Industry Canada's definition of “small business” is firms that have fewer than 100 employees. There are just over one million small businesses in Canada that have employees (excludes self-employed entrepreneurs). Ninety-eight percent of businesses in Canada have fewer than 100 employees.

Canadian SME Definition. Industry Canada uses the term SME to refer to businesses with fewer than 500 employees while classifying firms with 500 or more employees as "large" businesses.