Small Business Shows Resilience

Canadian small and medium enterprises (SMEs) have shown incredible resilience throughout the pandemic, adopting new strategies to adapt to the changing business climate, says an American Express Canada survey. While the survey reveals 74 per cent of SMEs are feeling confident when looking at the future of their business in the next one to three years, challenges related to cash flow, supplier payments, and time management persist as businesses continue on their journeys towards rebuilding. At the onset of the COVID-19 pandemic, many SMEs took immediate action to adjust their business models in order to stay afloat. The survey revealed 37 per cent of SMEs reduced operating costs and 21 per cent say they will continue to implement cost saving programs while 15 per cent will modernize processes through technology. Despite these initiatives, challenges related to cash flow and supplier payments continue to present pressing challenges for Canadian SMEs. In fact, among those surveyed, 64 per cent say they are facing cash flow problems as a direct result of the pandemic and just over half (51 per cent) agree that these problems present the most immediate threat to their business. Overall, the research demonstrated nearly one in four say they do not have enough cash flow to sustain their business.