Setting Up a Calgary Business
The prospects of setting up a business in the city of Calgary could be viewed from the multiple perspectives of demography, market growth, economic development, government policies, infrastructure, inflation, financing options, workforce availability, competition, etc. After analyzing these parameters in detail, you can create a database and list out the most lucrative businesses in which you have the experience. If you are a Canadian citizen or a permanent resident, it is easy for you to avail the grants and financing program benefits. Even if you are a foreigner with no PR, it is possible to start your business in Calgary with a real Canadian address.
Calgary Consumer Demographics – an Overview
According to the 2017 civic census results, the median age of Calgary is 36.4. Nearly 50% of the Calgary population is in the age group of 25 to 54. The median household income is stated to be the highest in Canada at an average of more than $104,530.
- Consumer Markets: The leading consumer markets in Calgary are distributed among the auto & transportation, business solutions, construction & real estate, health & wellness, home & elderly care services, fashion & lifestyle, tourism & travel, food & beverages, and consumer products. The Consumer choice awards in the month of July 2017 held in Calgary showed considerable growth opportunities for the B2C sections in these categories.
- Tourist population: The tourist consumers in Calgary contribute significantly to the economy. This phenomenon reached the heights in 2017. The Banff national park and lake are the most attractive tourist spots, with more than 65% of the domestic and foreign tourist visits every year. The most in-demand business generated by these tourists are stated to be hotel & apartment rentals, car and vehicle rentals, bar & restaurants, fashion & lifestyle, etc. The scope of growth for full-service hospitality businesses is estimated to increase sharply in 2018. The growth will naturally encourage affiliated services like infrastructure development, supply chain management, etc. hence, the SMEs from these business segments also have high growth rate projections in Calgary.
Calgary SME – Ever Growing Segment
- SME Category: The growing opportunities for SME in Calgary should give you another reason for setting up business here. The consistent growth in the economy, investments, entrepreneurship support programs, and government grants have helped the SMEs to great extent. 28.2% of the SME entrepreneurs in Calgary are aged between 45 & 54, while 24.2% are between 35 & 44. The other interesting aspect is the fall in a number of bankrupt SMEs from 2005 to 2017. This is said to the lowest in Canada.
- Core Infrastructure: The core infrastructure of Calgary is energy, transportation, and logistics. You can connect with consumers, suppliers, vendors, and other stakeholders within Canada, the Americas and the rest of the world. The phenomenal growth of the Information and Communication Technologies (ICT) in the year 2017 is another encouraging sign for SMEs. Now you can deploy the latest technology based gadgets and networks at highly affordable costs.
- Women SME: The nonprofit Alberta Women Entrepreneurs (AWE) has a significant presence in Calgary. The organization can provide a maximum financing of $150,000 for the business establishment and development. Besides, it also supports your marketing, product and service promotion, brand establishment, sustenance and expansion schemes.
Calgary Infrastructure – Solid Support
The Canadian federal government, Alberta provincial government, and the Calgary city council work in coordination to improve the infrastructural elements. The action plan for the period 2015-2018 focuses on many areas of SME in manufacturing, warehousing, logistics, product, and service oriented sectors.
- Industrial Land: The government provides land for setting up of SME industries in the production and processing sectors. The office of land servicing and housing is developing projects for the SMEs through Great-Plains Industrial-Park 4th phase, Dufferin-Inter-modal Park, Lincoln Business Park, Star-field industrial park and many others. These projects got initiated in 2013 and are expected to become functional by 2017. The 2018 plans include the Rocky view country, the town of Chestermere, municipal districts, and other extensions.
- Transport & Utility: The government plan “RouteAhead” is being seen as the biggest boost for the transport and utility corridors for the industrial, corporate, logistics, business, and commerce centers to be set up in and around Calgary. The need for feeder services shall create plenty of demand in the SME sectors, especially the services.
- Power & Energy: The power & energy supplies for the SMEs got a boost in 2016 when the Alberta government invited the Canadian Solar industries to set up plants in Calgary. Since then the projects are implemented in specific stages. The present rate of ¢/KWH (November 2017) is relatively lower compared to the ¢/KWH (December 2016) for the business and industrial sectors.
- Logistics & Distribution: The Calgary logistics park is a fast developing inter-modal and trucking logistics and distribution network. This infrastructure provides ample real estate space for small and medium scale companies to establish the base and grow. This park shall work as the major supply chain link provider for the SME businesses and industries in and around Calgary. With companies like The iTeam providing it Support
Calgary Government –Thinking Ahead
- Taxes & Statutory Fees: The 2017 Calgary budget for the SMEs proposed several changes to the existing taxation and statutory fee structure. Being the small business capital of Canada, Calgary has the most competitive tax rates compared to the rest of Canada. The government offers growth incentives for the improvement in performance shown by the SMEs in and around Calgary.
- Loans & Grants: The Alberta provincial government provides plenty of grants and loans for the SMEs. The programs like the micro voucher, voucher, SME initiatives, NRC IRAP, SR&ED grants and credits, Canarie cloud computing funds, and the accelerator are considered to be boon for the SMEs.
Calgary Business Scope – Highly Promising
You can expect to gain significantly by the future government plans and the expanding consumer markets in Calgary. You could choose from any of the listed business sectors, or search for newly emerging venues that match best with your experience and expertise areas.
References
- http://www.marketwired.com/press-release/southern-albertas-2017-consumer-choice-award-winners-2224988.htm
- calgarychamber.com
- http://www.canadastop100.com/sme/
- https://www.calgaryeconomicdevelopment.com/dmsdocument/166
- file:///D:/Downloads/FactSheet-SmallBusiness-2017-Edition-2017-05.pdf
- http://cwf.ca/wp- content/uploads/2017/06/CWF_Seniorpreneurship_Report_JUNE2017_WEB.pdf
- http://cwf.ca/wp- content/uploads/2017/06/CWF_Seniorpreneurship_Report_JUNE2017_WEB.pdf
- http://www.ic.gc.ca/eic/site/061.nsf/eng/h_02689.html
- https://www.eventbrite.ca/o/alberta-women-entrepreneurs-awe-2728148288
- https://www.culturetourism.alberta.ca/tourism/research-and-statistics/alberta-tourism-market-monitor/pdf/2017/july-market-monitor.pdf
- https://www.culturetourism.alberta.ca/tourism/research-and-statistics/alberta-tourism-market-monitor/pdf/2017/market-monitor-march.pdf
- http://www.calgary.ca/CFOD/Finance/Pages/Action- Plan/default.aspx?redirect=/ca/fs/pages/action-plan/
- http://www.calgary.ca/CS/OLSH/Documents/2013-0528%20OLSH%20CILS%20Report%20P10.pdf
- https://www.enmax.com/business/electricity-natural-gas/tariffs#DT
- https://innotechalberta.ca/
- http://www.innovatecalgary.com/files/public-files/video/financing-options-july-5-2016.pdf
