Entry, exit, mergers and growth

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All (116) (60 to 70 of 116 results)

  • Articles and reports: 11-622-M2012025
    Geography: Canada
    Description:

    This paper examines whether Canadian firms of different sizes (in terms of employment) grow at different rates year-on-year. The data are from Statistics Canada's Longitudinal Employment Analysis Program and cover the 1999-to-2008 period. The methodology is similar to that used by Haltiwanger, Jarmin and Miranda (2010) for the United States: controls are used for firm age, and possible bias from short-term regression to the mean is removed by sizing firms according to their average number of employees in both previous and current years.

    Release date: 2012-07-05

  • Articles and reports: 11-626-X2012011
    Geography: Canada
    Description:

    This article in the Economic Insights series looks at the relationship between firm size and employment growth rates. It is based on the working paper Firm Dynamics: Employment Growth Rates of Small Versus Large Firms in Canada, which is the result of a joint research effort by Statistics Canada and Industry Canada.

    Release date: 2012-07-05

  • Stats in brief: 11-001-X20121795601
    Description: Release published in The Daily – Statistics Canada’s official release bulletin
    Release date: 2012-06-27

  • Articles and reports: 11-622-M2012024
    Geography: Canada
    Description:

    This paper looks at annual changes in Canadian business sector employment from 2001 to 2009. This period encompasses an expansionary phase (2001 to 2008), followed by a recession (2008/2009). Firm-level data are used to decompose yearly net employment change into gross employment creation and destruction, which makes it possible to measure the size of total annual employment reallocation. These measures of employment turnover are compared across industries and firm size classes.

    Release date: 2012-06-27

  • Articles and reports: 11-626-X2012009
    Geography: Canada
    Description:

    This article in the Economic Insights series decomposes business-sector annual net employment growth into gross employment creation and gross employment destruction at the firm level. It is based on research carried out by Statistics Canada on the topic of business dynamics.

    Release date: 2012-06-27

  • Articles and reports: 11-622-M2012022
    Geography: Canada
    Description:

    This paper examines firm entry and exit patterns in the Canadian business sector by using the Longitudinal Employment Analysis Program database developed by Statistics Canada. Our primary purpose is to present stylized facts and provide descriptive analysis of the entry and exit patterns in the Canadian economy in order to form a solid foundation for future in-depth theoretical and empirical studies of firm dynamics. In particular, this paper focuses on the relative importance of entrants and exiters in terms of both number and employment, the persistence of entry and exit patterns over time, and the correlation between industry entry and exit rates.

    Release date: 2012-01-25

  • Articles and reports: 11-626-X2012004
    Geography: Canada
    Description:

    This Economic Insights article discusses firm entry and exit patterns in the Canadian business sector and its constituent industries. The analysis is based on Statistics Canada Longitudinal Employment Analysis program datasets. The article focuses on the relative importance of entrants and exiters, calculated in terms of number of firms and employment, the persistence of entry and exit patterns over time, and the correlation between industry entry and exit rates.

    Release date: 2012-01-25

  • Articles and reports: 11F0027M2011072
    Geography: Canada
    Description:

    The nature of the competitive process that causes a reallocation of market shares within an industry contributes to aggregate productivity growth. This paper extends our understanding of industry differences in the competitive process by examining firm turnover and productivity growth in various services industries in Canada and situating them relative to retailing and manufacturing, two industries which have been the focus of these studies in the past. Seven industries in the services sector, namely wholesale trade, transportation and warehousing, air transportation, truck transportation, broadcasting and telecommunications, business services and financial services, are examined.

    Release date: 2011-08-19

  • Articles and reports: 11F0027M2010061
    Geography: Canada
    Description:

    We examine the simultaneous effects of real-exchange-rate movements and of tariff reductions on plant death in Canadian manufacturing industries between 1979 and 1996. We find that both currency appreciation and tariff cuts increase the probability of plant death, but that tariff reductions have a much greater effect. Consistent with the implications of recent international-trade models involving heterogeneous firms, we further find that the effect of exchange-rate movements and tariff cuts on exit are heterogeneous across plants - particularly pronounced among least efficient plants. Our results reveal multi-dimensional heterogeneity that current models featuring one-dimensional heterogeneity (efficiency differences among plants) cannot fully explain. There are significant and substantial differences between exporters and non-exporters, and between domestic- and foreign- controlled plants. Exporters and foreign-owned plants have much lower failure rates; however, their survival is more sensitive to changes in tariffs and real exchange rates, whether differences in their efficiency levels are controlled or not.

