// INFOGRAPHIC //
Canadian SMEs optimistic
ABOUT GROWTH DESPITE TECHNICAL SKILLS CHALLENGES
PayPal ’ s 2024 Business of Change Report uncovers the growth barriers Canadian small and medium enterprises are facing and the potential opportunities that exist with operating online .
“
WITH OVER 80 % OF ONLINE
SELLERS ENCOUNTERING
GROWTH HURDLES , IT ’ S
IMPERATIVE THAT WE HELP THEM
OVERCOME ROADBLOCKS .
HILE NEARLY HALF ( 47 %)
W of all Canadian online small and medium enterprises ( SMEs ) report their business has not expanded in the last three years , this lack of growth hasn ’ t dampened their optimism . Eighty-two percent of SMEs believe that with the right strategies to overcome barriers , their business has the potential to experience decent growth .
PayPal ’ s 2024 Business of Change Report reveals more than half ( 63 %) of online businesses plan to expand their business online in the next one to two years , but nearly six in ten ( 59 %) feel the lack of technical expertise will limit their business ’ growth . Surveying 500 small business owners across Canada , this report uncovers that although the majority ( 88 %) of online Canadian small business owners agree online sales are key to expanding their business , 66 % say that setting up a business has been harder than they thought .
Barriers to growth
The research delves into the primary barriers Canadian SMEs surveyed perceive as potential hindrances to their short-term growth plans . These include :
• Challenging economic climate ( 42 %)
• Competition in the industry ( 36 %)
• Consumers purchasing less ( 32 %)
It isn ’ t just external factors that business owners feel will limit their ability to expand – they feel a lack of business confidence and skills will hold them back . Almost half ( 48 %) of respondents identify acquisition of new customers as a significant challenge in expanding their online presence , whereas more than a third ( 33 %) face difficulties in boosting customer conversion rates , and a quarter ( 24 %) grapple with cashflow management .
What ’ s more , one in five ( 19 %) say they find it difficult to know which payment methods to offer , such as instalment payment options like buy now , pay later or offering a range of digital wallets that consumers prefer to pay with .
“ With over 80 % of online sellers encountering growth hurdles , it ’ s imperative that we help them overcome roadblocks ,” said Nitin Prabhu , Vice President , Small Business and Financial
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