Canadian small and medium-sized businesses (SMBs) are confident in their success. However, a recent report found they are still concerned about rising costs.
Business management solutions provider Sage recently published its annual global survey of entrepreneurs and their long-term outlook for the future. The new study involved roughly 12,000 business leaders, with 1,200 Canadian participants.
Sage and advisory company Strand Partners teamed up to perform the study in February 2023. Participants included business leaders from the following countries:
- South Africa.
- The UK.
- The US.
“Small Business, Big Opportunity”
According to the survey entitled “Small Business, Big Opportunity,” 50 percent of Canadian business leaders reported a boost in revenue. Moreover, 24 percent of the survey participants experienced more than 10 percent growth.
This revenue increase inspired confidence among Canadian entrepreneurs. The number of business leaders who are confident in their company grew from last year’s 63 percent to 72 percent.
Aside from the revenue boost, the increased customer base also contributed to the positive outlook of Canadian business owners. Other contributors include the following:
- Staff quality.
- Adoption of new technology.
- Efficient workflow.
Consequently, 50 percent of the business leaders said they want to increase their investment in technology, while 42 percent plan to hire more people.
Challenges For SMBs
Despite the increased confidence, 75 percent of Canadian SMBs are still concerned about rising costs. SMBs in the country experience rising salaries, office expenses, and marketing costs.
Aside from increased costs, Canadian entrepreneurs are also concerned about talent shortage. Only 17 percent of participants from Ontario and 19 percent from Quebec said they were very satisfied with their staffing levels.
Mark Hickman, managing director of Sage in Canada , said the government and business leaders share a responsibility to support small and medium-sized firms. He highlighted the importance of empowering SMBs to secure the right people and the solutions to drive productivity and growth.
Addressing Rising Costs
Canadian SMBs aim to boost efficiency and cut costs to overcome their challenges. According to the survey, 38 percent of the participants said cutting costs helped their business.
The adoption of technology also helped SMBs to adapt and boost productivity. The survey showed that 53 percent of Canadian entrepreneurs use innovative technologies to save time on crucial processes.
Despite these actions, SMB leaders still call for government support to address their pains. Thirty-six percent of Canadian business owners cited tax relief as a preferred solution.
Saving money on taxes can be an effective way to cut costs, especially for small businesses. Fortunately for business owners in the country, there are many ways to save on tax costs.
Moreover, there are certain expenses they can deduct come tax time, including the following:
- Business start-up expenses.
- Salaries, wages, and benefits.
- Office expenses.
- Property taxes.
- Telephone costs and utilities.
Closely monitoring finances is also necessary for entrepreneurs who want to save on taxes. Canadian SMB owners can hire accountants or other financial experts to do this task.
Businesses needing accountants can seek help from accountants at Faris CPA. The company provides expert tax guidance and other crucial accounting services to help organizations avoid undue taxes and penalties.
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