SMEs want digital growth but lack technical skills

PayPal's 2024 Business of Change Report says small- to medium-sized enterprises (SMEs) are optimistic about growth despite challenges such as a lack of technical expertise. The report shows that 47 percent of Canadian online small business owners have not expanded in the last three years – with a lack of technical expertise as a leading barrier to growth for more than half (59 percent) of respondents. Most (82 percent) say that with the right strategies to overcome barriers, their business has the potential to experience decent growth.

More than half (63 percent) of online businesses plan to expand their business in the next one to two years, but 59 percent say they lack the technical expertise to do so. The majority of SMEs (88 percent) say that online sales are key to expanding their business.

PayPal’s report shows that digital transformation will be key to SME’s future growth. Seventy percent of small business owners believe it's important to invest in technology and AI skills to adapt to a rapidly changing online environment. In 2024, SMEs say they will be investing in areas such as improving their online and social media sales, with 51 per cent planning to ramp up sales efforts through these channels to foster growth. Other targeted areas for investment include online marketplaces (39 percent), international sales expansion (28 percent), and reinforcing online security and payment methods (17 percent).