL, telephone number, email address, number of employees and annual revenue. Clients can subscribe to the data and receive a feed of new business startups every month. The data feed can cover all businesses in Canada or be filtered to meet specific target market criteria. Cleanlist would be happy to provide you with estimated new business counts and a data licensing proposal.
About the Data
The data presented in this report was summarized from ResponseCanada™ Business, Canada’s largest and most up-to-date commercial database. Cleanlist licenses the database to clients who require company-specific data for marketing and research purposes.
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 digital and offline marketing data provider. To learn more, visit us at Cleanlist.ca.
