Sources: Statistics Canada, Financial And Taxation Statistics For Enterprises

In assessing sector growth, it is important to recognize that not all growth is equal. An upward growth trend that fluctuates erratically due to business churn (i.e., opening and closing of businesses) is not stable growth. Consequently, it is useful to look at growth in relation to growth volatility. Ideally, it is best to see both (1) positive and (2) stable sales growth year-over-year. Lower but more stable growth is also acceptable as it can result in stable employment. Figure 11 compares average sector revenue growth rates with revenue growth CV.

Generally speaking, SMEs in the mining, quarrying, and oil and gas extraction sector and the transportation and warehousing sector grew on less stable but higher growth trajectories over the

Because, this value maximization trend is the indicative of economic growth. There is no denying the fact that these indicators are really useful, but yet the policy analysts give a superficial look at their indicators as compared to GDP statistics. As a result, corporate profitability and a portion of GDP flowing to business owners gain attention. Mentioned that the portion of GDP that flows to business owners is calculated by deducting the share of income of the labors.

5.2.5.1 Net Profits on the Basis of Business Size

Statistics Canada estimates show that businesses earned about $1.25 trillion in net profits over the 1999–2012 evaluation period, or on average $89 billion per year. This is total profits after subtracting production and operating costs, depreciation/depletion charges, interest expenses, taxes and any other costs. In 2012 there were about 936 thousand businesses in the Financial and Taxation Statistics for Enterprises database, with net profits per business of about $131,000 growing from $74,000 per business in

Note 1: Annual growth rates in excess of 100 percent were considered outliers and were reduced to 100 percent to avoid skewing the averages.

Note 2: Profit growth is the percentage change from one year to the next. Profit growth is not provided if either the latest period or the year-ago period contains a net loss. If a company posts a profit in the latest period against a loss in the year-ago period, the percent change is represented as a “P.” Similarly, if a company posts a loss in the latest period against a profit in the year-ago period, the percent change is represented as an “L.” Note 3: “—” indicates that the data is not meaningful as the sector posted losses in all periods.”

The manufacturing sector was hit hardest during the 2009 recession, and agriculture, construction, transportation, and accommodation had significant declines in profitability. Wholesale and retail trade; professional, scientific and technical services; and other services experienced modest declines in profitability. Following the recession, all industries recovered. Between 2010 and 2012 most sectors’ net profits grew on average between 16 and 51 percent a