bdc viewpoints study internationalization / entrepreneurial profile · 2016-07-11 · 6...

BDC ViewPoints study Internationalization / entrepreneurial profile

May 2011

Market Intelligence (Marketing) at BDC

2 Internationalization / entrepreneurial

challenges – May 2011


Executive summary:

Internationalization profile

International

activities: 56%

Exporting: 28% Importing: 33% Foreign alliances and

partnerships: 21%

Direct investment

outside Canada: 7%

No international

activities: 44%

Particularly among

wholesalers (76%),

manufacturers (51%) and

retailers (39%)

Particularly among wholesalers

(91%) and in Ontario (63%)

Particularly among

manufacturers (49%)

larger businesses (46%),

and in Quebec (35%)

Particularly among

wholesalers (43%)

The main reason

these entrepreneurs

are not active at the

international level is

that they feel such

initiatives are not

applicable to their

current business

model

That said, a majority

believe that

international activities

could be beneficial to

their business

On average, exports

generate 30% of total

revenues

Imports represent 28%

of total expenses, on

average

Are part of a global supply chain: 39% (as either a purchaser [22%] and/or supplier [23%])

Believe that increasing their international activities would be beneficial to their business: 80%

The United States (84%), Asia (35%) and Western

Europe (33%) remain the hot spots for international

activity among Canadian entrepreneurs




Executive summary:

Business needs

Already active at the international level Not active at the international level yet

41% of them already have people on their team with foreign

experience

86% of them have people on their team with foreign

experience (mostly top management)

Entrepreneurs who believe that starting or increasing

international activity would be beneficial to their business

A minority (35%) intend to explore the feasibility of increasing

their international efforts internally; a similar proportion (36%) do

not yet know what they intend to do. A quarter would like to get

advice for free and only 12% would pay to get advice.

Most (67%) intend to explore the feasibility of increasing their

international efforts internally. About one in six (16%) would like

to get external advice for free, and one in ten (10%) would be

willing to pay for external consulting services.

Top three aspects entrepreneurs need advice about:

1) Finding reliable partners (73%)

2) Identifying good business opportunities outside Canada (68%)

3) Obtaining financing (67%)




Hiring Targets for Next 12 Months

10 or more employees (7%)

Five to nine employees (7%)

Three or four employees (17%)

One or two employees (51%)

None (18%)

Top Strategies

Develop new products or services (46%)

Purchase equipment (31%)

Increase the number of employees or training (30%)

Increase production (29%)

Create a marketing plan (26%)

Target Growth for Next Fiscal Year

Less than 0% (2%)

Between 0% and 4.9% (16%)

Between 5% and 9.9% (27%)

Between 10% and 14.9% (19%)

Between 15% and 19.9% (12%)

20% or more (25%)

Top Challenges

Carrying out sales and marketing initiatives (40%)

Managing finances and cash flows (39%)

Obtaining financing (38%)

Handling time constraints on owner (37%)

Dealing with reduced profit margins (34%)

Executive summary:

Entrepreneurial environment

Organizational Structure

The company has an official management structure

(68%)

The company has an advisory board (22%)

Entrepreneurial View

I constantly develop new products or services (53%)

I develop new products or services only

when necessary (occasionally) (25%)

I am comfortable with selling just one or a few products or

services, and improving them so that they sell well (23%)




Context and methodology




Context and methodology

> In the context of the current economic recovery, many Canadian firms could benefit from activities outside their natural

geographic borders. BDC is interested in helping Canadian entrepreneurs develop internationalization projects that consist

of four different initiatives in foreign markets:

– importing

– exporting

– alliances and partnerships

– foreign direct investment

> By getting a better understanding of where Canadian businesses stand, BDC hopes to better help entrepreneurs reach their

goals.

> The second part of this report deals with challenges, strategies, organizational structure and entrepreneurial attitudes

toward growth.

> BDC e-mailed 2,063 invitations to complete the survey to members of the BDC ViewPoints panel, as at April 26, 2011. The

survey was available online between April 26 and May 12. A total of 574 entrepreneurs completed the survey, for a

completion rate of 28%.

> The responses from entrepreneurs were weighted according to region and company size to obtain results

representative of the Canadian small and medium enterprise (SME) population. The BDC Market Intelligence team analyzed

the final results.




Detailed results




Internationalization of Canadian SMEs




International initiatives

Over half of the entrepreneurs surveyed claimed to be active at the international level*

> Overall, 56% of respondents claimed that at least one of the

international activities mentioned are part of their current business

activities.

– A statistically greater percentage of wholesalers (91%) and

respondents from Ontario (63%) said that they either import, export,

have partnerships in foreign markets or invest in foreign markets, or

carry out a combination of these activities.

> One third of entrepreneurs (33%) currently import certain products

or services.

– This is the case for a statistically greater proportion of wholesalers

(76%), manufacturers (51%) and retailers with fewer than 20

employees (39%).

> Just over one quarter of respondents (28%) said they export.

– This ratio climbs to 49% among manufacturers, 46% among

businesses with 50 or more employees, and 35% among

respondents from Quebec.

> One in five respondents (21%) mentioned that they have foreign

alliances or partnerships.

– It is no surprise to see that a greater percentage of wholesalers

(43%) had such alliances.

> Very few companies currently have foreign direct investments (7%).

33%

28%

21%

7%

44%

Importing

Exporting

Foreign alliances and partnerships

Direct investment outside Canada

None of the above

What internationalization initiatives have you already

included in your company’s operations?

Multiple answers allowed. (n=574)

Base: All respondents. Multiple mentions allowed; therefore, total exceeds 100%.

*This proportion seems slightly high. It could be explained by three

factors: 1) the topic of the survey was mentioned in the invitation,

so those who did not feel involved may have decided not to

respond; 2) in this survey, the proportion of manufacturers is

higher than usual as, by definition, they are more active than most

other sectors at the international level; and 3) we included

importing in our definition of internationalization, whereas statistics

often present activities related primarily to exporting.




Reasons for lack of international

initiatives

The main reason entrepreneurs are not active at the

international level is that they feel such initiatives are not

applicable to their current business model

> Over half of respondents (52%) said the four international initiatives

previously mentioned are not applicable to their business model.

> Just over one quarter of entrepreneurs (27%) said that the size of

their company does not warrant pursuing international initiatives.

– Unsurprisingly, this tends to be especially true among smaller

businesses—those that employ fewer than five workers (35%).

> Slightly over one in ten businesses (11%) have not yet found the

resources to help them start these kinds of initiatives.

> Financing is an issue for 9% of respondents; one in ten

entrepreneurs (9%) perceive these international initiatives as being

too complicated; and a similar percentage (8%) are content with

their current market and do not want to change anything.

> Among other reasons for avoiding international initiatives, several

entrepreneurs mentioned having time constraints, a few said they did

not want to overstretch their resources, and others said that licensing

and regulations made international initiatives prohibitive. However,

several entrepreneurs claimed they are considering undertaking

some of these international initiatives in the near future.

52%

27%

11%

9%

9%

8%

7%

2%

Not applicable to our businessmodel

The size of my company does notwarrant it

I have not found resources to helpme start these kinds of initiatives

I have not found financing to startthese kinds of initiatives

I think it is all too complicated

I am happy with our current market,I do not want to change anything

Other

I don't know / Prefer not to answer

What is/are the reason(s) you have not included any

internationalization initiatives in your company’s operations

to date? Multiple answers allowed. (n=245)

Base: Entrepreneurs who do not currently have any international activities.

