Scotiabank encourages small and medium businesses to invest in innovation and technology as interest rates rise
TORONTO, May 26, 2022 /CNW/ - Canadian Small and Medium-Sized Enterprises (SMEs) should consider investing in innovations and technology before interest rates increase even higher, according to the latest report from Scotiabank.
Scotiabank's latest small business trend report, SMEs: The Shortage Economy sheds light on Canada's economic forecast and what that could mean for Canadian business owners in the coming months and years. The report indicates that business owners now expect supply chain disruptions to continue to worsen for at least the next six months, exacerbated by geopolitical events such as the war in Ukraine. These obstacles are having a significant impact on many SMEs' business operations and opportunities for growth.
In addition to these broad market challenges, the cost of borrowing will rise through 2023, with the Bank of Canada expected to continue to raise interest rates. While the Canadian business community began to express optimism as the pandemic waned, these various financial strains could impact SMEs that currently point to limited financial resources as factors constraining business development through the adoption of new technologies, such as e-commerce solutions.
The advice for SMEs to invest in innovation now extends earlier analysis from Scotiabank's most recent Path to Impact Report which found that businesses that invested in their digital capabilities were better positioned to withstand economic challenges.
"Taking a proactive approach to investing in your own business - now rather than later - will ensure it's more resilient, as you adapt to a higher cost future and capitalize on changing consumer behaviour," said Jason Charlebois, Scotiabank's Senior Vice President of Small Business Banking. "Canadian business owners can rest assured knowing that they can speak with a Scotiabank Small Business Advisor on financing options and how to best weather future economic headwinds."
As Canadian business owners plan their operational strategies for the year ahead, Scotiabank recommends five key areas for recovery and growth:
Visit the Scotiabank Advice+ Centre for Business for more details: https://www.scotiabank.com/ca/en/small-business/advice-centre.html
To read the full report SMEs: The Shortage Economy report, please click here.
† Interac is a registered trademark of Interac Corp. Used under licence.
Scotiabank is a leading bank in the Americas. Guided by our purpose: "for every future", we help our customers, their families and their communities achieve success through a broad range of advice, products, and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of over 90,000 employees and assets of approximately $1.3 trillion (as of April 30, 2022), Scotiabank trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit http://www.scotiabank.com and follow us on Twitter @ScotiabankViews.