Most of the respondents acknowledge that this pause on investment should be a short-term measure as lagging on going digital may lose them their competitive edge.
“while pausing capital investments in digital can be a good strategy to wait out economic concerns, this response shouldn’t apply to investing in the digital skills and acumen of your people,” added Fedy. “A slowdown provides an opportunity to better align talent and technology after the rapid changes made over the last two years. Investing in training and upskilling your workforce on new technological advancements can achieve even greater efficiencies and better business solutions.”
Risk outlook
The biggest risks to Canadian SMBs’ growth, as identified by the poll, include rising interest rates and inflation, heightened cybersecurity threats and intense competition for the top talent with two-thirds having a difficult time hiring people with the skillsets they need to grow their business.
Dino Infanti, partner and national leader on enterprise tax at KPMG in Canada, says that businesses should use a measured approach in navigating near-term economic pain.
“It’s important keep a close eye on cash flow and future-proof your business but continue with the core strategies and investments that have been most critical to achieving growth. While a prolonged recession would have a more adverse effect on SMBs, an overreaction could extend it even further.”
