SMBs in Canada are expecting their business to recover from the pandemic somewhat below global averages.
Only 74% of SMBs expect to return to pre-pandemic levels of profitability, below the global average of 81%.
41% of SMBs who aren’t confident about the future say that reduced consumer spending is negatively impacting them vs. 29% globally. 41% of the same SMBs say that a limited customer base is negatively impacting them, vs. 28% globally.
Our research identified that the COVID-19 pandemic has changed SMBs for good, and we identified four personas that have emerged
The Adaptors
The COVID Generation
Resilient
Left Behind
The Adaptors
27% of SMBs
Adaptors are characterised by having faced a wide range of barriers but they are particularly likely to say they have coped well.
This segment has faced more barriers in the past year than average, yet they still feel confident in their future success. A key driving factor behind this optimism is their adaptability – these SMBs have used more strategies and external resources than most in order to overcome their barriers.
The Adaptors are:
Have greater levels of confidence:
More likely to be male (58%)
Often medium sized (50-249 employees) (57%) and are more likely than others to be in the high revenue bracket (>£8.2 million) (21%).
Most likely to have received government support/funding (34%).
4 in 5 (79%) feel confident they will meet their staffing levels over the next 12 months.
3 in 4 (76%) are confident in the digital skills of their workforce over the next 12 months.
58% of this group expect their revenue to grow in the next six months, ahead of those founded before the pandemic (45%). They are growing – with 71% having already hired at least one person. Being born in the pandemic means they are much more adaptable to COVID-19 restrictions - only 29% say that they've been impacted by the pandemic e.g. in reduced footfall, travel restrictions. And when it comes to sustainability, they are more likely than average to expect to make a change to become more sustainable (91% vs. 86%), especially in reducing waste and recycling and becoming more energy efficient.
14% of SMBs
The COVID Generation
Much more likely than average to be in the following sectors..
Much less likely than average to be in the following sectors..
+100% more likely to be in personal services e.g. fitness, wellbeing
+74% more likely to be in manufacturing
+51% more likely to be in creative industries
-89% less likely to be in education
-75% less likely to be in hospitality
-49% less likely to be in professional services
Resilient SMBs have been hard hit by the pandemic and think about their business’ future with caution.
They are neither confident nor unconfident in the success of their business 12 months from now, and rather than trying to grow, they are still focused on overcoming the challenges they have faced in the last year.
18% of SMBs
Resilient
The Resilient SMBs are:
Facing the future with less certainty:
More likely to be young (40% of them are in the 18-34 age bracket).
Less likely to have received Government support /funding.
More likely to be in the technology (15%) and transport sectors (10%).
Only 1 in 4 Resilient (25%) were confident in the success of their business 12 months ago.
Confidence in their business’ success is only slightly higher now (28%).
Most expect no changes in their staffing levels (61%), revenue (54%) and investment in tech (54%).
SMBs within this segment are struggling to keep their heads above water and some report a business performance which may force them to close in 2022.
All of these SMBs are unconfident in the success of their business 12 months from now and none expect any growth in revenue.
9% of SMBs
Left Behind
The Left Behind SMBs are:
Facing the future with fear:
Small Business,
Big Opportunity?
A recovery delayed by lower consumer sentiment
Sage is committed to knocking down barriers for small and mid-sized businesses (SMBs), reducing friction and delivering insights. With this in mind, we surveyed over 13,000 SMBs globally, to understand their experiences in the past 12 months and their outlook for the future.
Choose a country to learn more
Canada
75% of South African SMBs are confident about the success of their business right now, 10% higher than the global average (65%).
80% feel confident about the success of their business over the next 12 months (vs. 69% globally).
Over half (56%) expect their employee numbers to increase over the next year – significantly higher than the global average of 46%.
Leading global optimism
South Africa
Confidence is high among US decision makers for the next 12 months; almost three quarters (73%) feel confident about the success of their business, four percentage points higher than the global average (69%).
In terms of revenue over the next 6 months, SMB decision makers in the US are more positive than the global average: a majority of 54% expect their revenue to increase, compared to 49% on average.
54% expect to see their employee numbers increase over the next year, which is higher than a global average of 46%. This includes as many as 22% who expect to see a significant increase, while only 13% of SMBs globally expect the same.