Multiple mentions allowed; therefore, total exceeds 100%.




Could benefit from international activities

Nearly three out of five entrepreneurs claim that international

activities could be beneficial to their business

> Of entrepreneurs who are not currently active at the international level

but who could carry out the initiatives, 58% said that pursuing

international efforts could be beneficial.

> One in four respondents (26%) mentioned that, in their opinion, these

kinds of international initiatives would not be beneficial to them.

> Finally, 16% of respondents said they did not know if such initiatives

would have a positive impact or simply preferred not to answer.

Yes, 58%

No, 26%

I don't know /

Prefer not to answer,

16%

Do you think your company could benefit from

internationalization, i.e., importing, exporting, creating

alliances or investing outside Canada?

(n=108)

Base: Entrepreneurs who do not currently have any international activities but

for whom international activities could be applicable




Imports and exports

On average, respondents who currently import claimed that import expenses represent 28% of their total expenses

> Although import expenses represent, on average, 28% of total expenses, the majority of respondents (38%) said that they account for

10% or less of combined expenses.

> In sum, import expenses account for 30% of expenses or less in two thirds of the cases (67%).

Respondents who currently export asserted that their exporting activities generate, on average, 30% of their total revenues

> For over half of those surveyed (54%), exports account for 20% or less of total revenue.

38%

14%

15%

10%

6%

6%

13%

1% - 10%

11% - 20%

21% - 30%

31% - 40%

41% - 50%

51% - 60%

More than 60%

What percentage of your company’s expenses (all expenses

combined) does importing products or services account

for? Enter a number between 1 and 100. (n=195)

Base: Entrepreneurs who currently import.

54%

16%

7%

8%

14%

1% - 20%

21% - 40%

41% - 60%

61% - 80%

81% - 100%

Base: Entrepreneurs who currently export.

What percentage of your company’s revenues and sales (all

revenues and sales combined) comes from exporting?

Enter a number between 1 and 100. (n=180)




Global supply chain

Two out of five respondents who are active at the

international level said their company is part of a global

supply chain

> Nearly one quarter of entrepreneurs surveyed (23%) confirmed that

their company is part of a global supply chain as a supplier.

> A nearly identical proportion (22%) are part of a global supply chain

as a customer or purchaser.

> In sum, 39% of respondents are part of a global supply chain

(some are both suppliers and customers).

> Conversely, three out of five entrepreneurs (59%) said they are not

involved in a global supply chain.

– This ratio increases to 75% among respondents from Quebec.

23%

22%

59%

2%

Yes, we are part of a globalsupply chain as a supplier

Yes, we are part of a globalsupply chain as a customer /

purchaser

No, we are not part of a globalsupply chain

I don’t know / Prefer not to answer

Is your company part of a global supply chain?

In other words, are you a supplier or purchaser of products or

services that are part of a process involving a number of

companies, at least one of which is located outside Canada?

(n=329)

Base: Entrepreneurs who are active in at least one international activity.




Increased international initiatives

A great majority of entrepreneurs currently active at the

international level claimed that increasing their initiatives

would be beneficial to their business

> Most entrepreneurs (80%) already active on the international stage

claimed that increasing their international initiatives would be

beneficial to their company.

> Interestingly, one in ten respondents (11%) do not think that pursuing

further international initiatives would positively affect their business.

> One in ten entrepreneurs (9%) said they are not sure whether

increasing international initiatives would be beneficial or simply

preferred not to answer.

Do you think that increasing your internationalization efforts

would benefit your company?

(n=329)


Yes, 80%

No, 11%

I don't know /

Prefer not to answer,

9%




57%

42%

30%

9%

4%

Foreign alliances andpartnerships

Exporting

Importing

Direct investment outsideCanada

I don't know / Prefer not toanswer

Increasing internationalization initiatives

Regardless of whether or not entrepreneurs are active at the international level, making foreign alliances or partnerships is perceived to be the most beneficial initiative

> Overall, nearly three out of five respondents (57%) claimed that

making foreign alliances and partnerships would be among the two

most beneficial initiatives they could pursue.

> Two out of five entrepreneurs (42%) said exporting would be

beneficial.

– Exporting was mentioned by a statistically greater proportion of

manufacturers (72%) and respondents from Quebec (59%).

> Importing would be an avenue to further develop, according to 30%

of respondents.

– A significantly greater percentage of entrepreneurs already active at

the international level (33%) believe this.

> One in ten entrepreneurs (9%) said that foreign direct investment

would likely yield positive results.

> When asked to evaluate their desire and determination to increase

their internationalization efforts, 44% of entrepreneurs currently

active on the international scene or for whom international initiatives

would be relevant said they are determined to do so.

– Generally speaking, desire and determination tend to be greater

among entrepreneurs already active at the international level.

– Compared with other respondents, a significantly higher percentage of

entrepreneurs in Quebec (60%) said they are determined to pursue

international opportunities.

Of the following four internationalization initiatives, which

are or would be the most beneficial for your company?

Up to two answers allowed. (n=394)

Base: Entrepreneurs.

44%

25%

29%

2%

Determined (7 - 10)

Hesitant (5 - 6)

Not very determined (1 - 4)

Don't know / Prefer not toanswer

On a scale of 1 to 10, where 1 means not at all and 10 means

very much, how much do you want and are determined to

increase your internationalization efforts in the next 24

months? (n=394)

Base: Entrepreneurs who are active at the international level or for whom that would

be possible. When multiple mentions were allowed, total exceeds 100%.




Most beneficial regions of the world

The United States, Asia and Western Europe remain the hot spots for international activities among Canadian

entrepreneurs

> As Canada’s most important economic trading partner, the United States remains the destination of choice for international initiatives.

Overall, 84% of respondents would focus their energy on our southern neighbour.

> A lot has been said and written about expanding in Asia and Western Europe. It seems that one third of respondents would agree and

believe that these two regions are fertile for international development.

> All other regions were selected by one in five respondents or fewer.

> There are a few statistical differences worth noting:

– A significantly greater percentage of entrepreneurs from Quebec would channel some of their initiatives toward Eastern Europe (26%).

– A greater proportion of companies with between 20 and 49 employees said that South America (36%) and North Africa (13%) offer

interesting opportunities.

Which regions are or would be particularly good for your internationalization initiatives, all initiatives combined (importing, exporting,

alliances or investment)? You can select as many answers as you wish. (n=394)

AMERICA

United States: 84%

Mexico: 19%

Central America: 11%

South America: 21%

Caribbean: 13%

EUROPE

Western Europe: 33%

Eastern Europe: 14%

Scandinavia: 13%

AFRICA

North Africa: 4%

Central Africa: 5%

South Africa: 5%

Middle East: 12%

ASIA: 35%

OCEANIA: 15%

DON’T KNOW / PREFER NOT TO ANSWER: 2%

Base: Entrepreneurs who are active at the international level or for whom it would be possible. Multiple mentions allowed; therefore, total exceeds 100%.




International readiness

Among the nine important attributes for successful internationalization, entrepreneurs rated themselves more favourably in terms of confidence, innovation and engagement

> Generally speaking, entrepreneurs currently active on the international scene tend to give their company higher rates compared

with those who wish or plan to expand internationally.