    Release date: 2010-04-14

  • Articles and reports: 11F0027M2009056
    Geography: Canada
    Description:

    This paper examines the characteristics of plants in the manufacturing sector undergoing changes in ownership to further our understanding of the underlying causes of mergers and acquisitions. Previous Canadian studies (Baldwin 1995; Baldwin and Caves 1991) compare the performance of merged plants at the beginning and the end of the 1970s. This paper examines annual changes that occurred over the 1970s, 1980s, and 1990s to provide a longer-run perspective. In doing so, it outlines the amount of change taking place (both the number of plants affected and the share of employment) and the characteristics of plants that led to their takeover. Differences between foreign and domestic takeovers are also examined.

    Release date: 2009-06-04
Data (36)

Data (36) (10 to 20 of 36 results)

  • Table: 33-10-0557-01
    Geography: Canada, Province or territory
    Frequency: Occasional
    Description:

    Reasons business or organization is not expecting any growth over the next three years, by North American Industry Classification System (NAICS), business employment size, type of business, business activity and majority ownership, third quarter of 2022.

    Release date: 2022-08-30

  • Table: 33-10-0514-01
    Geography: Canada, Province or territory
    Frequency: Occasional
    Description:

    Plans for the business to transfer, sell, or close in the next 12 months, by North American Industry Classification System (NAICS), business employment size, type of business, business activity and majority ownership, second quarter of 2022.

    Release date: 2022-05-30

  • Table: 33-10-0461-01
    Geography: Canada
    Frequency: Every 3 years
    Description:

    Intention for sale, transfer or business close in the next five years for small and medium enterprises by region, CMA level, North American Industry Classification System (NAICS), demographics, age of business, employment size, rate of growth, etc.

    Release date: 2022-03-02

  • Table: 33-10-0476-01
    Geography: Canada, Province or territory
    Frequency: Occasional
    Description:

    Plans for the business or organization to expand or restructure, or to acquire or invest in other businesses or organizations in the next 12 months, by North American Industry Classification System (NAICS), business employment size, type of business, business activity and majority ownership, first quarter of 2022.

    Release date: 2022-02-25

  • Table: 33-10-0477-01
    Geography: Canada, Province or territory
    Frequency: Occasional
    Description:

    Plans for the business to transfer, sell, or close in the next 12 months, by North American Industry Classification System (NAICS), business employment size, type of business, business activity and majority ownership, first quarter of 2022.

    Release date: 2022-02-25

  • Table: 33-10-0402-01
    Geography: Canada, Province or territory
    Frequency: Occasional
    Description:

    Plans for the business or organization to expand or restructure, or to acquire or invest in other businesses or organizations in the next 12 months, by North American Industry Classification System (NAICS), business employment size, type of business, business activity and majority ownership, fourth quarter of 2021.

    Release date: 2021-11-26

  • Table: 33-10-0403-01
    Geography: Canada, Province or territory
    Frequency: Occasional
    Description:

    Plans for the business to transfer, sell, or close in the next 12 months, by North American Industry Classification System (NAICS), business employment size, type of business, business activity and majority ownership, fourth quarter of 2021.

    Release date: 2021-11-26

  • Table: 33-10-0365-01
    Geography: Canada, Province or territory
    Frequency: Occasional
    Description:

    Plans for the business to expand or restructure, or to acquire or invest in other businesses in the next 12 months, by North American Industry Classification System (NAICS), business employment size, type of business, business activity and majority ownership, third quarter of 2021.

