Four per cent increase in exports anticipated among SMEs in 2012
MISSISSAUGA, ON, Jan. 10, 2012 /CNW/ - Canada's small businesses say
they will begin to look to emerging markets for export opportunities to
supplement their trade activity with the United States, according to a
recent study commissioned by UPS Canada.
The Angus Reid survey shows one in five SMEs (21 per cent) say they will
consider conducting business in emerging markets such as China, India
or Mexico with some looking to broaden their export practices to
The shift in attention is being spurred by a greater sense of optimism
related to emerging markets with 59 per cent of SMEs believing blooming
middle classes in these markets have a growing appetite for Canadian
goods. There is also a sense that current national export activity
predominantly carried out by big business is not sustainable over the
long term. In fact, two-thirds of the survey respondents were unsure
that Canada can remain globally competitive if export generation comes
solely from large enterprise.
The survey further reaffirmed predictions by Export Development Canada
from earlier in 2011 that exports would grow by seven per cent in 2012
with four per cent of SMEs claiming that they intend to begin exporting
in 2012 and 14 per cent expecting to sustain existing export practices.
Longer term export prospects are more modest with only eight percent
planning to begin exporting in 2013 and fewer still in 2014 at five per
"There's definitely been a positive shift in small businesses'
perception of global trade," said Nicolas Dorget, vice-president, UPS
Canada. "Hopefully the trend will continue, because the Canadian
economy needs more businesses — regardless of size — to be engaged in
building the country's international trade presence beyond North
Dorget noted that despite the growing trend toward global trade, the
Angus Reid survey also revealed that many businesses prefer to keep
their business practices close to home. In fact, 62 per cent of
Canadian SMEs would prefer to use suppliers and partners within Canada
even if they are more expensive than those from overseas.
In addition, many SMEs are also hesitant to build their businesses
beyond their local areas with 50 per cent stating they intend to limit
business activity to their home province over the next 10 years.
"We're seeing an emerging disparity among SMEs in Canada," said Dorget.
"There are those who are beginning to realize that taking advantage of
emerging markets is extremely lucrative and not nearly as complex as
they had previously thought, and then there are those who are
withdrawing or who feel there's no demand for their product or service
beyond Canada's borders."
About the survey
From Oct. 20 - 25, 2011, an online survey was conducted among a sample
of 552 Canadian small and medium business owners who are Angus Reid Forum panel members. The margin of error on the full base — which measures sampling
variability — is +/- 4.1%. Discrepancies in or between totals are due
UPS (NYSE: UPS) is a global leader in logistics, offering a broad range
of solutions including the transportation of packages and freight; the
facilitation of international trade, and the deployment of advanced
technology to more efficiently manage the world of business.
Headquartered in Atlanta, Ga., UPS serves more than 220 countries and
territories worldwide. The company can be found on the web at UPS.com and its corporate blog can be found at blog.ups.com. To get UPS news
direct, visit pressroom.ups.com/RSS.
SOURCE UPS Canada Ltd.
For further information: