This report discusses family-owned enterprises (63.1 per cent of all private sector firms in Canada), and suggests that data gaps are the biggest challenge for further research on this sector.
Family-owned enterprises (FOEs) are a critical component of the Canadian economy. FOEs account for 63.1 per cent of all private sector firms in our economy and generated 48.9 per cent of Canada’s real GDP in the private sector, at $574.6 billion. They also employ 6.9 million people across the country—equivalent to 46.9 per cent of private sector employment.
The analysis in The Economic Impact of Family-Owned Enterprises in Canada shows data gaps remain the biggest challenge for further research. More in-depth information on topics such as family trusts and family firm governance must be developed and made available to allow for a greater understanding of the family enterprise landscape in Canada. Given demographic trends and the looming succession of many family enterprises, the data gaps in our understanding of this important part of the economy are worrying.