> Entrepreneurs are usually quite optimistic. Their confidence regarding the successful outcome of their international initiatives scores

the highest among all attributes measured (average score of 6.6 out of 10; 57% allocated a score of 7 or more to this attribute).

> Over half of entrepreneurs (53%) surveyed allocated a score of 7 or more when assessing their company in terms of innovation.

> Engagement completes the top three attributes in the self-assessment (average score of 6.6 out of 10).

> Entrepreneurs seem to acknowledge there is room for improvement in terms of their competitiveness (6.5 out of 10), their business plan

(6.2 out of 10) and their knowledge of the regions targeted by internationalization efforts (6.2 out of 10).

Base: Entrepreneurs who are active at the international level or for whom it would be possible.

The following aspects are necessary for a successful internationalization initiative.

How would you rate your company on these aspects on a scale of 1 to 10? (n=394)

Average

score % of 7 - 10 % of 5 - 6 % of 1 - 4 Don’t know

Confidence: degree of optimism about the success of the

initiative 6.6 / 10 57% 22% 17% 4%

Innovation: the company emphasizes innovation every day,

develops innovative products / services, etc. 6.6 / 10 53% 23% 19% 5%

Engagement: on the part of the management team and

employees involved 6.6 / 10 52% 22% 19% 7%

Competitiveness: large market shares, good reputation,

unique product, etc. 6.5 / 10 53% 20% 19% 8%

Business plan: internationalization is a good fit with the

company’s plans 6.2 / 10 47% 23% 23% 6%

Knowledge of the regions targeted by internationalization:

team members’ knowledge, previous experience, etc. 6.2 / 10 49% 20% 26% 5%




International readiness (cont’d)

Entrepreneurs scored themselves less favourably in terms of having a solid network and finances, as well as having the critical mass to respond to additional needs

> Although international entrepreneurs have more experience and evaluated their company more favourably than those who could benefit

from expanding internationally, both entrepreneurial segments realize that they can improve greatly.

> The three last attributes measured are key components of successful internationalization initiatives. Furthermore, strong positioning on

those attributes can generate future momentum. Significantly improving those attributes can catalyze future endeavours.

The following aspects are necessary for a successful internationalization initiative.

How would you rate your company on these aspects on a scale of 1 to 10? (n=394)

Average

score % of 7 - 10 % of 5 - 6 % of 1 - 4 Don’t know

Network strength (strength and usefulness of the different

members of the company’s business network, both inside

and outside the company’s current borders)

5.7 / 10 38% 19% 32% 11%

Financial strength of the company (financial health, debt-

to-assets ratio, etc.) 5.3 / 10 31% 23% 38% 8%

Critical mass (financial, operational and human capacity to

meet additional needs) 4.8 / 10 27% 21% 44% 8%

Base: Entrepreneurs who are active at the international level or for whom it would be possible.




International experience

Most entrepreneurs who are already active at the international

level have at least one member of their team with pertinent

experience; this proportion is significantly lower among those

who are willing to develop international initiatives but haven’t

started yet

> For the most part, international experience resides in the

executive suite (top management).

– In larger companies, we see that a significant proportion of key

managers and employees have foreign experience.

> Overall, 86% of companies active at the international level have

people in their fold with foreign experience.

> This percentage falls to 41% among entrepreneurs willing to

develop international activities.

66%

25%

18%

20%

2%

One or several members ofthe executive suite (owner,

partners, etc.) has thatexperience

One or more of the company’s key managers has that

experience

One or more of theemployees has that

experience

We do not have anyone in thecompany with that kind of

experience

I don’t know / Prefer not to answer

Which of the following team members in your company have

any internationalization experience or foreign experience?


Base: Entrepreneurs who are active at the international level or for whom it

would be applicable.




Exploring internationalization initiatives

Most entrepreneurs interested in increasing their

internationalization efforts intend to do so internally

> When asked how they intend to explore the feasibility of increasing

their internationalization efforts, three out of five entrepreneurs (60%)

asserted they will explore different avenues internally in the near

future.

– This relatively high percentage is driven by respondents currently

active internationally (67% vs. 35% of those looking to develop an

international presence). This difference makes sense, since those

who are already active at the international level have people in their

team with pertinent experience to work on that project.

> Nearly one in five respondents (18%) will be looking for free external

help.

> A small percentage of entrepreneurs (10%) said they are not only

looking for outside help but that they also plan to pay for this

assistance.

> One in five entrepreneurs (20%) do not yet know how they intend to

explore the feasibility of expanding internationally.

– This is the case for a statistically greater percentage of entrepreneurs

not currently active internationally (36%).

> Finally, one in ten respondents (9%) are at a standstill and do not plan

on doing anything for the moment.

60%

18%

10%

20%

9%

We intend to explore differentavenues internally in the near

future

We intend to seek the help ofan outside consultant whose

services are free

We intend to seek the help ofan outside consultant whom

we will pay

We do not yet know

We do not intend to doanything for the moment

You previously indicated that your company would benefit

from increasing your internationalization efforts. What do

you intend to do to explore the feasibility of such efforts?


Base: Entrepreneurs who said that their company could benefit from increasing

internationalization efforts.




Aspects for which advice would be required

The most sought-after types of advice pertain to finding

reliable partners, identifying good business opportunities and

obtaining financing

> The top three types of advice are quite fundamental and are critical

to the overall success of internationalization efforts.

> The key to many initiatives is the strength and quality of people

involved. It is therefore not a surprise that many entrepreneurs said

that the main aspect they would need help with is finding reliable

partners (73%).

> The next most desired types of advice relate to identifying good

business opportunities outside Canada (68%) and obtaining the

financing to pursue such endeavours (67%).

> The next most popular kinds of advice deal with more technical or

specific aspects of internationalization. Nearly half of those surveyed

mentioned overcoming obstacles related to trade and regulations

(48%), obtaining tax credits (48%), and protecting intellectual property

(43%).

> The last sorts of advice sought deal with more operational functions of

internationalization. One third of respondents want assistance in

managing the relationship with all the contributors in a supply chain

(34%), and an equivalent proportion want help managing

authentication and security requirements (33%). Nearly one in four

respondents want additional insight into meeting quality control or

process requirements in a supply chain.

73%

68%

67%

48%

48%

43%

34%

33%

23%

3%

2%

Finding reliable partners

Identifying good businessopportunities outside Canada

Obtaining financing

Overcoming obstacles related to tradeand regulations in place

Obtaining tax credits

Protecting intellectual property rights

Managing the relationships with all ofthe contributors in a supply chain

Managing authentication and securityrequirements

Meeting quality control / processrequirements in a supply chain

I don't know / Prefer not to answer

Other

Which aspects would you need advice about?


Base: Entrepreneurs who intend to seek the help of outside consultants.




Entrepreneurial environment




Main challenges

In a period of economic recovery, entrepreneurs are

challenged by sales and marketing initiatives, as well as their

company’s finances

> The main challenge entrepreneurs identified is sales and

marketing (40%). The fact of the matter remains that if there are no

sales, there is no business! Given the current economic context, it is

not surprising that entrepreneurs said that sales and marketing is their

primary challenge.

– This is the case for a statistically greater percentage of entrepreneurs

active at the international level (44%).

