Sage (FTSE: SGE), the leader in accounting, financial, HR and
payroll technology for small and mid-sized businesses, today
released a new global report, Small Business, Big Opportunity? In
Canada, the report found that while more than two-thirds (67%) of
small and mid-sized businesses (SMBs) are confident that their
businesses will be successful 12 months from now, many have
struggled to secure financing and government support to stay
resilient over the past year.
Sage surveyed over 13,000 SMBs in key markets across North
America, EMEA and APAC to understand how SMBs are surviving and
thriving despite current public health, economic and societal
challenges, including rising costs of living and the ongoing impact
of the pandemic. For the past two years, the world has faced a
difficult and complex situation, with SMBs being especially
impacted.
Of the small percentage of Canadian SMBs who currently do not
feel confident about their business (15%), a majority attribute
this to reduced consumer spending (41%), inefficiencies exacerbated
by the pandemic (39%) and expected lack of government aid and
support (20%).
In contrast, the majority of SMBs who expressed business
confidence (67%) found that the quality of their staff (35%),
increased consumer spending (27%), an increased customer base
(45%), and efficiencies adopted during the pandemic (25%) were all
factors contributing to their optimism.
“SMBs are the engines of our economy, representing 98% of all
businesses across Canada. For Sage, being the trusted network for
SMBs during these trying times means ensuring they have the right
people, processes, and technology in place to be successful,” said
Daniel Oh, Country Manager (interim), Sage Canada. “The challenges
of the pandemic have illuminated the need for businesses to be on
the path towards digital adoption, removing unnecessary friction
and delivering insights that help them run their business more
smoothly.”
Financing the futureDuring the past 12 months,
cashflow and liquidity had a major impact on SMBs’ success and
their confidence in the future. The survey found that more than a
quarter of Canadian SMBs (27%) cited increased cashflow as the
biggest factor for their confidence. Conversely, two in five
businesses (39%) claimed that decreased cashflow was the main
contributing factor leading to their negative outlook.
Additionally, the volatility of the past year with new COVID-19
variants and continued lockdowns forced many businesses to look at
alternative options for financing. The survey found that a majority
of Canadian SMBs (60%) sought some form of financial support over
the past 12 months. Line of credit/credit cards (19%), government
grants (18%) and bank loans (14%) were identified as the top three
forms of financial support, while almost one in ten businesses (9%)
had to turn to family and friends for financial support during this
time.
The survey also revealed that Canadian SMBs continue to see
cashflow/liquidity (15%) and limited access to financing (10%) as a
major risk to their business over the next 12 months. However, they
are more concerned with factors outside of their control that could
have a significant impact on their operations. The biggest risks
SMBs identified for the next year include continued business
interruptions due to COVID-19 (i.e., potential for additional
lockdowns, travel restrictions, employees testing positive for the
virus) (32%); increases in costs (i.e., inflation, wage increases,
rent increases) (32%); and disruptions in the supply chain
(20%).
SMBs turn to the government to help drive
growthIn addition to improving cashflow and access to
financing, SMBs – regardless of their positive or negative outlook
– saw government support and aid as being essential during the past
12 months. Moreover, one in five businesses believe that a lack of
government support would have led to a more negative outlook for
their business.
When asked whether the government was taking enough action to
help SMBs mitigate risks over the past year, 44% agreed with the
level of support from the federal government, compared to 39% at
the provincial level. Interestingly, 30% of businesses were neutral
as to whether the federal or provincial governments were doing
enough for SMBs.
However, many SMBs believe that ongoing government support will
significantly contribute to the growth and success of their
business in the coming year. The survey found that a quarter of
SMBs (25%) believe that increased government support – including
financial support and policies aimed specifically at helping SMBs –
will be essential for their future growth.
“As Canada’s economic driver, SMBs are crucial to helping
communities and people thrive. It is vital that partners – in both
the public and private sector – work together to empower SMBs in
their post-COVID recovery and ensure they have the financial
support, technology and resources to experience long-term growth
and success,” concluded Oh.
To learn more, please download the full Small Business, Big
Opportunity? report.
To find out how Canadian businesses are building a resilient
future, please download the full Forward Together: Building a
Resilient Future report.
Media contact Monique
Daniel Sage monique.daniel@sage.com (905)
781-0758
Methodology
Portland Communications’ specialist research team conducted an
online survey involving 13,118 SMB decision makers between November
25th and December 2nd, 2021. The markets included as part of this
study are in the UK, US, Canada, France, Spain, Germany, Australia,
South Africa, Portugal, Malaysia, and Singapore. In each market,
decision makers at businesses employing fewer than 250 people were
targeted.
About Sage
Sage exists to knock down barriers so everyone can thrive,
starting with the millions of small and mid-sized businesses served
by us, our partners and accountants. Customers trust our finance,
HR and payroll software to make work and money flow. By digitising
business processes and relationships with customers, suppliers,
employees, banks and governments, our digital network connects
SMBs, removing friction and delivering insights. Knocking down
barriers also means we use our time, technology and experience to
tackle digital inequality, economic inequality and the climate
crisis.
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