New research highlights how digital tools support women, young Canadians and new Canadians along their entrepreneurial journeys
TORONTO, Nov. 26, 2019 /CNW/ - At a time when only half of small businesses in Canada survive their first five years1, new research from Ipsos, commissioned by Facebook Canada, reveals that accessible digital tools are critical for Canadian entrepreneurs to start, build and sustainably grow their businesses. The research, Empowered In The Digital Age: Leveling the Playing Field For Canadian Small Business, illustrates how Facebook's family of apps is providing a runway for growth for small-business entrepreneurs (SMEs) who often face systemic barriers to small-business ownership, ultimately helping to diversify and strengthen Canada's economy. The research highlights three influential groups of entrepreneurs whose dynamic growth can be attributed in large part to access to these tools: businesses owned by women, young Canadians and new Canadians.
"It used to be that big businesses were the only ones to benefit from scale. But now, for the first time in history, technology is enabling small businesses to meaningfully compete with larger brands on a more level playing field," said Garrick Tiplady, General Manager for Facebook Canada and Instagram Canada. "At Facebook, we're focused on helping Canadian entrepreneurs harness our powerful suite of business tools to scale new ideas, drive sustainable growth for their businesses and unlock economic benefits for all Canadians."
Key findings from the research showcase the extent to which social media is indispensable to meeting the needs of SMEs:
Getting started: A third of Facebook app users (33%) – specifically Messenger, Instagram and Facebook – say these tools helped them start their companies. This figure is even greater for businesses owned by young Canadians (57%), women (40%) and new Canadians (37%);
Keeping business strong: Nearly half (46%) say their business is stronger today because of Facebook's family of apps; this is true for two-thirds of Young-Canadian businesses (66%), Women-owned businesses (54%) and New Canadian-owned businesses (45%);
Realizing global potential through export: Exporters say Facebook tools have led to increased net sales in the last 12 months. More than four-in-10 say Facebook has (46%), and more than one-third of exporters say using Instagram (36%) and using Facebook (35%) has led to increased sales.
Furthermore, the research shows how Facebook's suite of apps is critical to meet important business needs. A large majority (77%) use Messenger to communicate directly with their customers, 71 percent use Instagram for marketing and promotion, and 69 percent use Facebook to connect with current and existing customers, helping them build online communities.
Empowered In The Digital Age: Leveling The Playing Field For Canadian Small Business is being released today as Garrick Tiplady takes the podium at the Canadian Club of Toronto. He will expand on the research findings and discuss how Facebook's family of apps is helping Canadian businesses seize opportunities presented by technology and build a stronger, more resilient Canadian economy.
Women-owned businesses: Unlocking the potential of an economic powerhouse
Women are at the forefront of exciting entrepreneurial activity and the research finds more than half of Women-owned SMEs say Facebook's family of apps has made their businesses stronger (54%). Communications are key to success and majorities use each of these tools to keep a direct line to their customers. Nearly eight-in-10 (77%) say this about Messenger; 68% use Facebook to communicate; and 61% say Instagram helps them stay in touch. Further, more than half say Instagram (56%) and Facebook (55%) give them access to new customers.
Women-owned SMEs in this survey report Facebook, Instagram and Messenger have helped generate higher sales in the last 12 months – most notably Facebook (57%). In terms of business and job creation, nearly half of Women-owned businesses say using Facebook's suite of apps is driving business creation in Canada (49%) and helping create jobs in their local communities (48%).
New Canadians: Creating opportunities for growth
Newcomers to Canada contribute to the nation's economy in numbers higher than their proportion to the population, and the entrepreneurial activity of immigrants is double that of those born in Canada2. Alongside new Canadians' appetite for starting and building businesses in their adopted country is an appetite for technology tools.
Nearly two-thirds of new Canadian business owners (64%) report using at least one of Facebook's suite of apps, and more than one-third (34%) use two or more. Majorities of New Canadian-owned businesses say Facebook, Messenger and Instagram are important to their businesses and effective in meeting their needs. Facebook is the most-used app: more than eight-in-10 (84%) new Canadians say they use Facebook for business marketing and promotion.
Young Canadians: Driving business creation in Canada
This generation of young Canadians is an important driver in creating businesses, with an 80 percent increase in the number of under 35-year-olds starting businesses between 2014 and 20183.
Nearly six-in-10 young Canadians say they have used these products and services to help start their own businesses — demonstrating a high value placed on Facebook's tools to open and operate their businesses. In fact, the number of Young Canadian-owned SMEs using Facebook apps to meet important business challenges (63%) is higher than their female and newcomer counterparts.
The Canadian Small Business Survey was conducted by Ipsos, an independent research firm, among owners and employees of micro-, small- and medium-sized businesses (SMEs) across Canada. The online survey was conducted from September 23 to October 2, 2019 among a random national sample of 1,200 respondents. Qualified respondents own or work for a for-profit company with fewer than 500 employees (SMEs as defined by the Canadian Chamber of Commerce). Survey participants include 213 owners and 987 employees of whom 591 are males and 609 females.
2019, "10 Things You (Probably) Didn't Know About Canadian SMEs," Business Development Bank of Canada.
2019, "A Nation of Entrepreneurs – The Changing face of Canadian Entrepreneurship," Business Development Bank of Canada.
SOURCE Facebook Canada
For further information: Media Contact: Megan Schumacher, [email protected], 647-278-0257