New solution to help small businesses across Canada
TORONTO, Oct. 29, 2024 /CNW/ – BDC, Canada’s bank for entrepreneurs, and Equifax Canada are proud to launch the Canadian Small Business Health Index, an innovative dataset that combines real-world data and business sentiment to provide a comprehensive view of the financial well-being of small and medium-sized enterprises (SMEs) across Canada.
Using robust, anonymized Equifax data, this innovative index is designed to help entrepreneurs, policymakers, and financial institutions make informed decisions based on a holistic picture of the business landscape. The Canadian Small Business Health Index is the first of its kind, offering a predictive model that answers critical questions such as: What is the state of small business health in Canada? How can we expect it to evolve within the next 12 months? And for entrepreneurs: What’s my next business move?
Key Highlights:
A unique combination of data: The index integrates boots-on-the-ground data with business sentiment, providing a full picture of SME health. It is a composite index that includes credit performance, business growth projections, business sentiment, and the business environment. It is meant to become a reference for anyone involved with the business ecosystem, leveraging anonymized credit bureau data from Equifax, SME survey data from BDC, and macroeconomic data from Statistics Canada and the Bank of Canada.Regional insights: Different regions have different dynamics, and the new index helps explain why some regions perform differently versus others. That’s what makes it so powerful; the insight is an invaluable dataset for decision-makers across Canada.A quarterly overview with forward looking components: the index offers perspective on growth potential, cash-flow projections, financial needs, debt repayment, revenue projections, planned investments, workforce expectations and consumer behavior. It enables informed decision making based on comprehensive and up-to-date projections.
“SMEs are crucial to Canada’s economy, responsible for 88% of private sector jobs and generating over 50% of the country’s GDP. They drive innovation, job creation, and economic growth”, says Isabelle Hudon, President, and CEO, BDC. “With the index, BDC and Equifax are providing entrepreneurs with the ability to anticipate, and, more importantly, act, with confidence. As Canada’s development bank, we are proud to help bring yet another resource to empower support small businesses to defy the odds and make better decision about growth and opportunities.”
“Equifax Canada is proud to partner with BDC on developing this unique and innovative economic indicator which provides insights for Canadian businesses and lenders,” said Sue Hutchison, President and CEO of Equifax Canada. “Small and medium businesses are a major economic driver in Canada. Using our robust data, this index will help Canadian businesses and lenders navigate the complexities of the Commercial market.”
The Canadian Small Business Health Index is a powerful tool that combines data from knowledgeable sources with real experiential input. Equifax leads the Credit Performance component, BDC leads on the Business Confidence component, and each organization contributes equally to the Growth Projection component. The Business Environment component is based on public macroeconomic data. BDC data comes from BDC’s Investment and Financing Outlook Survey (IFOS), which is conducted quarterly. Data from companies with more than 500 employees is excluded. Anonymized Equifax data comes from all credit product-providing institutions that subscribe to Equifax. The collaboration between BDC and Equifax will help entrepreneurs thrive and contribute to the economy.
For more information on the Index or its methodology, click here.
About Equifax
At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by nearly 15,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit Equifax.ca.
About BDC: 80 years as Canada’s bank for entrepreneurs
BDC is a partner of choice for all entrepreneurs looking to access the financing and advice they need to build their businesses and tackle the big challenges of our time. Our investment arm, BDC Capital, offers a wide range of risk capital solutions to help grow the most innovative firms. BDC’s development role means we are in a state of perpetual evolution – wherever entrepreneurs go and whatever the Canadian economy needs – we will be there to help them defy the odds. 80 years later, that commitment remains very much alive. The financial value of BDC’s services is estimated to add $23.6 billion in GDP to Canada’s economy over the next five years. We are one of Canada’s Top 100 Employers and Canada’s Best Diversity Employers and the first financial institution in Canada to receive the B Corp certification in 2013. For more information on our products and services and to consult free tools, templates, and articles, visit bdc.ca or join BDC on social media.
SOURCE Business Development Bank of Canada
