OTTAWA – Although 47 percent of all Canadian online small-medium enterprises (SMEs) report their business has not expanded in the last three years, yet 82 percent believe that they still have the potential to experience decent growth.
This according to PayPal’s 2024 Business of Change Report, which surveyed 500 small business owners across Canada, and reveals that 63 percent of online businesses plan to expand their business online in the next one to two years, but 59 percent feel a lack of technical expertise will limit their business’ growth. 88 percent of Canadian online small business owners agree online sales are key to expanding their business, and 66 per cent say that setting up a business has been harder than they thought.
The report identifies potential hindrances to short-term growth being the challenging economic climate, competition and consumers purchasing less. That, plus a lack of business confidence and skills, as 48 percent of respondents identified the acquisition of new customers as a significant challenge in expanding their online presence.
Recent research shows there were over 70,000 reported cybersecurity incidents in Canada in 2023, marking a 25 per cent increase from the previous year. 46 percent 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.
Still, 61 percent of online small business owners believe the future is bright in Canada. Many are looking to expand beyond domestic borders and be a part of the global small business community, with 42 percent 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. 70 per cent of SMEs believe it’s important to invest in technology and AI skills to adapt to a rapidly changing online environment.
Business Examiner Staff
