Three in four plan to implement new strategies to drive growth in coming year
Canadian small businesses are showing resilience in the face of economic uncertainty, with a majority expressing cautious optimism about both their current position and the future, according to a recent report.
Currently, 71% say they are doing great or “okay,” and a further 78% express optimism about the longer-term future of their business amidst a challenging economic landscape, reports CIBC.
Most small business owners or leaders (75%) have ambitions to implement new strategies and spur business growth in the next year. These plans include growth strategies (58%) such as expanding into new markets (including digital), offering new services or products, partnering with other organisations, and capitalising on “buy local” sentiment.
Managing costs (43%) is the second most frequently mentioned type of change, including cutting costs and streamlining operations.
“Canadian small businesses are the backbone of our economy and their resilience in the face of ongoing uncertainty demonstrates remarkable determination, adaptability, and commitment to their ambitions,” says Andrew Antoniadis, Senior Vice-President, Business Banking and Cash Management, CIBC. “By building a strong financial foundation, small businesses are better equipped to navigate short-term challenges, while also achieving long-term successfew.”
Business optimism dropped to 70%, its lowest point since early 2024, as companies brace for ongoing challenges related to costs, labour, and international trade, according to a Statistics Canada (StatCan) report released in May.
Challenges for Canadian business
What are the biggest challenges for companies?
CIBC’s survey of 500 Canadian small business owners and executives notes that the following are the biggest concerns for employers:
- business viability and growth (56%t)
- financial management (55%)
- operational challenges (31%)
Attracting customers, facing increased competition, managing higher costs, cash flow, and the potential for rising interest rates are also among the key issues cited by business leaders.
Looking ahead, 75 per cent plan to implement new strategies to drive growth in the coming year. These include expanding into new or digital markets, introducing new products or services, forming partnerships with other organisations, and capitalising on “buy local” sentiment.
Managing costs is also a priority, with 43% focused on cost-cutting and streamlining operations.
To address the uncertain environment and ongoing trade tensions, small business leaders are prioritising internal risk mitigation strategies such as building cash reserves (26 per cent) and emphasising the Canadian-made aspect of their products and services (25%).
More than half (55%) believe that “buy local” initiatives will benefit their businesses moving forward.
Recently, the Canadian Federation of Independent Business (CFIB) is calling on governments to address the labour quality and mobility issues that small businesses are currently experiencing.
