Importance of SMEs

SMEs are an important consideration in government procurement for two reasons:

1. The government relies on smaller suppliers: Smaller businesses are already significant suppliers of goods and services to the Federal Government. SMEs have historically accounted for approximately 43% of the value of government purchases and 66% of government contracts.
2. SMEs are critical to the Canadian economy: The success of SMEs affects the well-being of the Canadian economy and society as engines of job creation, economic growth and innovation. SMEs account for 45% of GDP, much of the economy's growth, 60% of all jobs in the economy, and 75% of net employment growth. SMEs are an integral part of our country's economic fabric and are important to Federal Government procurement — from stationery stores in almost every Canadian town, to the high technology companies centered in many Canadian cities.

SME Definition

SMEs are defined as enterprises with fewer than 500 employees. However, firms range from one-person consulting shops to larger, publicly traded companies. Moreover SMEs are present in almost every industrial sector.

Small firms are defined as producers of goods with fewer than 100 employees or purveyors of services with fewer than 50 employees.