Cover Story

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By Jason Aebig, CEO Saskatoon Chamber of Commerce

All right. We’re biased. At the heart of every Chamber – and every community – are hundreds of small and medium size businesses that make the place tick. When they open their doors and turn on the lights every morning, cities and towns come alive. You can almost hear the economy’s gears starting to turn when they kickstart the day. The grease on those gears is the hard work and dedication of business owners who care as much about their customers, employees and neighbours as they care about themselves.

Whatever their product or service – or whether they operate on main street or online – there are big reasons to love small business. If you’re one of them, here’s to you. Your small business makes us all stronger and better.

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While many of us appreciate and understand these facts, it’s good that we have “Small Business Month” every October to highlight the critical role small businesses play in our city. Some impacts are obvious; others are less known. In all cases, the impact is huge. All out of proportion to their size, and the ripple effects of their business decisions and activities are felt across the economy.

#10 Good Jobs

Small businesses are job creators. With those new jobs comes wages and spending power, which translates into dollars circulating in our economy and new customers for other sectors. How big is the impact? Small businesses pay out over 6.8 billion (that’s with a B) in wages and salaries, with one-third of all workers employed by a small business. That’s thousands of people with money in their pockets – shopping, spending and investing right here at home – thanks to their small business employer.

#9 GDP

Small businesses produce, sell, and export stuff. Lots of stuff. The small business sector alone represents 29% of Saskatchewan’s gross domestic product with Saskatoon home to a quarter of our province’s small and medium size enterprises (the highest of any city or region in Saskatchewan). Out of the SMEs that export goods, a majority make Saskatoon their home.

#8 Community Safety and Vibrancy

Small businesses are big contributors to the safety and vibrancy of our downtowns and neighbourhoods. Their everyday activity attracts a steady flow of customers, suppliers and deliveries, adding more “eyes and ears” on our streets and helping people feel safer and more secure. Their well-lit establishments, as well as their security cameras and personnel, also contribute to street safety. While their presence doesn’t eliminate criminal activity entirely, we’ve all seen what happens to districts or neighbourhoods when their small businesses go dark. Small retailers, restaurants and street level office buildings make all the difference.

#7 Labour Force Development

Small businesses offer a ramp into the job market. For young people, recent graduates and new Canadians, getting that first job in a small business can help them gain knowledge and experience they might not be able to get at a larger organization or company. The soft skills they gain as members of a team or working with the public, in addition to the hard skills they learn on the job like scheduling, managing money or supervising people, are building blocks they can leverage to pursue job opportunities or career paths down the road.

#6 More Entrepreneurs

Small businesses offer multiple paths to business ownership. The most obvious one is starting a small business from scratch based on a sound business plan and good understanding of the market. But the sector offers many other routes to the big chair, including franchising, working in a business and transitioning to ownership, or acquiring a viable business through an outright purchase. What’s more: it offers people opportunities for leadership and management among those who have been traditionally under-represented in business circles, including women and BIPOC skilled professionals. A thriving, diverse business community starts with small businesses that make it possible.

#5 Can Do Spirit

Small businesses contribute to a community’s enterprising spirit. The more small and medium size businesses operating in any given city, the more often you hear people refer to that community as having an “enterprising” “business friendly” or “can do” attitude. Even better? It feeds itself, inspiring new ventures and other entrepreneurs to enter the market, start something new, or scale what’s already there. Saskatoon is widely seen as an “entrepreneurial city” thanks to a community that has always valued the role of small businesses in our economy, and generations of small business owners who have always supported, mentored and encouraged each other.

#4 Competitiveness

Small businesses keep our economy on the leading edge. They are creative, nimble, curious and eager. They see market opportunities others ignore or leave behind. They tap the latest trends and technologies to carve a path forward. Look no further than Saskatoon’s growing tech sector and the dozens of start-ups and small businesses creating jobs, attracting investment, and growing roots in our city. There are just over 8,000 tech professionals currently employed, across 65-75 businesses, including emerging giants like Solido, Vendasta and 7Shifts. In addition to the IP, new products, and jobs they’re creating, they’re attracting talented, young people to our city. In the economy of the future, Saskatoon is well-positioned to compete and win thanks to small business entrepreneurs ready to take risks and jump on opportunities.

#3 Community Support

Look no further than rink boards, event programs and donor lists across our city to appreciate how much small and medium sized businesses contribute to local causes, charities and non-profit organizations in our community. Your team needs jerseys? Food bank running low? Shelters need supplies? Kids going hungry? Small businesses and their employees step up every time. They volunteer and raise money during work hours – which are often unrecorded costs to the business – to respond to community appeals and help their neighbours in need. The total amount of time and dollars small businesses contribute to our quality of life in Saskatoon is incalculable and staggering. Without them, much would be left undone.

#2 Hyper Local

The economic impact of a small business is hyper-local, direct and immediate. A high percentage of its workforce will be local. Many of its suppliers will be local. Its revenue will pay for local utilities and services, and contribute local property and provincial income taxes, with its employees and owners doing the same. Its profit will also pay the wages of employees who become customers of other businesses operating in the community. It’s a virtuous circle of economic activity where a good portion of the money generated here, stays here, and has an immediate, positive effect on our city.

#1 Service

Small businesses aim to serve. It’s heard in the greeting you get when you walk through the door or seen in their efforts to exceed your expectations. They often open early and stay late to get us what we need. At the height of the pandemic, they doubled their efforts to remain open, keep their employees and customers safe, and provide goods and services to support us and our families. They went to work when many of us were too afraid or unsure to leave home. Our economy stayed open because they stayed open – and that kind of commitment is something worth celebrating.

This month, take a minute to reflect on our small businesses and their impact on our lives and livelihoods. And to all our local job creators, risk takers, innovators and entrepreneurs: thank you. We’re stronger and better because you’re here.