Estimates suggest that over 90% of Canadian businesses are small and medium-sized enterprises (SMEs) with no more than 500 employees on average. These businesses employ over 8.3 million people and contribute 38.4% of Canada’s GDP (Gross Domestic Product).
Such statistics prove that these businesses are not only significant contributors to Canada’s economy but also lucrative options for immigrants seeking entrepreneurial opportunities in Canada. While the economic growth in Canada has slumped due to the global pandemic, small businesses can still thrive with the right approach and idea. Here are five lucrative industries worth looking into in Canada.
Transportation and Storage
According to estimates from Canada Statistics, over 86% of SMEs in the transportation and storage sector are profitable, with more than $279,000 in average annual revenues. That said, the Canadian transportation and storage sector is broad and comprises of profitable niches such as:
- Passenger transportation
- Freight transport/logistics
- Warehousing and storage
What makes this industry viable for potential small business owners is the ability to start small and gradually scale up. For instance, you can start a logistics business by purchasing one delivery truck and soliciting a few clients. As the customer base of your logistics business grows, you can scale up by purchasing more delivery trucks and hiring more drivers.
Storage is also a viable option conducive for small starters. You can begin your storage business by acquiring a lease for modest warehouse space and promoting your business to land your first clients. If you have the requisite financial and managerial capacity, you can offer both logistics and storage services for potentially bigger profits.
Real Estate
Among the telltale signs of a top-level economy is a thriving real estate market. Naturally, the more businesses flourish, the greater the demand for office and housing space. Considering the upward trajectory of Canada’s rental industry, and an average 46.5% profit margin for Canadian real estate businesses, this industry promises great returns for investors.
As a real estate professional, you can act as an intermediary between buyers and sellers, help your clients buy or sell properties and manage investment real estate on behalf of your clients. If you enjoy staying on top of the real estate scene and have excellent people skills, then you might enjoy a successful career as a real estate professional.
Fitness and Recreation
If you are passionate about fitness and enjoy social interactions, you could transform your love for health and well-being into a successful business. Boutique fitness centers have taken North America by storm over the years, providing big chain gyms a run for their money.
Whether your de facto choice of workout is yoga, CrossFit, boxing or martial arts, properly marketing it and selecting the right location can make your business successful. According to reports from the Canadian government, approximately 70% of fitness and recreational businesses are profitable.
Some of the well-performing businesses in this sector make upwards of $312,000 in average yearly revenues. However, this industry is not for the fainthearted since it requires a lot of hard work and dedication to succeed.
Waste Management
Waste accumulation is among the unavoidable results of a flourishing economy. As disposable income increases, so does the country’s waste. Since waste is not good for the environment and is probably here to stay, investing in waste management can prove to be a worthwhile venture.
This industry is an excellent opportunity for environmentally conscious entrepreneurs to not only make a profit but also promote a sustainable future through waste management and, if possible, remediation.
Financial Services
While this industry has a significant barrier to entry due to the expertise required, it is worth considering for people with backgrounds in finance management, financial consulting, bookkeeping and accounting. This venture allows financial professionals to sell their knowledge as human capital, e.g., streamlining a company’s accounting processes or helping it save on taxes.
The beauty of this venture is that lifetime learners can constantly update their knowledge to match the current demand, regardless of the economic and technological changes.
