Global study of more than 3,200 business
leaders finds SMEs in Canada and
around the world are confident they will thrive in 2017 and
beyond
TORONTO, March 1, 2017
/CNW/ - Canadian Small and Medium-sized Enterprises
(SMEs)1 are shrugging off concerns of economic and
political uncertainty and instead remain confident in their
abilities to innovate, generate revenue, and grow their businesses,
no matter the macro outlook.
SMEs in Canada are feeling
optimistic about the economy, confident about their future business
performance and believe they have the strategies in place to thrive
in an age of uncertainty, according to the American
Express® Global SME Pulse2, a survey that
polled senior executives and decision-makers across SMEs in 15
countries.
"Uncertainty is the status quo; times may change, but as a
trusted advisor and partner to Canadian SMEs, we know the needs,
worries, and aspirations of business owners remain consistent,"
said Paul Roman, Vice President and
General Manager of Global Commercial Payments at American Express
Canada.
"Our research shows SMEs are laser focused on growing their
businesses, and reaching new customers at home and globally. It's
great to see so many looking to invest in innovation and emerging
technologies, but the results make it clear that even the most
enterprising businesses can find it difficult to access the
financing they need."
Revenue growth on tap for 2017
SMEs worldwide remain confident in their ability to deliver
increased revenues and profitability. More than half (55 per cent)
of the Canadian SMEs surveyed expect to see substantial revenue
growth of at least four per cent over the next 12 months, with 50
per cent of them willing to take big risks to gain big rewards. In
fact, 42 per cent believe their company is more likely to be a
disruptor than be disrupted.
Key challenges include economic and political
uncertainty
While SMEs are optimistic about the economy and their own
business (42 per cent positive compared to 12 per cent negative),
they also identify areas for concern. Ranking number one on their
list? Economic uncertainty. In fact, 51 per cent of Canadian SMEs
rank economic uncertainty as their number one threat, followed by
political uncertainty both globally and in Canada. Canadian SMEs also view changes to
domestic policies, laws or regulations as a leading threat to
business performance (21 per cent).
Innovation a must, but confidence is lacking on
implementation
As part of the research, Canadian SMEs agree that digital
technology provides new business opportunities for their companies
(63 per cent). However, only 18 per cent feel confident that they
were very effective in developing and implementing innovations; a
business challenge that 64 per cent of SMEs plan to work hardest to
address over the next three years.
Overall, the top three priorities for SMEs when it comes to
digital innovation include:
- Workforce productivity tools (69 per cent);
- Communications systems (67 per cent); and
- User-friendly and mobile applications (67 per cent).
Canadian SMEs are expanding at home and globally
Despite uncertainty, SMEs globally and in Canada are focusing on growth and expansion
strategies to improve their financial performance. More than half
(51 per cent) agree that it's easier to access new export markets
now than it was three years ago, and 27 per cent said expanding
into new international markets is a key focus. In addition, 41 per
cent of Canadian SMEs say expansion into new domestic market
segments will be a top priority for their business over the next
three years.
Thinking outside the box on finance to fund growth
Many SMEs globally struggle to finance the investment required
for growth. Almost half of Canadian SMEs (48 per cent) say they
face difficulty accessing the finance they need to grow their
business while 53 per cent say that inadequate cash flow affects
their ability to pay suppliers on time. As a result, Canadian SMEs
plan to use less conventional options over the next year when it
comes to sourcing funds for their business including:
- Crowdsourcing (32 per cent);
- Flexible access options such as credit cards (30 per
cent);
- Peer-to-Peer options (30 per cent); and
- Supply chain financing (30 per cent).
About the Research
Oxford Economics carried out a telephone survey among 3,205
owners, executive board members (including Chief Executives,
Chairs, Managing Directors, General Managers) and Chief Financial
Officers / Heads of Finance in SMEs with between 10 and 250
employees and revenues of up to $30
million. The companies were based in 15 countries:
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy,
Japan, Mexico, Singapore, Spain, the UK and USA. The survey interviews were conducted
in October and November
2016.
The research forms the basis of a study into the factors that
drive SME success. The Global SME Pulse: Strategies for
Success in an Uncertain World will be published later this year by
Oxford Economics and examines the operating strengths that enable
SMEs to thrive.
About American Express Global Commercial Payments
Through its Global Commercial Payments division, American
Express offers a suite of payment and lending products that
help businesses and organizations of all sizes gain financial
savings, control and efficiency. Global Commercial Payments
provides solutions for travel and everyday business spending,
cross-border payments, global currency solutions, and business
financing.
To learn more about Global Commercial Payments, please visit
business.americanexpress.com/ca.
About American Express in Canada
American Express in Canada operates as Amex Bank
of Canada and Amex Canada Inc. Both are wholly owned
subsidiaries of the New York-based American Express Travel
Related Services Company, Inc., the largest operating unit of the
American Express Company. Amex Bank of Canada is the
issuer of American Express charge and credit cards, with
outstanding products like The SimplyCash™ Card from American
Express ©, The American Express® Gold Rewards Card, and
the American Express® AeroplanPlus® Gold
Card. American Express opened its first offices
in Toronto and Hamilton in 1853. For more
information, visit AmericanExpress.ca or connect with us at
Facebook.com/AmericanExpressCanada and
YouTube.com/AmericanExpressCAD.
References
______________________________
1 An SME is classified as a business having between
10 and 250 employees and revenues of up to $30 million.
2 A representative
sampling of senior executives and decision-makers from SMEs with
revenues of up to $30 million across
15 countries, carried out in October and November 2016, by Oxford Economics.
SOURCE American Express Canada