Fifty-eight percent of the region’s 787 tech companies have already reached profitability.
The Okanagan tech sector in British Columbia is delivering an outsized economic punch relative to its population size, according to a new report from tech accelerator Accelerate Okanagan.
Although the Okanagan accounts for less than 10 percent of BC’s population, the report revealed that its tech sector contributed an impressive $4.98 billion to the economy in 2023. By comparison, BC as a whole, with a population of over five million, saw its tech sector generate $16 billion in gross domestic product in 2022.
Accelerate Okanagan’s fourth economic impact study shows the region’s economic impact has grown nearly fivefold from $1.02 billion in 2013. That figure is determined using Statistics Canada’s input-output models.
The Okanagan is home to 787 tech companies employing 32,645 people.
The Okanagan region, which surrounds its namesake lake in south-central British Columbia, encompasses cities like Kelowna, Vernon, Penticton, and Salmon Arm. While its population may be small compared to major urban centres like Vancouver, it is home to 787 tech companies employing 32,645 people.
Among the Okanagan’s four census regions, the Central Okanagan—home to its largest city, Kelowna—was the driving force behind much of the area’s economic growth. The region generated $3.01 billion in 2023, employing over 19,747 people, according to Accelerate Okanagan’s report.
The report revealed that 61 percent of local tech companies in the Okanagan are under nine years old, and 58 percent have already reached profitability.
Top sub-sectors in Okanagan tech include advanced manufacturing, with companies like RainStick Shower and 4AG Robotics, cleantech with firms like Lomi and GreenStep, and SaaS businesses such as Minga and Trellis.
The report noted that quality of life, climate, and commute times were listed by respondents as some of the key benefits of building a tech company in the Okanagan. The greatest challenges for local founders, however, include access to capital and attracting new customers, according to the report.
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“The struggle to easily access growth capital and tech talent is a universal issue, but it’s magnified in the Okanagan by the region’s distance to major urban centers,” the report reads.
Sourcing technical talent also appears to be a challenge cited by those surveyed in the report, which is being exacerbated by a higher cost of living sweeping BC and other Canadian provinces.
However, the study found that the region’s reputation as a destination for young talent is taking hold, with 46 percent of employees being under the age of 35. The report noted that startups, for example, are benefitting from local graduates from institutions like Okanagan College and the University of British Columbia Okanagan Campus.
The report also found that the overall sentiment within the region’s tech ecosystem is largely positive, with 65 percent of tech companies preparing to grow their workforce in the coming year.
Feature image courtesy Unsplash. Photo by Kolby Milton.
