Town of Cochrane Strategic Plan – Final Report October 2014
markets.173 This is important for the fact that the majority of job creation is generated by existing
businesses (76%), while investment attraction (15%) and new entrepreneurship (9%) lag
considerably far behind. In rural areas the figure is even more significant, where existing businesses
generate upwards of 86-90% of new jobs.174
A community therefore s tands to benefit in terms of its overall economic health when technological
solutions are adopted among its existing SMEs.
2.3 Potential for Market Expansion
As noted above, fundamental to community economic development is the potential for local
expansion into new markets. It is precisely the vastness of online markets that makes E-commerce a
powerful tool for enterprising small businesses.
Small communities need not look too far afield in order to leverage the benefits of the digital
economy. Canadians themselves lead global trends in Internet usage: approximately 8 in 10
Canadians are connected to the Internet, and spend an average duration of 45 hours/month
online.175 Statistics Canada notes that provincial Internet usage rates are led by British Columbia
(87%), Alberta (85%), and Ontario (84%).
Where E-commerce is concerned, the Canadian market grew 24% between 2010 and 2012,
accounting for $18.9 billion in sales. 56% of Canada’s Internet users made purchases online,
averaging 13 separate orders with a total of $1,450 spent per user. Of the remaining Canadians
online, an addition 21% researched products electronically but did not make a purchase.176 As
immense as Canada’s E-commerce sector is, the Canadian Internet Registration Authority notes that
Canada’s “Internet Economy” – the proportion of the country’s economic activity based entirely
online – is still 1% behind the G20 average (3% and 4% of GDP respectively). This indicates much
room for growth, particularly in light of the fact that only 41.1% of Canadian small businesses
currently have websites.177
173
Brock Dickinson, Millier Dickinson Blais (2013, April 29), Community Economic Development. Lecture, University
of Waterloo Economic Development Program, Year 1, Waterloo, ON. Used with permission.
174
Eric P. Canada, Blane, Canada Ltd. (2009), A community’s best companies are your competitor’s best prospects.
Available at: http://www.blanecanada.com/pdf/RE_Importance.pdf
175
Canadian Internet Registration Authority (2013). Fact Book 2013. Available at:
http://www.cira.ca/factbook/2013/index.html
176
Statistics Canada (2013). Individual Internet use and e-commerce, 2012. Available at: http://www.statcan.gc.ca/dailyquotidien/131028/dq131028a-eng.htm
177
CTV News. (2014) Less than half of Canadian small businesses are online: report. Available at:
http://www.ctvnews.ca/business/less-than-half-of-canadian-small-businesses-are-online-report-1.1734647
117