SMBs driving the recovery
USA
64% of SMBs in the UK feel confident in the success of their business right now, just below the global average (65%).
SMBs report facing significant barriers. 26% say they are unable to operate their business normally due to COVID-19. A quarter (25%) say they’re impacted by increases in costs.
Optimism is stronger towards the future, with 68% reporting confidence in their success 12 months from now.
Immediate headwinds but optimistic about the future
UK
Just over half (52%) of German SMBs feel confident in the success of their business right now, which is significantly lower than the global average (65%).
This lack of confidence is connected to low expectations for revenue growth as only two in five (39%) expect their revenue to increase in the next six months, whereas, globally, 49% expect increases.
As they look to the future, just 38% expect their investment in technology to increase over the next year compared to 51% of SMBs globally.
Less confident in future growth
Germany
1. South Africa
2. Malaysia
3. United States
4. Portugal
5. Spain
6. Australia
7. Canada
8. United Kingdom
9. Singapore
10. France
11. Germany
7. Canada
1. South Africa
3. United States
8. United Kingdom
11. Germany
SMBs in France are less confident than the global average in their future outlook for success in the next 12 months (62% vs. 69% globally).
This is in part driven by increased levels of dissatisfaction with the productivity of their business (28% vs. 16% globally) and with their ability to recruit talent (31% vs. 17% globally).
SMBs in France are more dissatisfied with their current staffing levels overall (29% dissatisfied vs. 16% globally).
Fears about productivity and staffing impacting outlooks
France
10. France
SMBs in Spain are more confident than the global average in the success of their business currently (73% vs. 65% globally).
This is in part driven by higher levels of satisfaction with the quality of their workforce (46% vs. 42% globally) and higher levels of preparedness to manage staff’s well being (44% vs. 40% globally).
Overall, 70% of SMBs are satisfied with their current staffing levels, versus 64% globally.
Higher levels of satisfaction about workforces improving outlooks
Spain
5. Spain
Confidence among Australian SMBs is consistent with global trends, with 71% feeling confident about the success of their business in the next 12 months vs. 69% globally.
Satisfaction with productivity is significantly higher in Australia (72%) than the global average (66%).
In line with global averages, supported by higher productivity
Australia
6. Australia
Almost two-thirds (64%) of Portuguese SMBs believe that the pandemic has made their business more resilient, significantly more positive than the global average (50%).
This resilience means that SMBs in Portugal say that they were less likely than in any other market surveyed to have needed financial support in the past 12 months (35% vs. 46% globally).
Resilience emerging from the pandemic
Portugal
4. Portugal
SMBs in Malaysia are more likely than the global average to name a range of barriers that are impacting their business, most notably being unable to operate as normal due to COVID-19 (50% vs. 34% globally), and increases in costs (42% vs. 31% globally).
They name a wide range of benefits that have helped them overcome these, including cutting costs (44% vs. 32% globally) and adopting technology to operate better (39% vs. 24% globally).
Positive outlooks despite high barriers
Malaysia
2. Malaysia
SMBs in Singapore feel less confident right now (53%) than the global average (65%).
Decreased cash flow is the most common reason for this lack of confidence and is much more significantly affecting SMBs in Singapore in comparison to the global average (55% vs. 32% globally).
Less confident than global averages
Singapore
9. Singapore
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Left Behind
Resilient
The COVID Generation
The Adaptors
Canada
USA
Portugal
Spain
France
Germany
UK
South Africa
Australia
Singapore
Malaysia
To find out more, download our report
Learn about how COVID has changed how SMBs globally operate, the biggest challenges they are facing right now, and how they're feeling about the next 12 months.
The view from our customers
We spoke to some of our customers to understand how COVID has changed their business for good, and how they're feeling about the future.
Choose a country to learn more
Just over half (52%) of German SMBs feel confident in the success of their business right now, which is significantly lower than the global average (65%).
This lack of confidence is connected to low expectations for revenue growth as only two in five (39%) expect their revenue to increase in the next six months, whereas, globally, 49% expect increases.
As they look to the future, just 38% expect their investment in technology to increase over the next year compared to 51% of SMBs globally.
