Private Company Market Size

Part
01
of two
Part
01

Canadian Private Company Market Size

In 2017, 1.12 million private companies were active in Canada. The total funding of the top 10K private companies in Canada is valued at $35.9 billion.

RELEVANT INSIGHTS

  • According to Statista, as of 2017, there was an estimated 1.12 million private companies active in Canada.
  • The Canadian economy has a total of 1.18 million companies in 2017. Of these, 1.15 million were small companies, 21,926 were medium-sized companies, and 2,939 were large companies.
  • In 2017, private sector businesses employed approximately 11.9 million individuals in Canada in which 69.7% came from small businesses, 19.9% from medium-sized businesses, and 10.4% from large businesses.
  • According to the GlobalEconomy Database, the number of public companies in Canada is 3330.
  • The federally regulated private sector (FRPS) comprises approximately 910,000 employees in which 785,000 employees are full-time and permanent while the remaining 125,000 employees are seasonal, casual, and term or contract.
  • The total funding of the top 10K private companies in Canada is valued at $35.9 billion.

RESEARCH STRATEGY

Despite a comprehensive search, we were unable to find the total market size of the private company market in Canada.
Initially, we looked for pre-compiled information and examined government databases and market research portals such as Canada.ca, IbisWorld, Bdc.ca, etc. However, we found no information that directly provided the total market size of the private company market in Canada. We only found the number of businesses in Canada categorized based on size and other information.
Next, we searched for data points which can be used for triangulation such as the total funding of the private company in Canada or the total number of private companies in the country. We then began our research by examining trusted databases such as Crunchbase and Statista specific to private companies in Canada. The information we found was not enough for triangulation. Crunchbase information was limited to the total funding of the top 10K private companies in Canada which amounted to $35.9 billion while Statista was only able to provide the total number of companies in the private sector in Canada.
Lastly, we tried a different triangulation approach. Given that we were able to identify the total number of companies in the private sector in Canada, we searched for the average market size of a private company in Canada. We searched trusted resources such as Financial Post, Fraser Institute, etc. but no helpful information was found. Next, we searched for the market size of sub-private sectors such as the goods-producing sector and the service-providing sector. We exhaustively examined CVCA.ca, ic.gc.ca, etc. However, nothing substantial was discovered.
Part
02
of two
Part
02

Canadian Private Company Market Sectors

The number of private companies in Canada's goods-producing sector totals 254,106 and we calculated that the approximate value of this sector amounts to $512,790 million (USD). In contrast, the number of private companies in Canada's services-producing sector totals 923,528 and we calculated that the approximate value of this sector amounts to $1,196.51 billion (USD).

Canadian Private Company Market

A. Goods-Producing Sector

1. Number of Companies

  • There are 254,106 private companies in Canada's goods-producing sector.
  • Collectively, those companies in the goods-producing sector account for 21.6% of Canada's "1,177,634 employer businesses" (i.e. private companies).
  • The vast majority of those companies (248,245 companies) are categorized as small businesses, since they have fewer than 100 employees.
  • Those 248,245 small businesses account for 97.7% of the private companies in Canada's goods-producing sector.
  • Of those small businesses, 56.9% (144,678 companies) have between just one and four employees.

2. Sector Value

  • Two sectors comprise Canada's economy: Services-producing sector and goods-producing sector.
  • A 2018 article published by WorldAtlas stated that the services-producing sector accounted for approximately 70% of Canada's GDP. Thus, Canada's goods-producing sector accounts for the remaining 30% (approximate) of the country's GDP (since 100% — 70% = 30%).
  • Canada's annual GDP in 2018 totaled $1,709.3 billion (USD).
  • By using the aforementioned data points, we were able to triangulate the approximate value of Canada's private goods-producing sector (and private services-producing sector in the following section).
  • To triangulate the value of Canada's goods-producing sector, we multiplied 1,709.3 billion (Canada's 2018 GDP) by 0.3 (representing the approximately 30% of Canada's GDP attributable to the goods-producing sector), which equals 512,790 million.
  • Therefore, according to our data-based calculation, the estimated value of Canada's private goods-producing sector is $512,790 million (USD).

B. Services-Producing Sector

1. Number of Companies

  • There are 923,528 private companies in Canada's services-producing sector.
  • Collectively, those companies in the services-producing sector account for 78.4% of Canada's employer businesses.
  • The vast majority of companies in Canada's services-producing sector (904,524 companies) are categorized as small businesses, since they have fewer than 100 employees.
  • Of those small businesses, 53% (489,385 companies) have between just one and four employees.

2. Sector Value

  • To calculate the value of Canada's private services-producing sector, we multiplied 1,709.3 billion (Canada's 2018 GDP) by 0.7 (representing the approximately 70% of Canada's GDP attributable to the services-producing sector), which equals 1,196.51 billion.
  • Therefore, according to our data-based calculation, the estimated value of Canada's private services-producing sector is $1,196.51 billion (USD).

Research Strategy

The company-count data that we cited, which was published by the Government of Canada, pertains to private companies for several reasons. First, the term "private sector" is used repeatedly throughout the publication we cited. Second, the company-count data provided pertains to "employer businesses" and the term "businesses" denotes for-profit, which means private companies. Third, the publication noted that "[p]rivate sector employees are found in every Canadian economic sector, except public administration." Thus, it's both logical and reasonable to infer/assume from that statement that company-count data would have been noted as "public administration" if the companies referenced were not private companies. For all these reasons, the company-count data we provided in our research findings above pertains specifically to Canada's private company market. The reason we only cited one source for the company-count data is because that data was published by the Government of Canada and no other source would be more legitimate than that. That report was also the most-recent available, as it was published in January 2019. Lastly, we triangulated the values of both sectors because we looked for, but didn't find, specific revenue or GDP dollar amounts for those sectors. However, we were able to triangulate those values and the step-by-step explanations of our calculations are provided above.
Sources
Sources

From Part 01
Quotes
  • "In 2017, private sector businesses employed approximately 11.9 million individuals in Canada. The majority of private sector employees worked for small businesses, specifically 69.7 percent (8.3 million), compared with 19.9 percent (2.4 million) for medium-sized businesses and 10.4 percent (1.2 million) for large businesses. In total, SMEs employed 89.6 percent (10.7 million) of the private sector workforce, highlighting the important role SMEs play in employing Canadians."
Quotes
  • "This statistic shows the total number of active employer firms in the private sector in Canada from 2001 to 2017. As of 2017, about 1.12 million private employer firms were active in Canada."