Despite challenges, 82% of Canadian SMEs believe they can achieve growth with the right strategies
Nearly half (47 percent) of Canadian online small-medium enterprises (SMEs) report their business has not expanded in the last three years.
However, this lack of growth has not dampened their optimism. 82 percent of SMEs believe that with the right strategies to overcome barriers, their business can experience decent growth.
PayPal's 2024 Business of Change Report reveals that more than half (63 percent) of online businesses plan to expand their operations online in the next one to two years. However, nearly six in ten (59 percent) feel that a lack of technical expertise will limit their growth.
Surveying 500 small business owners across Canada, the report finds that although the majority (88 percent) of online Canadian small business owners agree that online sales are key to expanding their business, 66 percent say that setting up a business has been harder than they expected.
The research identifies primary barriers to growth perceived by Canadian SMEs. These barriers include:
- Challenging economic climate (42 percent)
- Competition in the industry (36 percent)
- Consumers purchasing less (32 percent)
Business owners also feel that internal factors, such as a lack of business confidence and skills, will limit their ability to expand. Almost half (48 percent) of respondents identify acquiring new customers as a significant challenge in expanding their online presence.
More than a third (33 percent) face difficulties in boosting customer conversion rates, and a quarter (24 percent) grapple with cash flow management.
Additionally, one in five (19 percent) say they find it difficult to determine 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.
"With over 80 percent of online sellers encountering growth hurdles, it's imperative that we help them overcome roadblocks," said Nitin Prabhu, vice president, Small Business and Financial Services, PayPal.
“With PayPal Complete Payments, our most advanced offering in the market, we're committed to simplifying the complexities faced by small business owners in Canada. Our comprehensive solution fosters growth, provides advanced fraud protection, and streamlines cross-border trade, empowering entrepreneurs to thrive.”
Recent research shows over 70,000 reported cybersecurity incidents in Canada in 2023, marking a 25 percent increase from the previous year.
In a world where cybersecurity risks continue to be a threat, Canadian small businesses must tackle day-to-day responsibilities while also addressing cybersecurity concerns.
46 percent of SMEs report they do not feel prepared to protect their business and customers from fraudulent transactions. Additionally, 43 percent are worried about their ability to manage and protect customer information online.
