SME Financing Data Initiative September 2006

Small and medium-sized enterprises (SMEs) comprise the majority of Canadian firms that sell goods and services abroad. Because their exports are linked to increased productivity, job creation and economic growth (Baldwin and Gu, 2003; Lefebvre and Lefebvre, 2000), these SME exporters merit closer study. This article presents a profile of Canadian SMEs that exported in 2004, using the comprehensive database of the SME Financing Data Initiative and two measures: “export propensity, ” the percentage of firms that export, and “export intensity, ” the percentage of total sales these firms derived from exports. The profile examines the distinguishing features of SME exporters and their financing needs, and provides insight into the differences between exporters in the manufacturing and service sectors. It also challenges some assumptions about how Canadian businesses expand