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Québec, March 27, 2014 –Québec, le 27 mars 2014 – In 2011, over a third of SMEs in Québec (36.5%) sought external financing. This is much higher proportion than that observed in 2007 (26.4%). SMEs that had their application approved were more likely to record sales growth (70.6% of them, against 60.3% for all of SMEs) and to be present in international markets (12.5% of them, against 9.8% for all of SMEs). These results are drawn from a report released today by the Institut de la statistique du Québec on the Survey on Financing and Growth of Small and Medium Enterprises–2011, which was conducted by Statistics Canada. In addition, the Science, technologie et innovation en bref bulletin, also published today, compares financing application in 2011 to that of 2007.

External financing applications were essentially in loan form

Of the 36.5% of SMEs that applied for external financing, 29.5% made loan applications. Proportions of SMEs which applied for government financing (6.6%), lease financing (4.4%), trade credit financing (1.9%), and equity financing (approximately 1.3%) were modest.

Some SME groups had much higher than average loan application rates, scored high approval rates and less restrictive loan terms and conditions

This was true for SMEs with 20 to 99 employees, 100 to 499 employees, manufacturing industries, innovative SMEs (especially those involved in processes and organization), and SMEs which used an intellectual property protection method (except patents). The first two groups were more likely to record sales growth between 2009 and 2011 (64.1% and 72.9% respectively, against 60.3% for all SMEs), while the three other groups were more likely to anticipate sales growth between 2012 and 2014 (64.3%, 74.0% and 76.7% respectively, against 63.1% for all SMEs). These five groups were also more present on international markets (between 17.3% and 31.9%) than all SMEs (9.8%).

Some SME groups had much higher than average loan application rates, but received low approval rates and more restrictive loan terms and conditions

This was true for SMEs in knowledge-based industries, patentees and SMEs 3 to 10 years of age. A significant proportion of them (33.1%, 41.6% and 24.9%, respectively, against 17.3% for all SMEs) reported that difficulties in obtaining funding was an obstacle to their growth.

Some SME groups had much lower than average loan application rates and had their application approved under more restrictive loan terms and conditions

This was true for SMEs of 1 to 4 employees, SMEs of the Montréal CMA, and SMEs whose sole proprietor or majority owners were women or were born outside Canada. These four groups were generally less likely to register sales growth between 2009 and 2011 (58.3%, 54.2%, 52.3% and 51.2% respectively, against 60.3% for all SMEs).


The Institut de la statistique du Québec produces, analyses and disseminates official, objective and quality statistical information on various aspects of Québec society. It is the statistical coordinator for Québec and the relevance of its work makes it a strategic ally for decision makers and all those wishing to learn more about Québec.

Sources:

  • Pascasie Nikuze
    Economist
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    Communications Advisor
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