Oct. 18, 2022
Focus On Productivity Puts Businesses Ahead
Challenges brought on by the economic context affect small- and medium-sized businesses (SMBs) less when they put productivity at the forefront, says a study from BDC. ‘Inflation, Labour Shortages and Supply Challenges – Embrace Productivity to Thrive in The Current Context’ finds that of businesses that focus on productivity, 28 per cent are facing supply chain problems, compared to 42 per cent among all Canadian businesses. Over a third (39 per cent) of SMBs with a focus on productivity consider inflation a challenge, compared to 61 per cent among all Canadian businesses while 40 per cent are experiencing labour shortages, compared to 58 per cent among all Canadian businesses. To become more productive, the study suggests entrepreneurs measure company performance against peers; optimize processes to eliminate tasks that are a waste of time and money; digitize processes to gain efficiency and automate certain processes – regardless of the sector or industry; and continuously improve products, services, and processes, including staff training. BDC has developed a free online business performance benchmarking tool to help business owners rank their company's sales and profits per employee. With this tool, entrepreneurs can see where they stand against industry peers, find out if they are maximizing revenue and profit, get a detailed report to share with their teams, and get tailored advice based on their results.