> In a precarious economic environment, it is of the utmost importance

to manage company finances carefully. In fact, managing company

finances and cash flows is a challenge for two out of five

entrepreneurs (39%).

> Furthermore, a significant percentage of respondents said that

obtaining financing in the next 12 months is an aspect they will need

to address (38%).

– This is the case for a significant number of entrepreneurs active at

the international level (46%).

> In terms of operations, over one third of entrepreneurs have issues

with time constraints (37%) and reduced profit margins (34%).

– Reduced profit margins are a challenge for half of the companies

(50%) with 50 employees or more.

> Over one in five entrepreneurs identified a series of challenges that

can be grouped in four broad categories: human resources (HR);

information and communications technology (ICT); operations; and

sales and marketing.

40%

39%

38%

37%

34%

27%

25%

24%

22%

22%

21%

20%

20%

20%

Sales and marketing initiatives

Managing finances and cash flows

Obtaining financing

Time constraints as the owner of myown business

Reduced profit margins

Human resources (HR): recruitmentand employee retention

Information and communicationstechnology (ICT): website / online…

Domestic competition

Productivity

Increase in the price of raw materials /other expenses

Fluctuations in fuel costs

Currency fluctuations

Controlling the company’s growth

Development of foreign markets:finding export opportunities

What are the main challenges you expect to face in the next

12 months? Multiple answers allowed. (n=574)

Base: All respondents.




Main challenges (cont’d)

All other challenges mentioned apply to fewer than one in five

entrepreneurs

> The remainder of the challenges are more niche in nature and tend to

apply to a smaller percentage of businesses.

> Generally speaking, larger businesses and entrepreneurs active at

the international level face a greater number of challenges.

> Finally, there are a few other statistical differences worth noting:

– A statistically greater percentage of entrepreneurs from Quebec

mentioned that they expect to face the following challenges in the

upcoming year:

• controlling the company’s growth (32%)

• finding export opportunities (32%)

• developing products through R&D (20%)

• dealing with foreign competition (20%)

– A significant number of entrepreneurs in Ontario (20%) also

mentioned R&D.

– The main challenge identified by respondents in Atlantic Canada is

fluctuations in fuel costs (47%).

– A significant number of manufacturers face challenges pertaining to

the increase in the price of raw materials (39%) and finding export

opportunities (37%).

19%

19%

18%

15%

14%

13%

12%

12%

12%

11%

8%

7%

6%

5%

4%

3%

HR: training and development

Succession planning / finding buyersfor my business

Setting prices (products and services)

R&D: product development

Managing inventory and reassessingthe amount of inventory

Foreign competition

Technology

Distribution network

Development of foreign markets:increasing my foreign market share

ICT: increasing the return on thecurrent investment

Obtaining certification

ICT: business process automation

ICT: finding experts

How to become an exporter

ICT: continuity of activities, datamanagement and security

No challenges

What are the main challenges you expect to face in the next

12 months? Multiple answers allowed. (n=574)





Main strategies

The strategies envisioned for the upcoming year focus mainly

on production and strategic development

> More than two out of five entrepreneurs (46%) plan on developing

new products or services in the next 12 months.

– This percentage climbs to 53% among entrepreneurs active at the

international level.

> The current strength of the Canadian dollar makes this an ideal time

for entrepreneurs to purchase imported equipment. In fact, nearly one

third of entrepreneurs plan on purchasing equipment (31%) in the

coming year and 29% plan on increasing production.

– Both these tactics were mentioned by a greater percentage of

manufacturers (50% combined).

> From a strategic perspective, one in four entrepreneurs (26%) plan on

creating a marketing plan, and a nearly identical proportion (24%)

want to develop foreign markets.

– Developing foreign markets was mentioned by a statistically greater

percentage of businesses with 50 employees or more (42%),

entrepreneurs currently active on the international scene (38%) and

respondents from Quebec (36%).

> Entrepreneurs active at the international level tend to plan for

more strategies in the coming year.

> Compared with entrepreneurs with no international activities, entrepreneurs

active at the international level are more likely to plan on developing new

products or services (53%), developing foreign markets (38%), investing in

R&D (23%), investing in ICT to create or improve a website or intranet

(20%), doing a merger / acquisition analysis (14%), relocating the business

(11%), and obtaining certification (11%).

46%

31%

30%

29%

26%

24%

16%

15%

15%

13%

11%

11%

Develop new products / services

Purchase equipment

Increase the number of employees /training

Increase production

Create a marketing plan

Develop foreign markets

Create a business plan

Invest in R&D

Invest in ICT: create or improve awebsite / intranet

Purchase new premises / facilities

Rationalize operations

Do a merger / acquisition analysis

Which tactics are part of your strategy to grow your

business in the next 12 months?






Main strategies (cont’d)

More niche strategies tend to apply to a smaller group of

entrepreneurs

> Few respondents are contemplating ICT strategies, with the

exception of creating or updating a website or intranet:

• exploring and evaluating social media (10%)

• purchasing or updating IT systems (9%)

• computing solutions / cloud computing (7%)

• hiring IT employees (4%)

> One in ten entrepreneurs (9%) plan on exploring environmental

improvements (―green‖ strategy).

> A few entrepreneurs are planning on relocating their business (9%).

– Entrepreneurs active at the international level (11%) are more likely

to be thinking about relocation.

> A greater percentage of entrepreneurs from Quebec (15%) would like

to pursue some type of certification over the next year. This result is

statistically greater than the national result (9%).

> Business transition is a hot topic. However, only 8% of respondents

are planning for business succession over the next year.

10%

9%

9%

9%

9%

8%

7%

5%

5%

4%

7%

ICT: explore and evaluate socialmedia (Web 2.0)

ICT: purchase or update IT systems

Explore environmental improvements("green" strategy)

Relocate the business

Obtain certification

Business transition

ICT: find out more about mobilecomputing solutions / cloud computing

Do a portfolio assessment

Sell assets

ICT: hire employees with specializedIT management skills

No strategy

Which tactics are part of your strategy to grow your

business in the next 12 months?






Target growth

Generally speaking, just under half of entrepreneurs have set

their target growth at less than 10%, while the other half are

aiming for overall growth of 10% or more

> More than two out of five entrepreneurs (45%) are targeting income

growth of less than 10%. More precisely, 27% of respondents aim

for overall growth ranging between 5% and 9.9%.

– This is the case for a significantly greater percentage of entrepreneurs

with no international activities (34%).

> The other half of entrepreneurs surveyed (56%) have set their

objectives at 10% or more, with 31% of respondents aiming for

growth ranging between 10% and 19.9%.

> An impressive 25% of respondents have set their income growth

objectives at 20% or more.

– Nearly one third of entrepreneurs active at the international level

(31%) have set their growth objectives at 20% or more.

2%

16%

27%

19%

12%

25%

Less than 0%

Between 0% and 4.9%

Between 5% and 9.9%

Between 10% and 14.9%

Between 15% and 19.9%

20% or more

What growth targets have you set for your business in the

coming fiscal year in terms of income / gross sales? (n=574)





Organizational structure

The larger the business, the more likely it is to have an official organizational structure and an advisory committee

> Overall, over two thirds of respondents (68%) said that their

company has an official management structure.

