And how do they compare to those of international peers?
Canada’s small businesses are focused on growth but beginning the new year with continued concerns about the state of the economy and how they will navigate additional pressures following recent challenging years.
Rising costs (76%) and staffing levels (40%) are among the most cited concerns of SME leaders in Canada who have participated in an international survey of 79,000 businesses by Peninsula Group.
Canadian employers are also concerned about increased payroll costs (45%) as their biggest staffing challenge and employees in Canada are the most likely to get a pay rise this year, more so than those in the other countries included: Australia, Ireland, New Zealand, and the UK. Almost two thirds of Canadian respondents said they had implemented pay increases to handle the labour shortage.
Canadian workers, along with those in Ireland, are most likely to be in the workplace full time with respondents in these countries less likely to offer hybrid working although more than half of Canadian firms have offered flexible working hours to aid employee retention and this is the number one benefit offered for this purpose globally.
"Based on our analysis of the survey results, Canada comes out on top as the best place to build a business in 2025, while employers in the UK and Ireland feeling least optimistic about the outlook for the year ahead,” said Peninsula Group Chief Operations Officer Alan Price.
Price added that the outlook for Canadian businesses remains positive despite the challenges.
“If recent history has proved anything, is it that Canadian businesses are resilient. I have no doubt that with the right knowledge and preparation, Canadian businesses can and will make it through this period of transition and come out stronger,” he said.
