Growth or profitability first? The case of small and medium-sized Canadian enterprises

This Industry Canada study sheds new light on the nature of the relationship between growth and profitability for Canadian SMEs.

KEY FINDINGS:

  • A firm with a high level of profitability and a low level of growth has a greater chance of subsequently achieving high growth and high profitability than a firm with a high level of growth and a low level of profitability.
  • Human capital is a determining factor as it plays a positive role in a firm achieving superior performance in both growth and profitability. A firm's debt is also a significant factor that can slow progress.
  • The results of model estimations show that a firm's age has no effect on the evolution of its situation in terms of growth and profitability.

Read Industry Canada’s Growth or Profitability First? The Case of Small and Medium-Sized Enterprises in Canada.

About the Author

CPA Canada


Highlights

Chartered Professional Accountants of Canada (CPA Canada) annually offers its views on priorities for the federal budget. Review past submissions of pre-budget briefs and consultations, and post-budget release opinions and commentary.

Our Firm Directory allows you to search for Canadian CPA firms using our interactive map as well as other criteria.

Jointly presented by CPA Canada and CPA Ontario, The ONE is the must-attend, multi-track event of the year, designed for all CPAs who want to be at the top of their game.