SME Current Challenges (BDC Capital)

Summary

• A lack of qualified employees is the primary barrier to achieving business objectives for 41% of Canadian SMEs.p.6
• High economic uncertainty presents a major hurdle for 35% of SMEs, causing 26% of them to cut spending or investments.p.6
• Low cash flow position impacts 31% of SMEs, leading 20% to focus on developing new markets and boosting sales.p.6
• Difficulty obtaining financing is cited as a barrier by 25% of business owners and decision-makers.p.6
• A majority of 63% of SME leaders feel comfortable with their company's current level of debt.p.6
• Most surveyed SMEs (78%) report that their company could take on more debt if necessary.p.6

Key insights

1. Lack of qualified employees is the most prevalent obstacle faced by Canadian SMEs at 41%.p.8
2. To address workforce shortages, 33% of impacted SMEs revised their hiring practices and 19% expanded training programs.p.10
3. In response to high economic uncertainty, 26% of affected SMEs opted to reduce spending or investments.p.14
4. To handle low cash flow, 20% of impacted businesses sought to increase sales while 19% focused on cutting expenses.p.12
5. Among businesses constrained by capacity, 42% took action by adding equipment or hiring additional staff.p.11
6. To overcome financing hurdles, 25% of affected SMEs initiated internal changes to improve their situation.p.13
7. A total of 78% of surveyed SMEs confirm they have capacity to assume additional debt if needed.p.18