SMEs Current State, Needs and Challenges Survey Report (BDC Capital)

Summary

• 76% of surveyed Canadian SMEs were profitable in September 2021, versus 73% in May 2021.p.6
• 30% of SMEs plan to request financing over the next 12 months, and 51% of those would seek a working capital loan.p.8
• 66% of SMEs intend to focus on growth projects or market expansion in the next 12 months, up from 50%.p.11
• 49% of SMEs say they lack skilled employees the most, up from 37%, while 34% cite financing, up from 23%.p.12
• 52% of SMEs expect rising costs of doing business as an external obstacle over the next six months, up from 37%.p.13
• 56% of SMEs said they increased or will increase the prices of their products or services.p.15
• Raw material costs (61%) and salaries and wages (59%) are the most cited reasons for price increases.p.17

Key insights

1. Non-profitable SMEs fell to 24% from 27% in May 2021.p.6
2. Among SMEs planning to seek financing, 38% want a term loan and 36% a line of credit.p.8
3. 21% of SMEs seeking financing plan to request equity.p.8
4. 44% of SMEs intend to focus on operational efficiency and supply chain, up from 31%.p.11
5. 32% of SMEs intend to focus on digital transformation and e-commerce, up from 16%.p.11
6. The trimmed average price increase was 13% in Sep 2021, compared with 12% in Jul 2020.p.16
7. 50% of SMEs raising prices cite increased transportation costs.p.17
8. The survey covered 752 respondents, with a maximum margin of error of ± 3.6 percentage points for a probability sample.p.4