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.
