The latest American Express Global SME Pulse has found the top Canadian small and medium-sized enterprises are thriving, thanks to being nimble, finding alternative financing options and adopting new technologies.iStockphoto
Operating a small business in today’s business climate comes with no shortage of challenges - from confronting countless new technologies to dealing with evolving customer expectations and geo-political changes. But according to the latest American Express Global SME Pulse, Canadian small and medium-sized enterprises were up for the challenge: they not only thrived, but survived in this complex business landscape this year.
Maintaining a strong focus is crucial to business success, and the survey of small and medium-sized businesses across Canada uncovered three key strategies adopted by some of the country’s fastest-growing SMEs. From staying nimble, to looking at alternative financing options and adopting new technologies, read on to find out more about the core strategies from high-growth SMEs so you can stay focused and expand your business in 2019.
Stay nimble in times of change
Success for many Canadian SMEs hinges on their ability to adapt to changing customer demands. According to the survey, 61 per cent of SMEs agree the most important strategy for revenue growth is understanding changing customer demands. An even larger group (66 per cent) believe they are efficient at responding to changes in business when compared with their peers. SMEs, accordingly, are more likely to have a close relationship with their customers in order to better understand and react to their shifting needs.
“Fast-growing SMEs are less likely to work with businesses with inflexible operational structures and policies, as well as those who resist change,” shares Paul Roman, Vice President and General Manager, Global Commercial Services at American Express. “Today more than ever, it’s critical that businesses retain a nimble structure as they grow or they risk losing out on strategic opportunities.”
Challenge the status quo
Simply staying current with trends is no longer enough for SMEs in Canada. As the survey suggests, SMEs are seeking far more innovative approaches to operational aspects of the business, including less traditional methods of financing. While a large majority of SMEs still rely on traditional methods of sourcing capital (82 per cent), only 69 per cent of the fastest-growing SMEs said that was the case for their own companies. The latter businesses rely on flexible access to funds and use more innovative ways to raise capital, such as public equity and financing from other markets.
“Work smarter, not harder, is a philosophy Canadian SMEs work towards when it comes to financing,” Roman continues. “Optimizing cash flow using charge cards can uncover hidden working capital, which can be one of the lowest-cost sources of cash, enabling business owners to secure competitive opportunities that might have once seemed out of reach.”
Embrace emerging technologies
It’s no surprise successful SMEs are harnessing the power of technology to boost revenue growth. According to the survey, applying technology to redesign products and services was ranked second on their list of current strategies for revenue growth, only after understanding customer changes. As well, when looking to the future, 48 per cent of SMEs said adopting technology and tools to collect and analyze customer data would be an essential growth strategy over the next three years. Overall, today’s SMEs are ready to embrace change and innovative technological enhancements in order to keep up with the ever-changing landscape. The overwhelming majority of SMEs (70 per cent) agree that digital technology provides new business opportunities.
SMEs remain receptive to change, are open to adapting new technologies and eager to adopt more innovative approaches to business. American Express, one of the biggest supporters of small and medium businesses across Canada, will continue to provide resources and advice in order to help SMEs achieve all of their goals and grow their businesses.
This content was provided by American Express. The Globe’s editorial department was not involved in its creation.