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Small- and mid-sized businesses surveyed in May and June by the Business Development Bank of Canada (BDC) expressed cautious optimism about their ability to weather the pandemic, despite the vast majority reporting revenue declines and nearly half reporting layoffs. Priorities for many of the 1,000 SMEs surveyed include restoring their financial health, focusing on remote work and selling online. Here are the key numbers from BDC’s report.
40%: The proportion of SMEs that intend to increase their investments in technology over the next three years. Forty-seven per cent of them said the investments will help them practice physical distancing; 45 per cent said the tech will reduce their costs; and 40 per cent said new technology will improve customer experience. Companies also identified challenges associated with integrating new technology, including employee training, increased debt and little return on investment.
60%: The percentage of entrepreneurs planning to rely on telework as part of their business practice post-pandemic. Thirty-three per cent of respondents said the shift is in keeping with industry trends, while 45 per cent said the policy is a response to employee requests. Meanwhile, 55 per cent believed remote work would have a positive impact on innovation and 52 per cent said it could improve employee productivity.
14%: The proportion of businesses that generated at least half of their sales online pre-COVID-19 and saw revenue increase during the pandemic. By comparison, just eight per cent of companies that generated less than half of their sales online saw revenues increase during the crisis. Thirty per cent of entrepreneurs said they haven’t made a profit on their online sales.
21%: The proportion of small businesses that don’t plan to make changes in response to COVID-19—significantly more than the four per cent of larger SMEs that said they won’t change their plans. BDC attributes the discrepancy in part to the tougher financial position of some of the smallest companies leading up to the pandemic, leaving them few resources to cope with the crisis.
$2 million: The minimum amount of annual sales revenue generated by companies most confident in their ability to weather the pandemic. Other factors include having been in business for at least 10 years, having at least five employees and experiencing growth in the business pre-pandemic.
