Scotiabank survey reveals strong desire to invest in digital transition
Canada’s small business owners have a positive outlook for their business but need advice and guidance to help them navigate some rocky waters in the near term.
Scotiabank’s fourth annual Path to Impact Report has just been published highlighting the optimism shown by this important sector of the Canadian economy, but also the challenging times that continue to stand in the way of growth including inflationary pressures and cash flow concerns.
Sentiment is improving with two thirds of survey respondents extremely or very optimistic about the future state of their business – rising to 74% among those who identify as Black, Indigenous, and People of Colour (74%).
Half of all respondents say they are in better shape now than two years’ ago during the pandemic, but inflation remains a key concern for 55% of poll participants while supply shortages (24%), keeping up with demand (23%), and hiring (23%) are also challenges.
“Canadian small businesses continue to show remarkable resilience while increasingly adopting a resourceful mindset,” said Jascha Jabes, VP of Small Business at Scotiabank.
Seeking help
With financial challenges top of mind, small business owners continue to reach out for personalized financial advice through digital resources and from their advisor.
Nine in ten said that they have sought advice in the past two years including 30% who have used their bank’s digital resources.
With digital transition a big factor for growth, AI technology (44%) is cited as the top tool business owners believe would help effectively grow their businesses though efficiencies and streamlined operations, but better access to financial advice (43%) is close behind.
Business owners aged 18-34 foresee the need for more financing compared to business owners over the age of 55 (63% vs 21%).
“In 2023, tailored advice from an advisor who understands your business and growth objectives matters more than ever,” concluded Jabes.
