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CDN Small Medium Business (SMB) Outlook

By Edited Nov 18, 2013 0 0

Over the coming 5 years the average annual growth in Small and Medium Sized Businesses will exceed 2%, leading to the creation of 260,000 business in Canada by the Year 2013. For the first time in more than 2 decades SMB activity will be greater than rest of the economy during a period of economic slowdown.
The Canadian economy saw an impressive growth of 33,000 new SMB firms in 2007. Over the coming 5 Years the average annual growth in Small and Medium Sized Businesses will exceed 2%, leading to the creation of 260,000 business in Canada by the Year 2013. Although a slowdown is expected, The CIBC Worldmarkets Small Business Report published in 2008 indicated that in comparison to the overall economy the SMB sector outperformed.

The Canadian manufacturing sector is in recession but reviewing the employment situation reveals an impressive story of 90,000 new jobs created in the first 8 months of 2008. The SMB sector with 100 employees or less created 39% of all new jobs, higher than the 28% a year earlier.

One of the keys cited in the CIBC report is SMB's are well suited to adapt to consumer and market changes than larger businesses, giving them the ability to focus on niche markets and succeed in providing goods and services.

From a marketing perspective there is increasing opportunity in this sector. Demand for marketing services will increase. Not all marketing services but the services which; a) generate a quick measurable return, b) are cost effective, i.e. internet marketing and direct marketing vs. TV and Radio c) deliver results within one month. SMB's companies are careful with costs and expenditures and as a rule did not spend on marketing. Today they have become much more sophisticated and are increasingly using sophisticated web tools to power their business and target prospects.

CIBC sites technology adoption and connectivity is driver producing accelerated growth.Small firms reporting a high level of web connectivity saw their revenues rise twice as fast as those with little or no web connectivity.
Increased connectivity improves and strengthens customer relationships, enhances deivery of value proposition and builds company brand. Only 38% of small firms in Canada have a website and 7% use the internet as a serious tool (I am surprised how low this is, lots of room to grow). Source: CIBC 2008, and http:www.whitecloudmarketing.com 2008
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