> The percentage of entrepreneurs who said ―yes‖ varies by business

size:

– 50 employees or more (95%)

– between 20 and 49 employees (90%)

– between five and 19 employees (74%)

– fewer than five employees (58%)

> One in five respondents (22%) said they have an advisory

committee or board.

– Advisory committees tend to be more widespread among larger

businesses with 50 employees or more (42%).

– They are also more common among businesses in Quebec (32%)

than elsewhere in Canada.

Does your business have an official management structure?

In other words, does it have a clearly defined organizational

chart? (n=574)

Does your company have an advisory committee?(n=574)

Yes, 68%

No, 32%

Yes, 22%

No, 78%





Entrepreneurial view

Over half of entrepreneurs said they are constantly

developing new products or services

> The majority of entrepreneurs said that they constantly develop new

products or services (53%).

– This ratio is significantly higher among entrepreneurs active at the

international level (62%).

> One quarter of those surveyed (25%) mentioned that they develop

new products or services only when necessary.

> Finally, another quarter of entrepreneurs (23%) are comfortable with

selling just one or a few products or services and improving them

so that they sell well.

– This is the case for a greater percentage of entrepreneurs in Atlantic

Canada (39%) and those not active at the international level (35%).

53%

25%

23%

I constantly develop newproducts or services

I develop new products orservices only when necessary

(occasionally)

I am comfortable with sellingjust one or a few products orservices and improving them

so that they sell well

Which statement best describes you as an entrepreneur?

(n=574)





Additional employees

For the most part, entrepreneurs plan on adding only a few

additional employees to their workforce

> One in five businesses (18%) do not plan on hiring any additional

employees.

> The majority said that they would hire one or two additional workers

(51%). This percentage decreases by company size:

– fewer than five employees (59%)

– five to 19 employees (48%)

– 20 to 49 employees (30%)

– 50 employees or more (5%)

> One quarter of respondents (24%) said that hiring initiatives will seek

to bring in between three and nine employees. Of these

respondents,17% plan on hiring three or four workers.

– Mid-size companies are more likely than others to be planning to hire

between three and nine employees.

> Finally, fewer than one in ten entrepreneurs (7%) foresee hiring 10 or

more additional workers.

> Unsurprisingly, this percentage climbs to 16% among businesses

with 20 to 49 employees and 38% among companies with 50

employees or more.

18%

51%

17%

7%

7%

None

1 or 2

3 or 4

5 to 9

10 or more

How many additional employees do you plan to hire in the

next 12 months? (n=574)





Respondent profile




22%

7%

35% 36%

Region

Sector / industry

n=574

Base: All respondents. Note that results have been weighted by region and business size to be representative of the Canadian SME population

23%

16%

9% 8% 7% 6% 5% 5% 4% 3% 3% 2% 2% 2%

5%

Manufacturing Businessservices

Wholesale Retail(1 - 19 empl.)

Construction Transportationand storage

Recreation,hospitality and

tourism

Professionalservices

Health Mediaand culture

Retail(20+ empl.)

Technology,telco andInternet

Primarysector

Non-businessservices

Other

Note that results were not weighted by sector of

activity. For this reason, some sectors (namely,

manufacturing) may be overrepresented, while

others may be underrepresented, compared with

the actual Canadian SME population.

Respondent profile

BDC status

55%

33%

8% 3% 2%

1 to 4 5 to 19 20 to 49 50 to 99 100 or more

BDC client; 48%

Former client; 11%

Never been client, 41%

Number of

employees




Appendix Entrepreneur results, by region and business size




International initiatives

Already included in the company’s operations Total Atlantic

Canada Quebec Ontario

Western

Canada

n=574 n=53 n=150 n=194 n=177

Importing 33% 21% 35% 35% 33%

Exporting 28% 21% 35% 32% 20%

Foreign alliances and partnerships 21% 13% 22% 22% 22%

Direct investment outside Canada (FDI) 7% 0% 4% 9% 9%

None of the above 44% 65% 45% 37% 45%

Base: Entrepreneurs

Numbers in red and green highlight statistically significant differences between sub-groups.

Already included in the company’s operations Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=574 n=168 n=236 n=111 n=59

Importing 33% 32% 34% 31% 43%

Exporting 28% 24% 29% 37% 46%



None of the above 44% 45% 44% 44% 26%





initiatives

Reasons mentioned Total Atlantic


Western

Canada

n=245 n=36 n=64 n=67 n=78

Not applicable to our business model 52% 43% 52% 52% 55%

The size of my company does not warrant it 27% 30% 27% 23% 29%

I have not found resources to help me start these

kinds of initiatives 11% 7% 7% 12% 13%

I have not found financing to start these kinds of

initiatives 9% 6% 1% 13% 11%

I think it is all too complicated 9% 4% 4% 11% 11%

I am happy with our current market, I do not want to

change anything 8% 17% 3% 6% 8%

Other 7% 13% 9% 9% 1%

Don’t know / Prefer not to answer 2% 2% 0% 0% 4%







initiatives

Reasons mentioned Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=245 n=76 n=105 n=48 n=16 *

Not applicable to our business model 52% 46% 59% 61% 68%

The size of my company does not warrant it 27% 35% 17% 14% 12%

I have not found resources to help me start these

kinds of initiatives 11% 13% 5% 13% 14%

I have not found financing to start these kinds of

initiatives 9% 10% 8% 2% 0%

I think it is all too complicated 9% 11% 5% 6% 6%

I am happy with our current market, I do not want to

change anything 8% 7% 10% 4% 6%

Other 7% 5% 10% 8% 6%





* Results presented for informational purposes only.

Results have no statistical validity due to the small sample. Please interpret results with caution.




Could benefit from international activities

Think that the company could benefit from

internationalization Total

Atlantic


Western

Canada

n=108 n=17 * n=27 * n=28 * n=36

Yes 58% 50% 68% 52% 61%

No 26% 36% 25% 23% 26%


Base: Entrepreneurs who do not currently have any international activities but for whom

international activities could be applicable



Think that the company could benefit from

internationalization Total

Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=108 n=42 n=43 n=18 * n=5 *

Yes 58% 55% 63% 60% 82%

No 26% 26% 27% 24% 19%





Imports

Total Atlantic


Western

Canada

n=195 n=10 * n=53 n=74 n=58

Average percentage of expenses related to imports 28% 14% 27% 30% 30%

Base: Entrepreneurs who currently import.



Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=195 n=54 n=81 n=35 n=25 *

Average percentage of expenses related to imports 28% 33% 24% 21% 22%




Exports

Total Atlantic


Western

Canada

n=180 n=10 * n=54 n=77 n=39

Average percentage of revenues related to exports 30% 17% 25% 38% 23%

Base: Entrepreneurs who currently export.



Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=180 n=41 n=70 n=42 n=27 *

Average percentage of revenues related to exports 30% 30% 29% 34% 21%




Global Supply Chain

Part of a Global Supply Chain Total Atlantic


Western

Canada

n=329 n=17 * n=86 n=127 n=99

Yes, we are part of a global supply chain as a

supplier 23% 22% 17% 28% 22%


customer / purchaser 22% 13% 12% 24% 26%

No, we are not part of a global supply chain 59% 65% 75% 53% 55%







Part of a Global Supply Chain Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=329 n=92 n=131 n=63 n=43


supplier 23% 22% 24% 28% 31%


customer / purchaser 22% 19% 26% 20% 23%

No, we are not part of a global supply chain 59% 63% 53% 57% 59%





Increased international initiatives

Think that increasing internationalization efforts

could benefit the company Total

Atlantic


Western

Canada

n=329 n=17 * n=86 n=127 n=99

Yes 80% 67% 86% 79% 78%

No 11% 24% 11% 10% 11%





Think that increasing internationalization efforts

could benefit the company Total

Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=329 n=92 n=131 n=63 n=43

Yes 80% 83% 74% 79% 81%

No 11% 10% 13% 9% 8%





Most beneficial international initiatives

Total Atlantic


Western

Canada

n=394 n=26 * n=104 n=143 n=121


Exporting 42% 22% 59% 44% 34%

Importing 30% 21% 26% 30% 35%


None of the above 4% 10% 2% 7% 3%

Base: Entrepreneurs who are active at the international level or for whom it would be applicable.

Multiple mentions were allowed, total exceeds 100%.




Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=394 n=115 n=158 n=74 n=47


Exporting 42% 41% 44% 39% 59%

Importing 30% 30% 30% 27% 37%


None of the above 4% 5% 5% 4% 0%




Desire and determination to pursue

internationalization efforts

Total Atlantic


Western

Canada

n=394 n=26 * n=104 n=143 n=121

Determined (score of 7 – 10) 44% 25% 60% 48% 33%

Hesitant (score of 5 – 6) 25% 30% 16% 21% 35%

Not very determined (score of 1 – 4) 29% 46% 24% 28% 31%







Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=394 n=115 n=158 n=74 n=47

Determined (score of 7 – 10) 44% 45% 42% 42% 46%

Hesitant (score of 5 – 6) 25% 27% 25% 18% 20%

Not very determined (score of 1 – 4) 29% 26% 31% 38% 32%






Total Atlantic


Western

Canada

n=394 n=26 * n=104 n=143 n=121

United States 84% 79% 81% 88% 81%

Asia (China, India, Vietnam, Philippines, Japan, Korea, etc.) 35% 9% 29% 32% 46%

Western Europe (Spain, France, England, Italy, etc.) 33% 34% 45% 33% 27%

South America (Brazil, Argentina, Chile, Uruguay, etc.) 21% 7% 28% 26% 14%

Mexico 19% 11% 24% 23% 13%

Oceania (Australia, New Zealand, Polynesia, etc.) 15% 3% 15% 16% 16%

Eastern Europe (Poland, Hungary, Romania, Russia, etc.) 14% 12% 26% 14% 8%

Caribbean 13% 35% 14% 13% 10%

Scandinavia (Denmark, Norway, Sweden, Finland, etc.) 13% 10% 19% 11% 11%

Middle East (Turkey, Jordan, Saudi Arabia, United Arab

Emirates, etc.) 12% 4% 12% 12% 13%

Central America (Guatemala, Belize, El Salvador, Honduras,

Nicaragua, Costa Rica, Panama) 11% 7% 15% 14% 6%

Southern Africa (South Africa, Mozambique, Zimbabwe, etc.) 5% 0% 3% 9% 3%

Central Africa (Cameroon, Gabon, Tanzania, Congo, Kenya,

etc.) 5% 0% 9% 8% 1%

North Africa (Morocco, Algeria, Tunisia, Libya, etc.) 4% 0% 6% 6% 1%










Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=394 n=115 n=158 n=74 n=47

United States 84% 84% 82% 86% 87%

Asia (China, India, Vietnam, Philippines, Japan, Korea, etc.) 35% 34% 33% 49% 37%

Western Europe (Spain, France, England, Italy, etc.) 33% 36% 29% 35% 35%

South America (Brazil, Argentina, Chile, Uruguay, etc.) 21% 16% 24% 36% 31%

Mexico 19% 15% 23% 25% 27%

Oceania (Australia, New Zealand, Polynesia, etc.) 15% 15% 13% 22% 15%

Eastern Europe (Poland, Hungary, Romania, Russia, etc.) 14% 14% 14% 17% 16%

Caribbean 13% 14% 13% 19% 8%

Scandinavia (Denmark, Norway, Sweden, Finland, etc.) 13% 13% 13% 12% 11%

Middle East (Turkey, Jordan, Saudi Arabia, United Arab

Emirates, etc.) 12% 11% 12% 19% 13%

Central America (Guatemala, Belize, El Salvador, Honduras,

Nicaragua, Costa Rica, Panama) 11% 8% 14% 17% 8%

Southern Africa (South Africa, Mozambique, Zimbabwe, etc.) 5% 5% 5% 7% 7%

Central Africa (Cameroon, Gabon, Tanzania, Congo, Kenya,

etc.) 5% 6% 4% 8% 2%

North Africa (Morocco, Algeria, Tunisia, Libya, etc.) 4% 3% 4% 13% 2%










Entrepreneurs’ self-assessment of key components for

international success Total

Atlantic


Western

Canada

n=394 n=26 * n=104 n=143 n=121

Confidence: degree of optimism about the success of the initiative 6.6 / 10 6.5 7.0 6.6 6.5


develops innovative products / services, etc. 6.6 / 10 6.1 6.9 6.7 6.4

Engagement: on the part of the management team and employees

involved 6.6 / 10 6.1 6.9 6.5 6.6

Competitiveness: large market shares, good reputation, unique

product, etc. 6.5 / 10 6.3 6.9 6.4 6.4

Business plan: internationalization is a good fit with the company’s

plans 6.2 / 10 5.0 6.2 6.1 6.5

Knowledge of the regions targeted by internationalization: team

members’ knowledge, previous experience, etc. 6.2 / 10 5.7 6.3 6.0 6.3

Network strength (strength and usefulness of the different members

of the company’s business network both inside and outside the

company’s current borders)

5.7 / 10 5.2 6.1 5.5 5.7

Financial strength of the company (financial health, debt-assets

ratio, etc.) 5.3 / 10 5.1 5.7 5.2 5.2

Critical mass (financial, operational and human capacity to meet

additional needs) 4.8 / 10 4.6 5.0 4.7 4.9








Entrepreneurs’ self-assessment of key components for

international success Total

Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=394 n=115 n=158 n=74 n=47

Confidence: degree of optimism about the success of the initiative 6.6 / 10 6.7 6.6 6.7 6.6


develops innovative products / services, etc. 6.6 / 10 6.7 6.5 6.4 6.6

Engagement: on the part of the management team and employees

involved 6.6 / 10 7.0 6.2 6.0 6.3

Competitiveness: large market shares, good reputation, unique

product, etc. 6.5 / 10 6.6 6.4 6.4 6.4

Business plan: internationalization is a good fit with the company’s

plans 6.2 / 10 6.3 6.1 6.2 6.6

Knowledge of the regions targeted by internationalization: team

members’ knowledge, previous experience, etc. 6.2 / 10 6.2 6.2 5.8 6.1

Network strength (strength and usefulness of the different members

of the company’s business network both inside and outside the

company’s current borders)