    Release date: 2021-08-27

  • Table: 33-10-0366-01
    Geography: Canada, Province or territory
    Frequency: Occasional
    Description:

    Plans for the business to transfer, sell, or close in the next 12 months, by North American Industry Classification System (NAICS), business employment size, type of business, business activity and majority ownership, third quarter of 2021.

    Release date: 2021-08-27

  • Table: 33-10-0176-01
    Geography: Canada, Geographical region of Canada, Province or territory
    Frequency: Occasional
    Description:

    Percentage of enterprises for which specific events occurred in the main geographical market, by North American Industry Classification System (NAICS) code and enterprise size, based on a one-year observation period. Specific events include entry of new competitor(s), exit of competitor(s), increase in competitive behaviour from existing competitors, and decrease in competitive behaviour from existing competitors.

    Release date: 2021-06-09
Analysis (78)

Analysis (78) (60 to 70 of 78 results)

  • Articles and reports: 88-003-X20020016149
    Geography: Canada
    Description:

    According to the report Profile of Spin-off Firms in the Biotechnology Sector, three out of every 10 companies in Canada's rapidly expanding biotechnology sector in 1999 were spin-offs. These firms, which range from corporate spin-offs to biotechnology companies created by universities and research hospitals, accounted for more than one-quarter of total revenues in 1999.

    Release date: 2002-02-15

  • Articles and reports: 63-016-X20010025947
    Geography: Canada
    Description:

    This article examines evidence of consolidation in the Canadian P&C insurance industry since 1988.

    Release date: 2001-10-16

  • Articles and reports: 11F0019M2000123
    Geography: Canada
    Description:

    Recent studies have demonstrated the quantitative importance of entry, exit, growth and decline in the industrial population. It is this turnover that rewards innovative activity and contributes to productivity growth.

    While the size of the entry population is impressive - especially when cumulated over time - the importance of entry is ultimately due to its impact on innovation in the economy. Experimentation is important in a dynamic, market-based economy. A key part of the experimentation comes from entrants. New entrepreneurs constantly offer consumers new products both in terms of the basic good and the level of service that accompanies it.

    This experimentation is associated with significant costs since many entrants fail. Young firms are most at risk of failure; data drawn from a longitudinal file of Canadian entrants in both the goods and service sectors show that over half the new firms that fail do so in the first two years of life. Life is short for the majority of entrants. Only 1 in 5 new firms survive to their tenth birthday.

    Since so many entrants fall by the wayside, it is of inherent interest to understand the conditions that are associated with success, the conditions that allow the potential in new entrepreneurs to come to fruition. The success of an entrant is due to its choosing the correct combination of strategies and activities. To understand how these capabilities contribute to growth, it is necessary to study how the performance of entrants relates to differences in strategies and pursued activities.

    This paper describes the environment and the characteristics of entrants that manage to survive and grow. In doing so, it focuses on two issues. The first is the innovativeness of entrants and the extent to which their growth depends on their innovativeness. The second is to outline how the stress on worker skills, which is partially related to training, complements innovation and contributes to growth.

    Release date: 2000-12-08

  • Articles and reports: 63-016-X19990044946
    Geography: Canada
    Description:

    This article will examine how food service providers and food stores have competed for Canadians' food dollars in the 1990s, and then look at how this intense competition has affected both industries. Each industry has evolved with the objective of improving efficiency and gaining additional market share.

    Release date: 2000-04-14

  • Journals and periodicals: 61-526-X
    Geography: Canada
    Description:

    This study investigates the determinants of failure for new Canadian firms. It explores the role that certain factors play in conditioning the likelihood of survival - factors related to industry structure, firm demographics and macroeconomic cycles. It asks whether the determinants of failure are different for new start-ups than for firms that have reached adolescence, and if the magnitude of these differences is economically significant. It examines whether, after controlling for certain influences, failure rates differ across industries and provinces.

    Two themes figure prominently in this analysis. The first is the impact that certain industry characteristics - such as average firm size and concentration - have on the entry/exit process, either through their influence on failure costs or on the intensity of competition. The second centres on how the dimensions of failure evolve over time as new firms gain market experience.

