BR Newsletter

For the last 14 years I have assisted many new entrepreneurs and small businesses with their market research. One of the most utilized market resources is the Census.  The advantage of the Census is that it allows a small business to assess its local market with reliable data at a reasonable cost.  Much of the data is available free of charge.   This essential information helps to ensure your business is being launched or expanded on more than just a hunch.

For those with privacy concerns it should be noted that this data is only numerical in nature.  Individual names and addresses are not accessible from the Census.  It is not a mailing list.

The proposed removal of the long form from the Census is a foolish one.  The long form data is essential for not only new entrepreneurs but for businesses of all sizes,  as well social groups, community organizations, municipal, provincial and federal governments and yes even the political parties who use local Census data to strategize for their re-election campaigns!

Industry Minister Tony Clement is naive to think that the new survey will garner more responses because it is distributed to more households.  The Survey of Household Spending (SHS), a detailed voluntary consumer expenditure survey from Statistics Canada garnered an average national response rate of 63%.  This rate applied to the new voluntary survey proposed to replace the long form would produce fewer responses than the actual Census.

What makes the voluntary survey especially troubling is the inevitable regional variation in response rates.   At a provincial level the SHS response rate ranged from 57.2% in Alberta to 71.3% in Newfoundland & Labrador.   This type of variation will be even more dramatic from neighbourhood to neighbourhood.   A voluntary survey will not provide the same quality of data at a local level.   Information at a DA level will not be possible.   Future business decisions, social and government policies will be based on insufficient data.   One of the greatest benefits of the Census is the insight it provides at a neighbourhood level.  This will be lost for no apparent reason other than a cabinet whim.

Industry Minister Tony Clement comments that fears are “overwrought”.  Perhaps it is his  government that is “overwrought” with concern about potential Census protests and so feel the system that has been in place for 35 years should be changed without thought or public consultation.   When I worked at Statistics Canada during the 1996 Census there were numerous people who came into the Toronto office concerned about filling out the Census.  Some were extremely angry.   Yet once it was explained why the Census was taken and what the information was for, they filled out their forms without further distress.  I did not threaten people will jail time or place them under duress, I simply explained the rationale behind the questionnaire.

The payback from detailed Census data collected once every five years from one in five households is enormous.  All Canadians benefit.  The removal of the long form is a very short-sighted and foolish policy decision.

With an aging population and the increasing stress of work-life balance, the opportunities in the Canadian home care services market are undeniable. This does not mean however you can get away without doing any research.

There are a number of basic resources every researcher in this sector should be aware of.

First and foremast, as is the case for most demographically driven businesses, is the Census.

The best place to start is the Household Living Arrangement table (97-553-XCB2006019).  This table lets you determine the potential size of your market by identifying the living arrangements of seniors in your local community (e.g. living with relatives, living alone).  It also includes the variables of gender and age group.

While this basic number is necessary, you need to look further. When you are researching this market, you need to consider not only the seniors who will use your services, but more importantly the informal caregivers who will likely be making the purchasing decision. The Census contains a unique variable which helps you to quantify this unpaid caregiver market namely “hours spent providing unpaid care or assistance to seniors”.

The details associated with this variable include number of hours of unpaid care provided and the age group and gender of caregivers in communities across Canada. You can access them in the Unpaid Work by Census Division & Census Subdivision table (97-559-XCB2006015).

If you are interested in local neighbourhood data you can use the GeoSearch 2006 resource however it only provides data on households reporting hours spent on senior care as a whole. There is no cross-referencing of variables (e.g. age and gender) nor any indication of the number of hours spent.

For more information on accessing local Census data see our Research Guide.

For basic financial benchmarks use the SME Benchmarking Tool. A non-medical home care business falls under the North American Industry Classification heading 624120 – Services for Elderly and Persons with Disabilities. For the official definition of this heading see the Stats Can web site.

We have a number of government and non-government references related to home care in our Stats Link Canada Source Lists. Look under the subject headings “Home Care” as well as “senior care“

One of the major Stats Can references is the Participation and Activity Limitation Survey Tables (Part VI).

It includes data tables on help with everyday activities, unmet needs and the nature of the help providers. This data will give you some perspective on the types of home care needed and how these are currently being met. Especially look at the table on reasons specified by respondents regarding unmet needs. This will alert you to potential market issues you will need to overcome.

Finally make sure you look at the Stats Link Canada subject heading “Sandwich Generation”.  This refers to individuals who are providing care to both their children at home and their own parents. You will want to understand this segment of the market especially those that are feeling overburdened. If they have the financial resources they may be a very good target market. (i.e. they are in need of help and are able to pay for it). Our Source Lists reference a number of polls and surveys on this psychographic group.

For a basic overview of the size of the “sandwich generation” see the Census table on Unpaid Work by Presence & Age of Youngest Child (97-559-XCB2006007). The data is only available at a provincial and metropolitan area level but it can useful in quantifying the number of households where care-giving duties are split between two generations.

There are definitely business opportunities in the home care market but as with any business, make sure you do your research first!

For a FREE TRIAL version of the Stats Link Canada subject headings referenced above click on the following links:  Home Care, Senior Care, Sandwich Generation

There are a number of detailed Census 2006 tables which you can access online free of charge.  (See our Census 2006 Research Guide for more information.)

One of my favourites though, at least from the point of view of assisting new entrepreneurs is the Detail Occupation Table by Selected Demographic, Cultural, Labour Force, Educational and Income Characteristics.

Many self-employed entrepreneurs start businesses that in many ways are actually outsourced occupations such as Graphic Designers, Virtual Assistants, Bookeepers, Web Designers, Photographers, Midwives & practitioners of natural healing etc

This Census table allows you to construct a statistical profile of your occupation including age, gender, income, self-employed (with and without employees), average weeks worked, industry of employment etc. The data is available at a nation, provincial and metropolitan area level.

So for example if we were interested in Graphic Designers in Hamilton Ontario this table would reveal:

There are 1145 in Hamilton, 755 of which are male. More than half are between the ages of 25 and 44 years old. Nearly one in five work from home. Unemployment ran at 3.9% in 2005 vs. the Hamilton overall average of 4.4%. Self-employment is popular with more than a quarter running their own business. Of these entrepreneurs, one in three have their own paid employees. The median employment income for all graphic designers working full-time in Hamilton is $35,250.

All this information can be helpful, in understanding income expectations, work demand, competition and industry demographics.

The above table provides a basic Occupation profile covering a variety of Census variables. For a bit more cross-referencing on wages and salaries alone see the following table:

Wage & Salary statistics by age, gender and education (Canada & provinces only)

This table allows you to assess the impact that gender, education and experience (as reflected in age group) have on salary levels within your occupation.

Both of these detailed occupation tables are organized by National Occupation Classification code. There are 720 different occupation headings. If you do not know your NOC code you are not alone! You can find it in the Stats Canada publication National Occupational Classification for Statistics (NOC-S) 2006

The online HTML version of this publication has a keyword search feature as well as an occupational hierarchy you can use to “drill down” to your specific occupation.

Now I would remiss not to admit that 2006 Census data is starting to get a bit old. Keep in mind however that these figures will not be updated until 2011 and even then the new data will not be fully released until 2013. Moreover these tables contain details that should not be ignored.

If you want a more current perspective, use the Census data as a baseline with which to start a conversation with members of your industry and outside stakeholders. How do they perceive the numbers have changed? Oftentimes you can use older data as a “currency” with which to peak the interest of possible contacts. ”I found these numbers from the Census and I was wondering if you could tell me whether you think they still reflect the realities of our industry today?”

Never dismiss quality data out of hand. There can always be a use for it!