new Capterra Research Reveals that Canadian small businesses have faced a variety of operational challenges in the past year, including supply chain disruptions, national labor shortages and increased cyber security risks. The company surveyed more than 500 managers of SMEs on their experiences and perspectives on these issues.
supply chain disruption
More than three quarters of the SMEs surveyed said they experienced supply disruptions in the past year. And of the managers surveyed who reported issues, 61 percent said they faced supply disruptions, while 17 percent said they significantly impacted their business. When asked what caused their supply disruptions, many respondents pointed to the volatility of supply chains.
Other factors include supplier-enforced order limits, as well as uncertain fulfillment and delivery times.
To help offset the impact of supply chain challenges, managers adjusted their product offerings based on availability, helping prevent unfulfilled orders and dissatisfied customers. 34 percent of managers purchased products to ensure sufficient inventory, and 33 percent placed orders in large quantities in advance. About 32 percent worked with local suppliers.
Most of the business owners surveyed have already increased or plan to increase retail prices to offset rising supply chain costs.
labor shortage
The ongoing labor shortage in Canada is another hurdle many Canadian businesses faced this year. More than a third of company leaders surveyed said problems recruiting and retaining employees affected their businesses.
Thirty-five percent of managers struggle with hiring talent and have difficulty finding customer service employees. In addition, many also had difficulty finding staff for other departments such as customer experience, IT and general management.
To help address this problem, the surveyed SMEs increased salary offers, considered candidates outside their typical criteria, and advertised open jobs in new ways.
cyber security issues
As cyber security threats continue to be an issue for many businesses, 69 percent of those surveyed were aware of at least one existing vulnerability in their business. However nearly a third believed they had none.
The most common cyber security software used includes anti-virus software, which was cited by 67 percent of those surveyed. Others include firewall software, data backup tools, and email security managers.
In fact, the most common cyber threats Canadian companies faced in 2022 were email-related incidents, affecting 36 percent of companies. Additionally, 12 percent had their account taken over by hackers, and eight percent had experienced a ransomware attack within the past 12 months.
