Sage’s annual survey of 12,000 small and medium-sized business (SMBs) leaders globally – ‘Small Business, Big Opportunity’ – finds that business confidence among SMBs has reached new highs, with 86% expressing optimism about their success, up from 80% in 2023.
This surge in confidence is attributed to improved operational efficiency, increased consumer spending, adoption of new technology, and enhanced cash flow, with nearly all SMBs (95%) recognizing their essential role in driving growth within their national economies, it said in a news release.
“The data shows that Canadian SMBs are outpacing the global average in key areas, like digital investment (94% prioritize it versus the global average of 87%) and anticipated revenue growth (81% in Canada versus 70% globally). Canada’s leadership in digital adoption and growth among SMBs could be attributed to several factors: government support through digital adoption programs and the nation economies’ stability and resilience, allowing businesses to invest in growth and technology,” said the company.
Key Canada Findings:
- Confidence & Revenue Growth: Canadian SMBs reported impressive revenue gains, with 58% seeing growth over the past year, surpassing the global average of 45%. Looking ahead, 81% of Canadian SMBs expect further revenue increases, reflecting a higher optimism than their global peers (70%).
- Focus on Digital Transformation: A remarkable 94% of Canadian SMBs indicated that digital technologies are integral to their revenue strategies, compared to 87% globally. Driven by this priority, 76% of Canadian SMBs plan to increase their investment in technology over the next year, with a particular emphasis on artificial intelligence (AI) as a catalyst for future growth.
- Efficiency and Innovation: By embracing digital tools, 78% of Canadian SMBs report they can focus more on higher-value tasks, significantly exceeding the global average (71%). This shift underscores a commitment to operational efficiency and workforce productivity, as 60% credit improved efficiency for their business confidence.
While Canadian SMBs have shown remarkable resilience, they continue to face challenges, particularly in managing rising costs and cash flow concerns. More than 60% of businesses report increased operating costs, and 53% anticipate further cost pressures in the coming year. As they navigate these challenges, SMBs express a need for supportive policies that can alleviate financial burdens and sustain their digital progress, said the report.
Mark Hickman
“Small businesses are vital to Canada’s economy and communities, and their resilience and adaptability are truly inspiring,” said Mark Hickman, Managing Director, North America at Sage.“This year’s report underscores that digital technology is not just a growth tool; it’s a lifeline for Canadian SMBs. We’re committed to advocating for the conditions that will allow these businesses to thrive, from better access to digital resources to supportive economic policies.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list. He was also named by RETHINK to its global list of Top Retail Experts 2024.
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