TORONTO, Feb. 22,
2024 /CNW/ -- GoDaddy's annual international research
initiative, Venture Forward, has released its inaugural report
revealing the state of Canada's
small business landscape. Drawing from data collected from over
770,000 Canadian small businesses, the landmark report offers
detailed insights into the opportunities and challenges facing this
vital sector of the economy.
The findings, published today, indicate a thriving small
business (0-9 employees) ecosystem in Canada, as the proliferation of online tools
and services means the required startup capital and educational
background required to start a business has never been easier to
achieve. GoDaddy's data shows that 58% of online small businesses
having been launched with less than $5,000 CAD in initial capital, while only 38% of
business owners report completing a college degree
showing education level of entrepreneurs doesn't impact their
success or satisfaction levels.
Unlocking the economic potential of small businesses
The study also highlights the significant returns on investment
for small businesses. More than half of small businesses generate
over $2,500 in monthly revenue.
Furthermore, one in four Canadian entrepreneurs now manage more
than one business, underscoring the significance of small
businesses to the national economy.
Navigating economic headwinds
But the broader economic landscape is not without challenges -
only 27% of small business owners expressed confidence in the
national economy over the next six months. Rising costs in energy
(36%), business administration (35%), raw materials (34%), and
transport costs (31%) have all been reported to impact their
respective bottom lines over the past year.
These challenges have contributed to increased stress levels
among small business owners. A startling 44% report experiencing
high to maximum levels of stress, anxiety, or burnout, with
financial concerns (50%) being the most significant factor,
followed by work-life balance (40%) and customer issues (21%) also
contributing their levels of stress.
Optimism and growth: The future of Canadian small
businesses
In spite of this, Canadian small business owners remain
optimistic about the future. An overwhelming 70% express optimism
about their business prospects, with almost all (94%), having
confidence in their ability to run their businesses.
Moreover, more than a third (35%) plan to hire additional
employees in the next 12 months, indicating their commitment to
growth and expansion. This underscores the importance of nurturing
Canada's small business community,
as the prosperity of these businesses contributes to the overall
prosperity of their communities.
Young Lee, Canada
Market Lead commented: "GoDaddy's Venture Forward
data is unique in its ability to capture and analyze small
businesses and demonstrates their enormous economic contribution to
Canadian life. Despite continued economic headwinds, our data shows
that small businesses in Canada
are resilient and flourishing. Whilst there is much to be
optimistic about, business owners continue to face challenges, most
notably in the form of rising costs.
"GoDaddy is determined to support and empower Canadian
entrepreneurs by offering affordable and easy to use tools to help
small businesses get online and grow."
NOTES TO EDITORS
About Venture Forward
Venture Forward is a multi-year research initiative, which
analyses data from over 770,000 Canadian small businesses –
conducted by GoDaddy to quantify the impact of small businesses on
the Canadian economy and their local communities. The analysis is
complemented by a survey of 4,883 Canadian small business owners
conducted in November 2023.
About GoDaddy
GoDaddy helps millions of entrepreneurs globally start, grow,
and scale their businesses. People come to GoDaddy to name their
idea, build a professional website, attract customers, sell their
products and services, and accept payments online and in-person.
GoDaddy's easy-to-use tools help small business owners manage
everything in one place and its expert guides are available to
provide assistance 24/7. To learn more about the company, visit
www.GoDaddy.com.
SOURCE GoDaddy