Canadian SMEs optimistic about growth despite technical skills challenges
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PayPal - 47% of Canadian online small business owners admit they have not expanded in the last three years – with a lack of technical expertise as a leading barrier to growth for more than half (59%) of respondents.
- 70% of SMEs that sell online believe it is important to invest in technology and Artificial Intelligence (AI) skills to adapt to a rapidly changing online environment
The research delves into the primary barriers Canadian SMEs surveyed perceive as potential hindrances to their short-term growth plans. These include:
- Challenging economic climate (42%)
- Competition in the industry (36%)
- Consumers purchasing less (32%)
It isn't just external factors that business owners feel will limit their ability to expand – they feel a lack of business confidence and skills will hold them back. Almost half (48%) of respondents identify acquisition of new customers as a significant challenge in expanding their online presence, whereas more than a third (33%) face difficulties in boosting customer conversion rates, and a quarter (24%) grapple with cashflow management.
What's more, one in five (19%) say they find it difficult to know which payment methods to offer, such as instalment payment options like buy now, pay later or offering a range of digital wallets that consumers prefer to pay with.
"With over 80% of online sellers encountering growth hurdles, it's imperative that we help them overcome roadblocks," said
Recent research shows there were over 70,000[2] reported cybersecurity incidents in
Nearly half (46%) report they do not feel prepared about their ability to protect their business and customers from fraudulent transactions. This is in addition to 43 per cent who are worried about their ability to manage and protect customer information online.
Despite the sentiment around short-term growth, Canadian small businesses that sell online are continuing to seek different strategies and tools to increase their impact. This motivation comes from more than half (61%) of online small business owners who believe the future is bright in
To compete on the global arena, many are looking to expand beyond domestic borders and be a part of the global small business community, with 42 per cent anticipating an uptick in international sales this year. This builds on the 40 per cent who report that cross-border sales have helped contribute to revenue growth in the past year.
Additionally, 63 per cent of Canadian SMEs report that giving shoppers more choice in how they can pay will be important in helping them turn prospects into customers and grow sales, reinforcing the value of being able to reach different markets and exchange in their local currency. To manage these transactions, 80 per cent feel it's important for small online businesses to have a comprehensive suite of solutions through a single integration to ensure they have a strong and user-friendly platform both in the front and backend to keep up with the demand.
Reflecting the belief that digital transformation will be key to their future growth, 70 per cent of SMEs believe it's important to invest in technology and AI skills to adapt to a rapidly changing online environment. In 2024, Canadian SMEs say they will be investing in areas such as improving their online and social media sales, with 51 per cent planning to ramp up sales efforts through these channels to foster growth. Other targeted areas for investment include online marketplaces (39%), international sales expansion (28%), and reinforcing online security and payment methods (17%).
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PayPal's 2024 Business of Change Report of 500 CA SME owners conducted by OnePoll in |
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