Skip to main content

SFSME

Survey of Financing of Small and Medium Enterprises

Description

  • Nature: Cross-sectional survey of small- and medium-sized businesses that can be linked to other administrative files.
  • Usage: The database can be used to study small- and medium-sized businesses.
  • Content: The objective of the survey is to collect general characteristics on small- and medium-sized businesses and on their financing activities. The database contains information on the types of debt, lease and equity financing that small and medium enterprises rely on. Furthermore, it collects information on any recent attempts to obtain new financing. It also collects additional information about circumstances that affect the way these businesses operate.
  • Coverage period: 2000, 2001, 2004 and 2007.

Funded Projects

The post-Great Recession (2007-2009) economy has exhibited a slow rate of recovery. This is especially evident when examining unemployment. One suggested underlying cause of this trend is the significant decline in new firms, or new entrants, during 2008-2009. In Canada, while there has been a slow decrease in unemployment, the employment rate has remained steady. Thus, it appears the ability to create jobs has not yet recovered since the Great Recession. This raises the question of what factors determine a firm’s status as a job creator. The firm entry rate in Canada is decreasing, while the job creation rate of firms who do enter the market is 1.5 to 2.5%. This is greater than the aggregate annual job growth in Canada. This trend shows firms that have an established position in the market are not net job creators, and new firms may be job creators. With these facts in mind, this study hopes to answer the following questions: (1) what factors affect the initial performance of new firms and (2) what determines the fact that some firms are high growth (job creators), while others rapidly shrink. The study will also focus on how constraints after a financial shock (i.e. the Great Recession) affect the entry decision of new firms.

Related Data Sets
NALMF, SFSME

Related Research Themes
Industry and Firm Analysis, Labour Markets

Asymmetric information, when one party in a transaction possesses more information than the other, is common in creditor-borrower relations. When proper and complete information is not available, creditors may not be able to assess the ability of a firm to repay debt. Thus, this problem of asymmetric information may cause creditors to ration loans, or not price debt efficiently (i.e. the price that truly reflects the position of the firm). This may limit access of funds to productive firms, especially Small and Medium Enterprises (SMEs), that are known to employ the majority of an economy’s workforce. Some mechanisms exist that may mitigate the problems associated with information asymmetry. For example, bank-firm relationships may complement available financial information. Through long-term relationships, banks may obtain “soft information” such as the quality of management, revenue volatility, customer loyalty, etc. The purpose of this paper is to determine if such bank-firm relationships improve debt pricing of SMEs and other frictions associated with asymmetric information.

Related Data Sets
NALMF, SFSME

Related Research Themes
Industry and Firm Analysis

Papers and Publications

June, 2017

March, 2017

Related Data Sets
ASM, ASM-I, CBSA Customs, CEEDD, CIP, CFA, LEAP, LWF, NALMF, SFSME, SIBS, T2-LEAP, TEC, WES

Related Research Themes
Incomes, Industry and Firm Analysis, International, Labour Markets

Presented at Data Day

Author(s)

Natalie Goodwin, Statistics Canada RDC Analyst, Western University RDC

Related Data Sets
ASM, ASM-I, CBSA Customs, CEEDD, CFA, CIP, LEAP, LWF, NALMF, SFSME, SIBS, T2-LEAP, TEC, WES

Related Research Themes
Incomes, Industry and Firm Analysis, International, Labour Markets

Keywords: RDC

Presented at Data Day

Outline

Accessing business microdata for research purposes at the Canadian Centre for Data Development and Economic Research (CDER) at Statistics Canada

  • CDER basics
  • Data sets available for access to CDER
  • Application process
  • Future directions
  • Other information

Related Data Sets
ASM, ASM-I, CBSA Customs, CEEDD, CFA, CIP, LEAP, LWF, NALMF, SFSME, SIBS, T2-LEAP, TEC, WES

Related Research Themes
Incomes, Industry and Firm Analysis, International, Labour Markets

Keywords: CDER; microdata; data access

Presented at Data Day

May, 2015

Author(s)

Kim P. Huynh works at the Bank of Canada

Related Data Sets
ASM, ASM-I, CBSA Customs, CEEDD, CFA, CIP, LEAP, LWF, NALMF, SFSME, SIBS, T2-LEAP, TEC, WES

Related Research Themes
Incomes, Industry and Firm Analysis, International, Labour Markets

Keywords: CDER; proposal; microdata

JEL Codes: Y9

November, 2012