Tools businesses are adding to help bottom lines

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More businesses are adding to their digital capabilities, which are boosting their operations and increasing revenue, a new survey has found.

Scotiabank’s fourth annual Path to Impact Report noted that 18 per cent of Canadian small business owners reported accelerating their digital options — be they customer-facing or internal — over the past year in response to heightened demand. In turn, they’re seeing enhanced revenue.

The report noted that 41 per cent have integrated virtual meeting tools, 36 per cent have harnessed robotics to optimize operations, 35 per cent adopted cloud-based data platforms and 30 per cent introduced contactless payment methods.

Looking ahead, small businesses identified artificial intelligence technology (44 per cent) and improved financial advice access (43 per cent) as pivotal tools for sustainable growth.

A generational divide was evident in financial strategies. Younger business owners (aged 18-34) anticipated a greater need for financing, standing at 63 per cent, compared to their older counterparts over 55 years at 21 per cent.

Over two years, 90 per cent of small business owners have sought advice or support. Notably, reliance on banks’ digital resources for guidance has seen an uptick, with 30 per cent utilizing them this year, up from 24 per cent in the previous year.

The report further found that two-thirds of small business owners expressed being either “extremely” or “very” optimistic about their enterprise’s future prospects. Indeed, 50 per cent claim they are faring better now than they did during the pandemic’s peak two years ago.

However, the path forward isn’t without its hurdles, respondents noted. More than half (55 per cent) reported grappling with rising costs, attributable to inflationary pressures or escalating interest rates, marking an increase from the 48 per cent who voiced this concern last year.

Moreover, business owners highlighted a trio of additional challenges: Supply shortages were flagged by 24 per cent of respondents, while 23 per cent pointed to both the pressures of meeting high demand and difficulties in hiring staff.