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Present throughout Québec, micro, small and medium-sized enterprises (MSMEs) create the vast majority of jobs in the private sector.
The United Nations General Assembly has designated June 27 as Micro, Small and Medium Enterprises (MSME) Day. Active in all sectors of activity, MSMEs contribute to almost a third of the value of goods exported from Québec.
MSMEs in Québec are made up of the following:
- microbusinesses (between one and four employees) representing 56.3% of MSMEs;
- small businesses (between five and 49 employees) representing 39.2%;
- medium-sized businesses (between 50 and 249 employees) representing 3.9%.
According to the UN, MSMEs represent 90% of all businesses globally and are responsible for 50% of the gross domestic product.
A Grant Thornton report demonstrates the strength of SMEs.
Investing in international growth
In light of the current economic and political volatility, SMEs are particularly well-positioned to seize opportunities and grow on an international level due to their size and flexible structure. According to the latest information in the Grant Thornton report, half (50%) of Canadian SMEs plan to expand their activities in international markets over the next 12 months. This data is in line with the global trend which is at 52%.
This desire for international expansion reflects the market’s ambitions.
These companies are in a unique position when it comes to international business. Indeed, the International Monetary Fund (IMF) anticipates an international business recovery in 2024 and 2025. As a result, SMEs have high expectations with regard to their potential growth opportunities abroad.
This appetite for international expansion shows that, despite geopolitical and economic uncertainty, mid-sized companies still view international business as a key driver of future growth. Business leaders know that expansion may involve acquiring new clients, cutting costs, increasing efficiency, exploring different talent pools and recruiting international skilled workers, but they know that seeking new markets will help them to not only develop their company, but also to diversify the risks related to supply and demand.
Investing in innovation
Canadian SMEs realize that they must innovate in order to stay one step ahead of the competition. Ongoing investment in technology, research and development is essential to maintaining a competitive advantage in new markets in particular. Here are the four primary elements that Canadian SMEs intend to concentrate on (over the coming year):
- 34% would like to expand their pool of customers (vs. 35% worldwide);
- 29% hope to improve their profitability and reduce their costs (vs. 24% worldwide);
- 29% would like to enhance quality (vs. 37% worldwide, which is also the biggest trend observed);
- 28% are aiming for both increased visibility and enhanced brand reputation (vs. 33% worldwide).
Businesses are also using their investments in technology to retain and attract qualified talent.
Let’s continue to drive local businesses forward
It’s worth mentioning that 87% of Canadian SMEs reported that they’re in a position to cope with unforeseen circumstances, compared to 92% worldwide. This demonstrates the strength and resilience of SMEs.
Raymond Chabot Grant Thornton has proudly supported local business managers and leaders for more than 75 years. We support this MSMEs Day in order to raise public awareness of the tremendous contributions of these companies.