    Release date: 2000-02-16

  • Articles and reports: 88-003-X19990025344
    Geography: Canada
    Description:

    A Statistics Canada study uses business demographics to learn about innovation and technological change and uncovers interesting patterns. Contrary to expectations, the author uncovered considerable volatility (start-ups and closures) in the service sector. The volatility rate for this sector was 31% compared with 23% for the manufacturing sector. Firms that do not innovate frequently are replaced by new ones that have new or improved products to offer or by those that employ more efficient methods of production and delivery.

    Release date: 2000-01-17

  • Articles and reports: 63-016-X19990024720
    Geography: Canada
    Description:

    This study has two goals. The first is to determine what share of the total chain-store market big-box stores have carved out for themselves in recent years - in terms of numbers and locations, sales and floor space. This information is useful for those concerned with changing market structures, as well as for the general public. Secondly, the "effectiveness" of big-box stores is then compared with that of other stores.

    Release date: 1999-10-13

  • Journals and periodicals: 88-517-X
    Geography: Canada
    Description:

    New firms are seen to play a key role in the innovation process, especially in certain key sectors of the economy. This study therefore examines the differences in the profiles of successful new firms in science-based industries and other industries. The firms that are examined are entrants who survey into their early teen years. The study examines numerous factors that are seen to influence the success of new businesses. These include the competitive environment, business strategies and the financial structure of the businesses.

    Successful new firms in science-based industries are found to differ in a number of dimensions from new firms in other industries. They are more likely to be exporters. They face greater technological change and intense competition with regards to the rate at which new products are being introduced. They tend to put more emphasis on quality, the frequent introduction of new products and the customization of products. They make greater use of information technology. They place more stress on new technology development, research and development facilities and the use of intellectual property. They are much more likely to innovate and they place more importance on recruiting skilled labour and on training. Finally, they are more likely to use non-traditional financial measures to evaluate performance and they are less likely to rely on secured credit for financing both their research and development activity and their machinery and equipment that are firms in other sectors.

    Release date: 1999-03-31

  • Articles and reports: 11F0019M1999121
    Geography: Canada
    Description:

    Entry and exit are important phenomena. This paper reviews the evidence on the size of this process and its contribution to productivity and innovation. It then develops a detailed portrait of the characteristics of new firms that survive and those that fail. In doing so, it examines the type of competencies that are developed in both groups of firms. It asks which competencies are developed by new firms. In particular, it focuses on the innovative capabilities of new firms. It shows that small firms in general and entrants in particular are heterogeneous when it comes to their innovative activity. The types of innovative activity in which they are engaged vary widely. Some focus on research and development (R&D) and new products. Others focus on new technologies. Still others stress the development of human capital. In addition, this paper examines the competitive environment that new firms face and the connection between growth and innovation. It also examines the complementary skills that are employed by innovators. Finally, the paper focuses on the causes of failure in the firm population. It extends earlier work that finds that failing firms differ from surviving firms in terms of basic competencies-management, financial management and marketing capabilities.

    Release date: 1999-02-25

  • Journals and periodicals: 61-525-X
    Geography: Canada
    Description:

    Bankruptcy rates have been increasing in Canada. Almost half of the firms in Canada that go bankrupt do so primarily because of their own deficiencies rather than externally generated problems. They do not develop the basic internal strengths to survive. Overall weakness in management, combined with a lack of market for their product, cause these firms to fail.

    This study suggests that the underlying factor contributing to financial difficulties is management failure rather than external factors associated with imperfect capital markets. Many bankrupt firms face problems in attaining financing in capital markets; but, it is the internal lack of managerial expertise in many of these firms that prevents exploration of different financing options.

    Release date: 1998-04-01
Reference (2)

Reference (2) ((2 results))

  • Surveys and statistical programs – Documentation: 5056
    Description: Science, Innovation and Electronic Information Division is engaged in a joint project with the National Research Council's Industrial Research Assistance Program (IRAP) to investigate the characteristics of growth firms.

  • Surveys and statistical programs – Documentation: 5157
    Description: The objective of the Entrepreneurship Indicators Database is to provide comprehensive business demography statistics and performance indicators for enterprises in Canada.
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