According to Statistics Canada, there were more than 2.3 million small businesses and 2.5 million self-employed Canadians in 2006. UPS recognizes that small businesses play a vital role in the health of the Canadian economy and commissioned the UPS Business MonitorSM Canada to ask Canadian business owners what their outlook is on the future of the economy, future growth for their business, employment issues and other topics.
Conducted by TNS Canadian Facts research group in spring 2007, the survey results showed Canadian small to medium-sized businesses (SMBs) are hesitant to enter the global market. More than a third believed they had enough business in Canada alone, while just under a fifth said they felt they should grow their business domestically before looking to enter the global arena. Only a mere three percent intended to expand internationally.
“This is disconcerting when one considers that SMBs make up 98 percent of Canadian businesses,”said Mike Tierney, President of UPS Canada. “Canada runs the risk of being left behind in the increasingly competitive global market unless there is a shift in the practices of our entrepreneurs to capitalize on the international trade opportunities available to them.”
Business owners identified a number of reasons they were hesitant to expand internationally. Finding suppliers and distributors they could trust was at the top of the list, followed by complex trade barriers and tax structures. However, the study found that companies conducting business internationally are expected to grow at a faster rate than those operating exclusively within Canada.
Despite a reluctance to enter the international market, most Canadian entrepreneurs anticipate significant growth for the Canadian economy and view globalization positively. Only 15 percent of entrepreneurs surveyed viewed globalization negatively, while more than a third considered it to be a positive step. To view the entire UPS Business Monitor, visit www.ups.com/cbm.
Expanding beyond Canadian borders will be the key to success for many small businesses, and finding the right business partners will be a cornerstone in their strategy. UPS has developed products and services designed specifically for businesses working internationally. UPS prides itself on being a trusted and reliable partner for small and medium-sized businesses and offers shipping and customs solutions that make global shipping easier.