Less confident in future growth
11/11 Germany
France
SMBs in France are less confident than the global average in their future outlook for success in the next 12 months (62% vs. 69% globally).
This is in part driven by increased levels of dissatisfaction with the productivity of their business (28% vs. 16% globally) and with their ability to recruit talent (31% vs. 17% globally).
SMBs in France are more dissatisfied with their current staffing levels overall (29% dissatisfied vs. 16% globally).
Fears about productivity and staffing impacting outlooks
10/11 France
Singapore
Germany
SMBs in Singapore feel less confident right now (53%) than the global average (65%).
Decreased cash flow is the most common reason for this lack of confidence and is much more significantly affecting SMBs in Singapore in comparison to the global average (55% vs. 32% globally).
Less confident than global averages
9/11 Singapore
United Kingdom
France
64% of SMBs in the UK feel confident in the success of their business right now, just below the global average (65%).
SMBs report facing significant barriers. 26% say they are unable to operate their business normally due to COVID-19. A quarter (25%) say they’re impacted by increases in costs.
Optimism is stronger towards the future, with 68% reporting confidence in their success 12 months from now.
Immediate headwinds but optimistic about the future
8/11 United Kingdom
Canada
Singapore
SMBs in Canada are expecting their business to recover from the pandemic somewhat below global averages.
Only 74% of SMBs expect to return to pre-pandemic levels of profitability, below the global average of 81%.
41% of SMBs who aren’t confident about the future say that reduced consumer spending is negatively impacting them vs. 29% globally. 41% of the same SMBs say that a limited customer base is negatively impacting them, vs. 28% globally.
A recovery delayed by lower consumer sentiment
7/11 Canada
Australia
United Kingdom
Confidence among Australian SMBs is consistent with global trends, with 71% feeling confident about the success of their business in the next 12 months vs. 69% globally.
Satisfaction with productivity is significantly higher in Australia (72%) than the global average (66%).
In line with global averages, supported by higher productivity
6/11 Australia
Spain
Canada
SMBs in Spain are more confident than the global average in the success of their business currently (73% vs. 65% globally).
This is in part driven by higher levels of satisfaction with the quality of their workforce (46% vs. 42% globally) and higher levels of preparedness to manage staff’s well being (44% vs. 40% globally).
Overall, 70% of SMBs are satisfied with their current staffing levels, versus 64% globally.
Higher levels of satisfaction about workforces
improving outlooks
5/11 Spain
Portugal
Australia
Almost two-thirds (64%) of Portuguese SMBs believe that the pandemic has made their business more resilient, significantly more positive than the global average (50%).
This resilience means that SMBs in Portugal say that they were less likely than in any other market surveyed to have needed financial support in the past 12 months (35% vs. 46% globally).
Resilience emerging from the pandemic
4/11 Portugal
United States
Spain
Confidence is high among US decision makers for the next 12 months; almost three quarters (73%) feel confident about the success of their business, four percentage points higher than the global average (69%).
In terms of revenue over the next 6 months, SMB decision makers in the US are more positive than the global average: a majority of 54% expect their revenue to increase, compared to 49% on average.
54% expect to see their employee numbers increase over the next year, which is higher than a global average of 46%.
SMBs driving the recovery
3/11 United States
Malaysia
Portugal
SMBs in Malaysia are more likely than the global average to name a range of barriers that are impacting their business, most notably being unable to operate as normal due to COVID-19 (50% vs. 34% globally), and increases in costs (42% vs. 31% globally).
They name a wide range of benefits that have helped them overcome these, including cutting costs (44% vs. 32% globally) and adopting technology to operate better (39% vs. 24% globally).
Positive outlooks despite high barriers
2/11 Malaysia
South Africa
United States
75% of South African SMBs are confident about the success of their business right now, 10% higher than the global average (65%).
80% feel confident about the success of their business over the next 12 months (vs. 69% globally).
Over half (56%) expect their employee numbers to increase over the next year – significantly higher than the global average of 46%.
Leading global optimism
1/11 South Africa
Malaysia
Left Behind
Resilient
The COVID Generation
The Adaptors
Our research identified that the COVID-19 pandemic has changed SMBs for good, and we identified four personas that have emerged
The Left Behind SMBs are:
Facing the future with fear:
More likely to be the smallest businesses (have a revenue below £500k, 47%).
