A characteristic of a naturally growing economy is a steady increase in the population of companies. However, for five years after the start of the crisis, we saw virtually no increase in the population of Canadian companies. This matters, a lot. Large, established companies certainly provide the foundation of economic growth. As they grow, or become more productive, or generate new ideas, everyone benefits.
However, it is the creation of new companies that serves as a natural engine for growth. New ideas, new products and new ways of producing them are often the seeds of new companies. As they grow from one employee, to five, to 20 or more, they generate an outsized proportion of employment – in every economy, not just ours.