A modest increase in workplace efficiency could deliver a significant boost to Canada’s economy, according to a new report from the Business Development Bank of Canada (BDC).
The report suggests that if every small and medium-sized business (SME) in Canada increased its productivity by just five hours per month, the national GDP could rise by 1.2 per cent, which BDC says is equivalent to approximately $700 per capita.
“In my 13 years at BDC, I’ve never had more entrepreneurs ask about productivity than now,” said Pierre Cléroux, vice-president, research and chief economist at BDC. “Business owners know it’s no longer optional in our new economic reality. Many don’t know where to start, but aiming for a five-hour gain makes it simpler and more tangible. And it doesn’t always require major investments—it’s often about cutting waste.”
Pierre Cleroux
BDC’s new report highlights seven entrepreneurs from various sectors across Canada who have improved performance through simple, low-cost changes.
“The 5-hour hack can change the course of success for any business,” said Cléroux. “The most productive companies can generate six times more sales and four times more profit—with the same number of employees. They get there by improving processes, embracing innovation, and adopting smart technology. When business owners take a step back, are willing to rethink the everyday and assess their operations with fresh eyes, they often discover opportunities hiding in plain sight.”
He added: “Small, consistent improvements aren’t just tweaks—they’re can be game changers. Any business, regardless of size or sector can aim to gain five hours of productivity per month, whether you’re a team of five or fifty. And the best part? You can start today.”
In support of industrial innovation, BDC also announced an additional $200 million for its Industrial Innovation Venture Fund. The fund, which launched in 2019, supports companies developing technologies such as robotics and industrial software aimed at improving efficiency in sectors like manufacturing, ag-tech, food tech and critical minerals.
According to the bank, Acerta Analytics helped one facility reduce scrap rates by double digits, while MineSense Technologies reported an 18.1 per cent increase in ore production at a British Columbia mine.
Through this fund, BDC says it is helping bring scalable technologies to market to support Canadian SMEs in staying competitive.
BDC is also offering a free Workforce Efficiency Benchmarking Tool to help business owners compare their productivity with peers. Advisory services are available to help implement operational changes.
According to the bank, productivity in Canada has grown at half the pace of the United States over the past two decades, leaving Canada 28 per cent behind its southern neighbour and 18 per cent below the G7 average.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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