What Is a Small to Medium-Sized Enterprise (SME) in Canada?

By Craig Anthony

0 min read

Small and medium-sized businesses have different definitions all over the world. In Canada, the following definitions apply:

  • Small business: A company with at least five paid employees, but fewer than 100 paid employees.
  • Medium-sized business: A company with at least 100 paid employees, but fewer than 500 paid employees.

It is estimated that approximately 98 percent of businesses in Canada are small, while approximately 1.5 percent are medium-sized. About 70 percent of the Canadian labour force works for small businesses, while about 20 percent work for medium-sized businesses.

The size distinctions are important; small and medium-sized businesses are treated slightly differently for tax purposes.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Qualifying for Farm Land Identification Program Tax Deferrals in New Brunswick

A number of provinces have programs to help farmers save money on…

Read more

Ontario Drops Small Business Tax Rate for 2018

Effective Jan. 1, 2018, Ontario is lowering the provincial income tax on…

Read more