5.7 / 10 5.8 5.5 5.4 5.6

Financial strength of the company (financial health, debt-assets

ratio, etc.) 5.3 / 10 5.1 5.3 5.9 6.0

Critical mass (financial, operational and human capacity to meet

additional needs) 4.8 / 10 4.7 4.8 5.3 5.3





International experience

Total Atlantic


Western

Canada

n=394 n=26 * n=104 n=143 n=121

One or several members of the executive suite

(owner, partners, etc.) has that experience 66% 41% 65% 71% 67%

One or more of the company’s key managers has

that experience 25% 33% 26% 19% 29%

One or more of the employees has that experience 18% 19% 21% 15% 19%

We do not have anyone in the company with that kind

of experience 20% 25% 24% 14% 23%







Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=394 n=115 n=158 n=74 n=47

One or several members of the executive suite

(owner, partners, etc.) has that experience 66% 68% 67% 54% 67%

One or more of the company’s key managers has

that experience 25% 20% 27% 40% 46%

One or more of the employees has that experience 18% 12% 23% 26% 40%

We do not have anyone in the company with that kind

of experience 20% 20% 20% 25% 13%





Exploring internationalization initiatives

Total Atlantic


Western

Canada

n=324 n=21 * n=88 n=118 n=97

We intend to explore different avenues internally in

the near future 60% 51% 69% 59% 56%

We intend to seek the help of an outside consultant

whose services are free 18% 7% 10% 19% 23%


whom we will pay 10% 0% 5% 16% 10%

We do not yet know 20% 26% 18% 20% 22%

We do not intend to do anything for the moment 9% 16% 8% 9% 9%

Base: Entrepreneurs who said that their company could benefit from increasing internationalization efforts.



Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=324 n=99 n=126 n=60 n=39

We intend to explore different avenues internally in

the near future 60% 57% 63% 57% 76%


whose services are free 18% 19% 17% 15% 15%


whom we will pay 10% 10% 10% 12% 10%

We do not yet know 20% 20% 21% 22% 14%

We do not intend to do anything for the moment 9% 10% 8% 5% 10%




Aspects for which advice would be

required

Advice / help required Total Atlantic


Western

Canada

n=72 n=2 * n=13 * n=31 n=26 *

Finding reliable partners 73% 100% 79% 79% 62%

Identifying good business opportunities outside Canada 68% 100% 76% 71% 61%

Obtaining financing 67% 50% 90% 75% 50%

Overcoming obstacles related to trade and regulations in place 48% 50% 69% 51% 37%

Obtaining tax credits 48% 50% 69% 40% 48%

Protecting intellectual property rights 43% 50% 45% 41% 44%

Managing the relationships with all of the contributors in a

supply chain 34% 0% 15% 34% 42%

Managing authentication and security requirements 33% 50% 29% 36% 29%

Meeting quality control / process requirements in a supply

chain 23% 50% 32% 20% 21%

Other 2% 0% 0% 6% 0%








Aspects for which advice would be

required




Advice / help required Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=72 n=22 * n=27 * n=15 * n=8 *

Finding reliable partners 73% 71% 73% 77% 78%

Identifying good business opportunities outside Canada 68% 67% 70% 59% 86%


Overcoming obstacles related to trade and regulations in place 48% 52% 37% 59% 50%

Obtaining tax credits 48% 49% 50% 37% 39%

Protecting intellectual property rights 43% 40% 50% 33% 54%

Managing the relationships with all of the contributors in a

supply chain 34% 38% 26% 26% 39%

Managing authentication and security requirements 33% 34% 31% 29% 28%

Meeting quality control / process requirements in a supply

chain 23% 22% 27% 20% 14%

Other 2% 4% 0% 0% 0%





Main challenges

Base: Entrepreneurs


Total Atlantic


Western

Canada

n=574 n=53 n=150 n=194 n=177

Sales and marketing initiatives 40% 33% 35% 46% 39%

Managing finances and cash flows 39% 39% 29% 43% 41%


Time constraints as the owner of my own business 37% 24% 34% 37% 41%

Reduced profit margins 34% 40% 27% 30% 40%

Human resources (HR): recruitment and employee retention 27% 36% 28% 25% 28%

Information and communications technology (ICT): website /

online visibility 25% 11% 28% 22% 28%

Domestic competition 24% 24% 16% 25% 28%

Productivity 22% 18% 21% 26% 19%

Increase in the price of raw materials / other expenses 22% 39% 20% 21% 20%

Fluctuations in fuel costs 21% 47% 16% 21% 20%

Currency fluctuations 20% 12% 17% 21% 24%

Controlling the company’s growth 20% 15% 32% 15% 18%

Development of foreign markets: finding export opportunities 20% 5% 32% 21% 14%




Additional challenges (cont’d)

Base: Entrepreneurs


Total Atlantic


Western

Canada

n=574 n=53 n=150 n=194 n=177

HR: training and development 19% 15% 17% 19% 22%

Succession planning / finding buyers for my business 19% 17% 13% 17% 24%

Setting prices (products and services) 18% 18% 17% 16% 21%

R&D: product development 15% 5% 20% 20% 8%

Managing inventory and reassessing the amount of inventory 14% 14% 8% 15% 16%

Foreign competition 13% 2% 19% 14% 11%

Technology 12% 6% 8% 14% 13%

Distribution network 12% 1% 17% 11% 11%

Development of foreign markets: increasing my foreign market

share 12% 5% 15% 10% 12%

ICT: increasing the return on the current investment 11% 8% 7% 10% 16%

Obtaining certification 8% 3% 13% 8% 7%

ICT: business process automation 7% 0% 8% 5% 9%

ICT: finding experts 6% 5% 9% 3% 6%

How to become an exporter 5% 2% 8% 5% 5%

ICT: continuity of activities, data management and security 4% 0% 3% 5% 5%

No challenges 3% 3% 5% 1% 2%




Main challenges

Base: Entrepreneurs


Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=574 n=168 n=236 n=111 n=59

Sales and marketing initiatives 40% 45% 34% 38% 32%

Managing finances and cash flows 39% 40% 38% 35% 31%


Time constraints as the owner of my own business 37% 37% 39% 31% 26%

Reduced profit margins 34% 30% 37% 40% 50%

Human resources (HR): recruitment and employee retention 27% 21% 34% 39% 38%

Information and communications technology (ICT): website /

online visibility 25% 25% 28% 21% 21%

Domestic competition 24% 23% 23% 29% 34%

Productivity 22% 17% 27% 25% 34%

Increase in the price of raw materials / other expenses 22% 19% 25% 24% 29%

Fluctuations in fuel costs 21% 20% 21% 20% 43%

Currency fluctuations 20% 19% 23% 15% 37%

Controlling the company’s growth 20% 22% 17% 15% 23%

Development of foreign markets: finding export opportunities 20% 22% 16% 17% 19%




Additional challenges (cont’d)