Less likely to have received Government support /funding.
More likely to be founded before the pandemic (83%).
One-third say that they aren’t able to operate their business as normal due to COVID-19.
27% are concerned about increases in costs.
26% are experiencing significantly reduced demand from customers.
21% are experiencing key cash flow and liquidity problems.
All of these SMBs are unconfident in the success of their business 12 months from now and none expect any growth in revenue.
SMBs within this segment are struggling to keep their heads above water and some report a business performance which may force them to close in 2022.
9% of SMBs
Left behind
The Resilient SMBs are:
Facing the future with less certainty:
More likely to be young (40% of them are in the 18-34 age bracket).
Less likely to have received Government support /funding.
More likely to be in the technology (15%) and transport sectors (10%).
Only 1 in 4 Resilient (25%) were confident in the success of their business 12 months ago.
Confidence in their business’ success is only slightly higher now (28%).
Most expect no changes in their staffing levels (61%), revenue (54%) and investment in tech (54%).
They are neither confident nor unconfident in the success of their business 12 months from now, and rather than trying to grow, they are still focused on overcoming the challenges they have faced in the last year.
Resilient SMBs have been hard hit by the pandemic and think about their business’ future with caution.
18% of SMBs
Resilient
Much more likely than average to be in the following sectors..
+100% more likely to be in personal services e.g. fitness, wellbeing
Much less likely than average to be in the following sectors..
+74% more likely to be in manufacturing
+51% more likely to be in creative industries
-89% less likely to be in education
-75% less likely to be in hospitality
-49% less likely to be in professional services
58% of this group expect their revenue to grow in the next six months, ahead of those founded before the pandemic (45%). They are growing – with 71% having already hired at least one person. Being born in the pandemic means they are much more adaptable to COVID-19 restrictions - only 29% say that they've been impacted by the pandemic e.g. in reduced footfall, travel restrictions. And when it comes to sustainability, they are more likely than average to expect to make a change to become more sustainable (91% vs. 86%), especially in reducing waste and recycling and becoming more energy efficient.
Launched during COVID-19 and despite reporting larger than average barriers to success but they have big plans for growth in the years ahead.
14% of SMBs
The Covid generation
The Adaptors are:
Have greater levels of confidence:
More likely to be male (58%)
Often medium sized (50-249 employees) (57%) and are more likely than others to be in the high revenue bracket (>£8.2 million) (21%).
Most likely to have received government support/funding (34%).
4 in 5 (79%) feel confident they will meet their staffing levels over the next 12 months.
3 in 4 (76%) are confident in the digital skills of their workforce over the next 12 months.
This segment has faced more barriers in the past year than average, yet they still feel confident in their future success. A key driving factor behind this optimism is their adaptability – these SMBs have used more strategies and external resources than most in order to overcome their barriers.
Adaptors are characterised by having faced a wide range of barriers but they are particularly likely to say they have coped well.
27% of SMBs
The Adaptors
Download report
The view from our customers
We spoke to some of our customers to understand how COVID has changed their business for good, and how they're feeling about the future.
To find out more, download our report
Learn about how COVID has changed how SMBs globally operate, the biggest challenges they are facing right now, and how they're feeling about the next 12 months.
Sage is committed to knocking down barriers for small and mid-sized businesses (SMBs), reducing friction and delivering insights so that we can help them thrive despite the challenging environment they face.
That’s why we launched the largest global study of its kind into SMB long-term perceptions. We surveyed over 13,000 SMBs in markets across the world, to understand their experiences in the past 12 months and their outlook for the future.
Launched during COVID-19 and despite reporting larger than average barriers to success but they have big plans for growth in the years ahead.
More likely to be the smallest businesses (have a revenue below £500k, 47%).
Less likely to have received Government support /funding.
More likely to be founded before the pandemic (83%).
One-third say that they aren’t able to operate their business as normal due to COVID-19.
27% are concerned about increases in costs.
26% are experiencing significantly reduced demand from customers.
21% are experiencing key cash flow and liquidity problems.
Small Business,
Big Opportunity?
South Africa
Malaysia
United States
Portugal
Spain
Australia
Canada
United Kingdom
Singapore
France
Germany
