Did you know?
According Statistique Québec, in December 2023, Quebec had 957,025 businesses, 29.1% of which employed at least one person, and 99.7% of which were SMEs employing between 1 and 499 people.
However, their growth is often hampered by several major challenges. Here's a look at some of them:
1. Access to financing
One of the main challenges facing SMEs is access to the financing they need to expand. According to the Canadian Federation of Independent Business (CFIB), borrowing costs will have risen by 50% by 2023, making loans more expensive for small businesses.
How do we overcome this challenge?
- Government programs : initiatives such as Investissement Québec offer loans and guarantees to support SMEs
Investissement Québec. is presently offering loans to support SMEs. - Crowdfunding : using crowdfunding to raise funds while testing market interest in new products or services.
- Institutional participation: the contribution and support of institutions in participatory financing funds.
2. Shortage of skilled labor
The scarcity of skilled workers is a major brake on SME growth. Recruitment challenges have led to an 18% increase in payroll costs by 2023.
How do we over come this challenge?
- Ongoing training: investing in developing the skills of current employees can fill gaps and improve productivity.
- Attracting talent: offering flexible working conditions and competitive benefits can make SMEs more attractive to potential candidates.
3. Digital technology adoption
Digital transformation is essential to remain competitive, but many SMEs are hesitant because of the costs and perceived complexity..
How do we over come this challenge?
- Technology subsidies: government programs offer subsidies for the adoption of digital technologies. For example, you can make your digital transition with government support through the OTN program.
- Partnerships with technology startups: collaborating with innovative companies can facilitate the integration of new technologies.
4. Operating cost management
Rising costs, particularly in insurance (+30 %) and energy (+4 %), weighs on SME margins.
- Energy efficiency: investing in energy-efficient technologies can reduce long-term costs.
- Négociation avec les fournisseurs : revoir les contrats et chercher des alternatives peut permettre des économies significatives.
- L'utilisation des outils numériques : Procurify, Precoro Tradogram, which offer supplier and cost management functionalities aligned with the needs and budgets of small and medium-sized businesses.
What's in it for me?
The challenges facing Quebec SMEs are numerous, but solutions do exist. By taking advantage of government programs, investing in training and technology, and adopting proactive strategies, SMEs can not only overcome these obstacles, but also thrive in an ever-changing economic environment.