The week, launched more than 40-years ago, celebrates the important contributions of small businesses to Saskatchewan's economy.
Small businesses are classified as having less than 50 employees. They are a source of quality jobs and account for 99 per cent of the almost 150,000 business enterprises in the province.
“Small businesses are the backbone of a community,” said Juanita Polegi, Executive Director of the Yorkton Chamber of Commerce. “When small businesses thrive, the community thrives. That’s why it’s so important for citizens to support small business in their communities.”
Polegi said small business is typically operated by those in the community.
“Small business owners most often reside in the communities in which their businesses are located,” she told Yorkton This Week. “They tend to spend their money locally.
“In fact, in a recent study commissioned by the Yorkton Chamber of Commerce, it stated that another study showed that over 50 per cent of revenue from local retailers is recirculated within the local economy.”
In making the provincial announcement Trade and Export Development Minister Jeremy Harrison noted the history of entrepreneurs in Saskatchewan.
"Saskatchewan has a strong history of entrepreneurial spirit and small businesses continue to play a vital role in the province," he said in a release. "Small businesses are active in virtually every sector of the economy, providing vital jobs, products and services, which often turn into the kind of success that grows an economy, and a province. The Government of Saskatchewan is proud to recognize this week to celebrate the contribution small businesses make to the growth of our province's economy."
Small businesses provide significant benefits to Saskatchewan's economy. In 2020, small businesses employed 30 per cent of Saskatchewan's workers and paid out almost $6.8 billion in wages and salaries, which was 25 per cent of the province's total payroll. Small businesses generated 29 per cent of Saskatchewan's gross domestic product (GDP).
The number of small businesses has grown from 95,066 in 2010 to 146,016 in 2020, a 54 per cent increase. In 2020, there were 124 small businesses for every 1,000 people in Saskatchewan, which is second highest per capita in Canada.
The Government of Saskatchewan continues to invest in initiatives, services and programs that support small businesses in the province. Some of these include:
* The Saskatchewan Technology Start-Up Incentive, which offers a 45 per cent non-refundable tax credit for individual and corporate equity investments in eligible technology start-up businesses;
* The Product2Market: Value Added incentive which helps support small- and medium-sized agri-businesses, from product development through to marketing activities;
* The Canada-Saskatchewan Job Grant, an employer-driven program which helps employers train new or existing workers to meet their specific workforce needs;
* Small Business Corporate Tax Rate of 0 per cent until July 2022 and 1 per cent until July 2023 when it will revert back to 2 per cent. The reduced rate applies to up to $600,000 taxable income per year in Saskatchewan and will be pro-rated for taxation years that include periods with different tax rates.
* Tax credits for labour-sponsored Venture Capital Corporation Funds that raise up to $70 million annually from Saskatchewan residents and invest the capital in small- and medium-sized Saskatchewan businesses.
* A highly competitive tax structure, which includes tax credits for research and development, as well as for manufacturing and processing equipment expenditures; and
* The proclamation of the Regulatory Modernization and Accountability Act in 2013, to ultimately remove red tape that could be a road block to business, and to remove some of the barriers to growth.
