Forgot your account information?  |  Create a CME account

One-in-five small business predict they'll begin exporting in 2012

Published by Steve Coleman on January 10, 2012

One in five Canadian SME's say they plan to broaden their horizons, according to a new Angus Reid survey.

The trade study, commissioned by UPS Canada, says 21 per cent of companies plan to look at emerging markets, such as China, India and Mexico over the next year to help support the business they currently do with the United States.

The decision is being fed by the fact 59 per cent of SMEs surveyed say developing countries have an emerging middle class with more money to spend on luxuries - including Canadian goods.

Two-thirds of companies surveyed said they don't believe Canadian exports will remain viable if it's left up to large companies to deliver the goods.

In 2011, Export Development Canada predicted that Canadian exports would increase seven per cent in 2012. Four per cent of SMEs surveyed then said they planned to start exporting in 2012 and 14 per cent expected to sustain the current export practices.

In the longer term, eight per cent planned to start exporting in 2013, while the number fell to five per cent in 2014.

"There's definitely been a positive shift in small businesses' perception of global trade," said Nicolas Dorget, vice-president, UPS Canada. "Hopefully the trend will continue, because the Canadian economy needs more businesses - regardless of size - to be engaged in building the country's international trade presence beyond North America."

While some companies are looking at foreign markets for the goods, 62 per cent asked during the UPS survey said they'd rather get their supplies and partner with Canadian companies, even if the supplies are more expensive.

Half of the companies asked said they plan to keep their business limited to their home province over the next decade.

Angus Reid says the survey was conducted between Oct. 20-25, 2011. The pollster received answers from 552 Canadian small and medium business owners. The margin for error in the survey has been pegged at plus/minus 4.1 per cent.

Found in: news

National Office

Alberta British Columbia
Manitoba New Brunswick
Newfoundland & Labrador Nova Scotia
Ontario Québec
Prince Edward Island Saskatchewan