Blog - Cambridge Chamber of Commerce

While economic and technological shocks will always be a constant feature of our world, experts say small businesses must continue to adapt and innovate to stay competitive and satisfy consumer preferences.

 

“The adoption of technology should be the priority for small businesses and the adoption of AI where it can help bolster their business should also be a priority,” says Cambridge Chamber of Commerce President & CEO Greg Durocher, noting 98% of Canadian businesses qualify as small businesses.

 

In its recent report entitled, A Portrait of Small Business in Canada: Adaption, Agility, All At Once, the Canadian Chamber of Commerce touches on this issue as it explores the integral role small businesses  in play in Canada’s economy and sheds light on how these businesses can thrive despite major economic forces working against them — including the rising cost of doing business, the highest borrowing costs in over two decades and increased pandemic debt loads.

 

The report, which defines ‘micro businesses’ as having 1-4 employees, ‘scale businesses’ as 5-19 employees, and ‘mature businesses’ as 19-99 employees, shows how small businesses of all sizes, ages and industries are already investing in technology to better access data and applications from their computers, tablets, or mobile phones — whether in the office or on the road — to connect better with their customers and employees. However, as the report indicates, a business’s size is important to its ability to not only adopt technology, but also take advantage of a variety of technology tools. The report finds that even more change is essential.

 

Greg agrees and says the need for smaller businesses to adopt artificial intelligence (AI) is especially imperative.

 

“In all probability, smaller businesses are less likely to adopt AI technology because they may be fearful of it,” he says. “But the fact of the matter is it may be the only tool that can bring them up and allow them to compete.”

 

AI and digital technologies

 

According to the report, across all industries, a higher proportion of small businesses planned to invest in AI and digital technologies. While 62% of micro firms (compared with an average of 55% for all small firms) expressed plans for the latter, 30% of mature firms were keen on investing in AI compared with the all-industry average of 24% for all small businesses. Scale and mature businesses were more likely to adopt multiple technology tools, especially those in finance and insurance, professional services, and wholesale trade.

 

“If they (small businesses) don’t get knee deep in AI from a business perspective, they may be missing the boat that was inevitably sent to save them,” says Greg.

 

The report also highlights trends to help small businesses adapt to how Canadian shoppers have evolved. While online shopping accelerated as a result of the pandemic, roughly 75% of Canadian shoppers still visit physical stores for key items like groceries, clothing, automotive, electronics, home and garden, and health products. To meet consumer preferences, businesses need to implement on and offline sales strategies to reach customers.

 

In the report, the critical importance of having an enticing online commercial presence is highlighted, with 83% of Canadian retail shoppers reporting they conduct online research before they visit a store. Having physical stores near customers also supports online sales, with nearly one in 10 Canadians making purchases online from retailers located nearby.

 

“There is still an opportunity for small businesses to capitalize on local business by advertising and marketing themselves locally,” says Greg. “But that doesn’t mean you shouldn’t have a strong online presence and look for every opportunity in which AI can help advance your cause.”

 

Canadian Chamber President & CEO Perrin Beatty says the findings in this report provides yet another signal that more focus is needed to support growth, especially among small businesses.

 

“We can start by reducing red tape, investing in infrastructure, and enabling an innovation economy,” he said in a press release. “These fundamentals of growth will increase Canadian businesses’ ability to compete and attract investment that will benefit Canadians, their families, and our communities.”

 

Click here to read the report.

 

 

Highlights of the report:

 

