Top worries include the value of the Canadian dollar for purchasing business inputs
TORONTO—Canadian small and medium-sized business (SMBs) are optimistic about their future, according to eBay Canada’s first SMB Optimism Index.
Scored out of 100 from very pessimistic to very optimistic, Canadian retail SMBs averaged a 74 on the Index. However, those who export indexed notably higher at 79 points, while non-exporting SMBs are significantly less optimistic at 72 points.
SMBs who export reported an average of nearly 60 percent more in sales than those who don’t. They are also more likely than non-exporters to believe there are new market opportunities for them (70 percent versus 36 percent) and that technologies and innovations will positively impact their business (56 percent versus 41 percent).
“Given the relatively small size of the Canadian market, it stands to reason that business optimism in our country would be linked to exporting,” says Andrea Stairs, managing director, eBay Canada.
Another contributing factor to SMB optimism is the variety of sales channels used by a business. Omni-channel businesses indexed at 77 compared to 72 for single-channel enterprises. Further, omni-channel SMBs that use digital channels scored higher on the Index (77) than those who don’t (73).
As for impediments to optimism, the top worries reported by Canadian SMBs include the value of the Canadian dollar for purchasing business inputs, low margins and tough domestic competition. And, though more than half of SMBs (56 percent) agreed that Canada is a good country in which to run a business, only 38 percent believe the Canadian government makes decisions that help their business.
Additional key findings from the eBay Canada SMB Optimism Index include: