UPS Study reports a strong domestic growth for
SMEs while international markets remain untapped
MISSISSAUGA, ON, Oct. 12, 2016 /CNW/ - While 74 per cent
of Canadian small-to-medium sized enterprises (SMEs) are
meeting or exceeding their business goals, many have not yet
reached success on the international scale. In UPS (NYSE: UPS)
Canada's sixth annual Small
Business Challenge survey conducted by Leger, 61 per cent of
Canadian SMEs said exports are the key factor for continued growth
and success to remain competitive in a global market. And while 57
per cent of Canadian SMEs agree their business will benefit from a
low Canadian dollar, only 43 per cent are doing business with other
countries outside of Canada and
the U.S.
"It's encouraging to see Canadian SMEs are thriving
domestically. However, it's important for them to recognize that
continued growth relies heavily on expansion, and international
exports are key contributors to success," said Paul Gaspar, director of small business, UPS
Canada. "Canadian and international governments are focusing on the
easy exchange of international goods. Today, three-quarters of
Canadian SMEs recognize that Canadian Free Trade Agreements create
opportunities within foreign markets by reducing trade barriers.
While, 45 per cent of Canadian SMEs exporting to the U.S. said the
increase in U.S. de minimis from $200 to
$800 has permitted their company to move goods across the
border more efficiently and at a lower cost."
Nearly one quarter of SME executives surveyed in this year's
Small Business Challenges survey said they plan to expand
internationally: 61 per cent are hoping to do business in
Europe, while another 42 per cent
are setting their sights on South and Central America.
"As international exports and e-commerce continue to be
catalysts of growth for Canadian SMEs, a well-planned supply chain
is fundamental for success," said Gordon
Reed, director of customer solutions, UPS Canada. "In fact,
43 per cent of Canadian SMEs not meeting their business goals
identified bottlenecks in their supply chain as a restriction to
their business growth."
More than three-quarters of Canadian SMEs said e-commerce is
essential to the future competitiveness of a business. Today, 76
per cent of Canadian SMEs exporting to consumers in the U.S. and
international markets are more likely to have their website as
their main commerce channel.
Canadian SMEs have an opportunity to grow internationally. Their
products are sought after due to quality, reputation and the low
Canadian dollar; marry this with the continuing rise in e-commerce,
a proper and well planned supply chain is a must to enhance current
processes and offer an optimal customer experience.
Almost all (95 per cent) of Canadian SMEs with a supply chain
strategy are strong believers it will assist with business
expansion into global markets. However, from the Canadian SMEs that
do not have a supply chain strategy in place, 48 per cent said
their business is not large enough to have one. Although every
entrepreneur has a supply chain, they must anticipate and plan for
business growth to eliminate business challenges.
According to the survey, 40 per cent of Canadian SMEs identified
managing their supply chain to ensure a seamless delivery and
coordination of returns as their biggest challenge and one-quarter
of respondents said inventory management.
"On a regular basis, Canadian SMEs should analyze their supply
chain to incorporate shifts in e-commerce, international sales,
enhance business operations, improve customer delivery and identify
areas of improvement," adds Reed.
Additional highlights of the 2016 Small Business
Challenges survey include:
- Of the 74 per cent of SMEs that have met or exceeded their
business goals, one quarter of them attribute this to the low
Canadian dollar, followed by approximately one-fifth of SMEs citing
a boost in e-commerce and expansion to foreign markets
- Of the 39 per cent of Canadian SMEs that currently do not have
a supply chain in place, 9 per cent were unsure of where to find or
how to create a supply chain
- Of the 52 per cent of Canadian SMEs that have a supply chain
strategy, 42 per cent partner with a third party
- Facebook is the second most common e-commerce platform, with 41
per cent of SMEs using the social network for business
UPS Canada celebrates more
than 1 million small and medium-sized enterprises in Canada during Small Business Week taking place
October 16-22, 2016. For more on UPS'
small business solutions, visit ups.com/new/ca
Leger Survey Methodology:
This survey was completed
online from August 5 to August 25,
2016 using Leger's online panel, LegerWeb, with a
sample size of 300 respondents. Individuals working for, or running
a small or medium-sized enterprise (SMEs) spending at least
$5,000 annually on shipping were
interviewed. Only those at or above a director or senior manager
level qualified. A probability sample of the same size would yield
a margin of error of +/- 5.7%, 19 times out of 20.
About UPS:
UPS (NYSE: UPS) is a global leader in logistics, offering a broad
range of solutions including transporting packages and freight;
facilitating international trade, and deploying advanced technology
to more efficiently manage the world of business. Headquartered in
Atlanta, UPS serves more than 220
countries and territories worldwide. The company can be found on
the web at ups.com® and its corporate blog can be found
at longitudes.ups.com. To get UPS news direct,
visit pressroom.ups.com/RSS and follow @UPS_Canada
and @UPS_SmallBizCA.
SOURCE UPS Canada Ltd.