  • In June 2023, there were 1.35 million businesses in Canada with paid employees. The over- whelming majority (98% of the total) were conventionally classified as “small” businesses, which collectively employed over 11 million people.
  • In the “small business” category, micro firms are by far the most common businesses type in Canada. In fact, if all businesses in Canada were sorted by employment size, the median firm would have fewer than five employees, which underscores the importance of improving our understanding of the business realities of all small firms, but especially micro firms.
  • Nearly half of all small businesses are in the following four industries: professional, scientific, and technical services; construction; retail trade; and health care and social assistance.
  • Immigrants to Canada own a disproportionate share of private sector businesses (263,850 businesses, or 25.5% of all private sector businesses) compared with their share of population (23%). One strong factor is immigrants’ high share of micro businesses (30%), in contrasts with their underrepresentation in both scale and mature enterprises.
  • The past few years have offered women more flexible work arrangements, encouraging them to find more in-demand and higher-paying jobs, while government efforts to increase the availability of affordable childcare have helped women’s labour force participation to rebound. With the transition back to the office, barriers that perpetuate gender-based differences in labour force participation threaten this progress.
  • An underrepresented group in terms of business ownership (2.2%) compared with their share of the population (22%) is persons with a disability. Given the prevalence of disability, this gap signals tremendous untapped potential for entrepreneurship, but also one with significant potential effects on socio-economic outcomes, including labour market participation.
  • The LGBTQ2+ population (4% of Canada’s total population according to the 2021 Census) is also somewhat underrepresented as business owners (3.3%), lagging most as owners of mature businesses (0.6%).
  • Although they are 5% of the country’s population, Indigenous people’s share of businesses owned remains less than half of that (2.2%), although they appear to be doing better on ownership of mature businesses, the largest type of small business.
  • The most recent data (June 2023) show that, compared with pre-pandemic conditions in December 2019, the number of businesses increased by 7.3% for large firms, 5.0% for medium firms and only 2.9% for small firms.
  • Retail sales data show that e-commerce enjoyed a massive spike early in the pandemic but have since moderated as Canadians go back to in-person shopping. The share of total retail sales from e-commerce increased rapidly from 3.7% in January 2020 to peak of 10.7% just four months later in April 2020. With the lifting of pandemic related restrictions and stores have reopened for in-person shoppers, this figure has since moderated to 5.7%.
  • In addition to age, variation by industry showed a strong trend in technology adoption. Overall, average adoption shares across all industries and all technology tools were lowest for micro firms (12%), followed by scale (16%) and then mature firms (22%). Small businesses — particularly scale and mature — in finance and insurance, information and culture, professional services and wholesale trade were consistently among those reporting the highest technology adoption rates.
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In this digital landscape, businesses are increasingly reliant on web-based platforms for their operations, communication, and customer interactions.

 

While this technological shift has brought convenience and efficiency, it has also opened the floodgates to a myriad of cyber threats – many no longer just centred on email-based breaches. 

 

As the digital realm expands, the need for robust web-based security becomes paramount for businesses of all sizes due to the escalating frequency and sophistication of cyberattacks.

 

Hackers are becoming more adept at exploiting vulnerabilities, often targeting sensitive data such as customer information, financial records, and intellectual property. The consequences of a successful cyberattack can be devastating, ranging from financial losses and reputational damage to legal repercussions.

 

These security breaches can erode customer trust and a single security incident can shatter the perception of a business as a reliable custodian of sensitive information, leading to a loss of clientele and tarnished brand image.

 

To address these challenges, businesses need to invest in cutting-edge web security solutions. These include regularly updating software and systems, implementing multi-factor authentication, encrypting sensitive data, and conducting regular security audits. Collaborating with cybersecurity experts and staying abreast of the latest threats intelligence is equally crucial in maintaining a proactive defence against emerging cyber hazards.

 

 

We asked John Svazic, Founder and Principal Consultant of EliteSec Information Security Consultants Inc. in Cambridge to share his thoughts on what businesses can do to ensure they are prepared for potential web-based security threats:

 

 

Q. When did more browser-based cyber threats begin to surface as opposed to spam emails?

 

A. This is a hard question to answer, but these types of attacks aren't new and have been around for a while, likely since the early 2000s at least, but not in any volume.  Most cyber-criminal attacks are based on opportunity and ease, so the rise can generally be attributed to companies adding more sophistication to their websites, especially as they try to go online.  

 

Q.  What brought on this apparent shift?

 

A. Opportunity is the biggest reason here.  With the rush to go online, which the pandemic only exacerbated, some companies may be taking shortcuts to get online by going with free/low- cost options to maintain margins.  While I can sympathize with this point, losing most of your margins to fraud may be reason to re-evaluate.

 

Q. Are there warning signs business owners should watch for indicating they might be susceptible to an attack?

 

AUnfortunately, not. The best way to prevent this is to go look for vulnerabilities yourself or get someone who is skilled to go looking for you.  Having said that there are a few things that can be done on your own to better protect yourself, including:

 

  • Making sure all your software is up to date. This is especially important if you are using a Wordpress site to host your online presence. Making sure any plug-ins or add-ons that you are using are up to date is important.
  • Protect your online social media with two-factor authentication (2FA). Yes, this can be annoying, but it is a proven way to protect your accounts. Nothing is more painful than trying to get your Facebook or Instagram account back from a hacker, and many companies either pay up or are forced to create new accounts.
  • Never re-use passwords!  Getting a password manager is incredibly useful to prevent this and provides a great way to help share accounts between employees if necessary. Most can help store your 2FA code as well, so you don't need to share a single phone between individuals.
  • Hire a security professional to do a vulnerability assessment or penetration test of your web presence. Be sure that they are qualified by asking for references and samples of their work.  This is the costliest option but one worth considering if you want to be sure.

 

Q. What is one of the first steps they should take in terms of boosting their security?

 

A. Make sure that whatever you're using is fully patched. If this is offloaded to a hosting company or some other third-party provider, ask them what their patch cycle is. How frequently do they update, and do they do any third-party testing of their own infrastructure?  If a company is doing online sales, using a trusted partner like Shopify, Squarespace, etc., is a great way to check these boxes as these are reputable firms that take security seriously, which helps to offload the risk to someone else, albeit at a cost. 

 

Q. Are smaller businesses more susceptible to potential attacks than larger ones?

 

A. Sadly yes. While news headlines often focus on bigger named companies getting hacked and having to pay ransoms, the reality is that hundreds of smaller companies are getting hacked each day and not making headlines because they're just not big enough to report on, or they're too scared to report the attacks themselves out of fear of losing customers/reputation. Smaller companies often lack the resources or money to seek out help, so it can be a real catch-22.

 

Q.  If an attack has occurred, what should be the first step a business owner should take?

 

A. First check your business insurance to see if you have cyber insurance. Often, these policies will dictate who to call and what to do. Many brokers will recommend this type of insurance if you have an online presence, so it never hurts to start there. As most of these attackers are coming from outside the country, law enforcement won't necessarily be able to help, but report a cybercrime.  Start with the Canadian Centre for Cyber Security and report the incident. I would then recommend reaching out to a cybersecurity professional that specializes in incident response to help rectify the situation. Again, if you have a cyber insurance policy, this should be covered by insurance.

 

Q. Is it possible to become too paranoid regarding cyberattacks?

 

A. Absolutely. But it's best to always put things into perspective before things become too overwhelming. If you take some basic precautions, you can put most of these concerns aside.  It's always about perspective and the realization that raising the bar on cybersecurity isn't hard, and even small changes can deter potential attackers. Most cyber criminals are lazy, so they won't put in a lot of effort for minimal rewards. But if they can pull of a hack because it's easy, then they're willing to put in the effort for a few hundred to a few thousand dollars of potential payoff.

 

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REM Web Solutions Extends 10% Discount to Chamber Members on New Projects

The Cambridge Chamber of Commerce is proud to announce our latest Affinity Program, where our members can receive a benefit through the collective buying power. Recently through the graciousness of one of our members, the Cambridge Chamber had its website overhauled and revamped (www.cambridgechamber.com) and we couldn’t be happier with the results, nor could we have achieved it without the great support from REM Web Solutions (www.remwebsolutions.com).


"All I can say is WOW!"  Both to the results of a number of months of work from my staff and Rob Matlow's, but even more of a Wow for the fact that he was able to make this financially achievable.  REM Web Solutions works with hundreds of companies and organizations creating websites that are fully customer manageable. One of the absolute musts for our Chamber was to have it fully accessible to my staff, so that changes could be made on our schedule and that new information could be added at a moment’s notice, easily and exact. REM Web Solutions has an incredible back end product that makes it easy for anyone to use. It's flexible and so expandable.


REM Web Solutions Inc. was founded in 2001 and is a full service Web Professional Services Firm based in Waterloo Region.   REM found that many businesses were paying high costs to have their website maintained and had no control over their website content.  REM developed WebWiz@rd to give small to medium sized companies the ability maintain their own website content with only basic computer skills


REM’s employees have many years’ experience developing solutions for the web and understand what it takes to establish a successful online presence.  They worked with over 800 customers across North America. REM also has experience working with not-for-profit organizations and associations.


A finished website does not mean that REM’s relationship with their client is over.  Every member of REM’s team is 100% focused on building lasting relationships with their clients.  Only a phone call or e-mail away, REM offers the best technical support possible.


Other Affinity Programs Available through Your Membership with the Cambridge Chamber

The Chamber has a number of other Affinity Programs that bring a distinct buying power advantage to their Members, pricing that simply isn’t available to most businesses. Our Group Benefits program is probably our signature piece with over 300 member businesses on the program, and offers full coverage, including dental and extended health benefits at prices that simply aren’t available to the average business.

 

We have great program for Visa, MasterCard and debit card transactions through First Data, where the rates are at least half of what a business can normally get. Bulk buying helps us help our members to get affordable services, it is simply a must and our Merchant program with First Data has help businesses survive because the fees are so low. 

 

The Chamber of Commerce also offers a Group Retirement Program called Chamber Pension Plan (CPP),  photocopier program with Information Network Systems (INS) in Waterloo. Home phone and internet program through Worldline that simply can’t be beat. Discount with Dignity Memorial on funeral services as well as a host of other Chamber Perks offering our members and their employees discounts. .

 

Check out all the Chamber’s Affinity and Member to Member discount programs.


Our Affinity Programs are predominantly from LOCAL providers, Chamber Members helping Chamber Members, we’re so proud of them, they really make the benefit of being a Chamber Member one of the most valuable assets we have.

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