Base: Entrepreneurs


Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=574 n=168 n=236 n=111 n=59

HR: training and development 19% 16% 22% 26% 26%

Succession planning / finding buyers for my business 19% 15% 22% 27% 26%

Setting prices (products and services) 18% 23% 11% 16% 15%

R&D: product development 15% 17% 11% 16% 13%

Managing inventory and reassessing the amount of inventory 14% 14% 14% 10% 18%

Foreign competition 13% 14% 10% 16% 19%

Technology 12% 13% 10% 12% 9%

Distribution network 12% 13% 9% 14% 12%

Development of foreign markets: increasing my foreign market

share 12% 11% 11% 14% 17%

ICT: increasing the return on the current investment 11% 8% 16% 13% 10%

Obtaining certification 8% 10% 6% 8% 5%

ICT: business process automation 7% 8% 5% 5% 8%

ICT: finding experts 6% 4% 8% 10% 6%

How to become an exporter 5% 6% 4% 10% 0%

ICT: continuity of activities, data management and security 4% 6% 3% 2% 3%

No challenges 3% 3% 2% 1% 2%




Main strategies

Base: Entrepreneurs


Total Atlantic


Western

Canada

n=574 n=53 n=150 n=194 n=177

Develop new products / services 46% 36% 51% 50% 41%

Purchase equipment 31% 28% 30% 24% 38%

Increase the number of employees / training 30% 22% 25% 26% 38%

Increase production 29% 40% 31% 22% 34%

Create a marketing plan 26% 11% 22% 30% 26%

Develop foreign markets 24% 10% 36% 25% 20%

Create a business plan 16% 15% 13% 19% 15%

Invest in R&D 15% 10% 20% 20% 9%

Invest in ICT: create or improve a website / intranet 15% 2% 17% 15% 17%

Purchase new premises / facilities 13% 18% 11% 12% 13%

Rationalize operations 11% 8% 19% 6% 11%

Do a merger / acquisition analysis 11% 7% 15% 9% 10%




Additional strategies (cont’d)

Total Atlantic


Western

Canada

n=574 n=53 n=150 n=194 n=177

ICT: explore and evaluate social media (Web 2.0) 10% 2% 7% 11% 10%

ICT: purchase or update IT systems 9% 4% 7% 9% 11%

Explore environmental improvements ("green" strategy) 9% 9% 5% 10% 11%

Relocate the business 9% 4% 8% 9% 10%

Obtain certification 9% 11% 15% 9% 5%

Business transition 8% 7% 5% 9% 10%

ICT: find out more about mobile computing solutions / cloud

computing 7% 3% 6% 9% 7%

Do a portfolio assessment 5% 4% 7% 3% 5%

Sell assets 5% 5% 4% 3% 7%

ICT: hire employees with specialized IT management skills 4% 1% 5% 5% 4%

No strategies 7% 17% 8% 7% 5%

Base: Entrepreneurs





Main strategies

Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=574 n=168 n=236 n=111 n=59

Develop new products / services 46% 47% 47% 33% 46%

Purchase equipment 31% 29% 30% 31% 51%

Increase the number of employees / training 30% 27% 34% 26% 45%

Increase production 29% 22% 39% 35% 39%

Create a marketing plan 26% 25% 27% 28% 21%

Develop foreign markets 24% 22% 25% 25% 42%

Create a business plan 16% 18% 13% 13% 12%

Invest in R&D 15% 16% 13% 18% 25%

Invest in ICT: create or improve a website / intranet 15% 12% 22% 12% 10%

Purchase new premises / facilities 13% 10% 17% 13% 17%

Rationalize operations 11% 7% 15% 16% 26%

Do a merger / acquisition analysis 11% 8% 11% 17% 23%

Base: Entrepreneurs





Additional strategies (cont’d)

Base: Entrepreneurs

Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=574 n=168 n=236 n=111 n=59

ICT: explore and evaluate social media (Web 2.0) 10% 9% 12% 5% 5%

ICT: purchase or update IT systems 9% 7% 14% 11% 3%

Explore environmental improvements ("green" strategy) 9% 11% 6% 4% 12%

Relocate the business 9% 11% 6% 6% 7%

Obtain certification 9% 8% 8% 12% 10%

Business transition 8% 8% 8% 10% 9%

ICT: find out more about mobile computing solutions / cloud

computing 7% 7% 8% 4% 7%

Do a portfolio assessment 5% 6% 3% 5% 4%

Sell assets 5% 5% 4% 5% 8%

ICT: hire employees with specialized IT management skills 4% 5% 3% 4% 8%

No strategies 7% 8% 6% 5% 4%




Target growth

Total Atlantic


Western

Canada

n=574 n=53 n=150 n=194 n=177

Less than 0% 2% 6% 1% 2% 1%

Between 0% and 4.9% 16% 26% 12% 16% 16%

Between 5% and 9.9% 27% 25% 27% 23% 32%

Between 10% and 14.9% 19% 22% 18% 17% 20%

Between 15% and 19.9% 12% 11% 13% 13% 11%

20% or more 25% 10% 29% 30% 20%

Base: Entrepreneurs


Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=574 n=168 n=236 n=111 n=59

Less than 0% 2% 2% 2% 2% 0%

Between 0% and 4.9% 16% 13% 19% 18% 18%

Between 5% and 9.9% 27% 29% 23% 29% 35%

Between 10% and 14.9% 19% 16% 22% 22% 23%

Between 15% and 19.9% 12% 13% 12% 7% 10%

20% or more 25% 27% 23% 22% 14%




Organizational structure

Have an official management structure

i.e. Organizational chart Total

Atlantic


Western

Canada

n=574 n=53 n=150 n=194 n=177

Yes 68% 67% 70% 67% 67%

No 32% 33% 30% 33% 33%

Base: Entrepreneurs


Have an official management structure

i.e. Organizational chart Total

Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=574 n=168 n=236 n=111 n=59

Yes 68% 58% 74% 90% 95%

No 32% 42% 26% 10% 5%




Advisory committee

Have an advisory committee Total Atlantic


Western

Canada

n=574 n=53 n=150 n=194 n=177

Yes 22% 17% 32% 17% 23%

No 78% 83% 68% 83% 77%

Base: Entrepreneurs


Have an advisory committee Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=574 n=168 n=236 n=111 n=59

Yes 22% 19% 23% 27% 42%

No 78% 81% 77% 73% 58%




Entrepreneurial view

Self-assessment Total Atlantic


Western

Canada

n=574 n=53 n=150 n=194 n=177

I constantly develop new products or services 53% 45% 57% 54% 50%

I develop new products or services only when

necessary (occasionally) 25% 16% 28% 25% 25%

I am comfortable with selling just one or a few

products or services and improving them so that they

sell well 23% 39% 15% 21% 25%

Base: Entrepreneurs


Self-assessment Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=574 n=168 n=236 n=111 n=59

I constantly develop new products or services 53% 51% 53% 59% 60%

I develop new products or services only when

necessary (occasionally) 25% 23% 28% 24% 21%

I am comfortable with selling just one or a few

products or services and improving them so that they

sell well 23% 26% 19% 17% 19%




Additional employees

Total Atlantic


Western

Canada

n=574 n=53 n=150 n=194 n=177

10 or more 7% 2% 9% 8% 5%

5 to 9 7% 11% 8% 6% 8%

3 or 4 17% 14% 19% 15% 19%

1 or 2 51% 50% 51% 50% 51%

None 18% 24% 13% 21% 18%

Base: Entrepreneurs

Total Less than 5

employees

5 to 19

employees

20 to 49

employees

50 or more

employees

n=574 n=168 n=236 n=111 n=59

10 or more 7% 3% 6% 16% 38%

5 to 9 7% 3% 10% 16% 27%

3 or 4 17% 13% 22% 26% 19%

1 or 2 51% 59% 48% 30% 5%

None 18% 22% 14% 12% 12%

Market Intelligence (Marketing) [email protected]

Business Development Bank of Canada Head Office – 5 Place Ville Marie, suite 600, Montreal (Quebec) H3B 5E7

bdc viewpoints study internationalization / entrepreneurial profile · 2016-07-11 · 6...

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