The last three years have been overwhelmingly tough for many small businesses.
After surviving the pandemic and its impacts, Canadian business owners faced an uphill climb with soaring inflation, spiking interest rates, higher operational and labour costs and, for many, grappling with repaying government loans designed to keep businesses afloat at the height of the pandemic.
If 2023 was the year of resiliency and endurance, then let 2024 be the year of renewal and growth. That’s not to say there aren’t more challenges ahead. On the contrary, the rise of artificial intelligence (AI), frequent storms and unpredictable weather, and a bumpy economic road that may see interest rates stay higher than usual for many months are facts we all have to address. In light of that, it may be difficult to feel optimistic about the year ahead. But that’s where I believe our country’s small business owners have an upper hand.
By nature, Canadian small business owners are inventive, determined, and fearless. It’s that in-grown tenacity that will empower them to not just survive but thrive. After all, our midyear survey of small business owners found a majority (71%) were confident they’d be successful in the second half of 2023. That bodes well for our country’s small business community.
Here are three reasons why I am optimistic for small business owners in 2024:
Technology
More small businesses are enhancing their digital capabilities and leveraging AI to streamline their operations and increase revenue.
Adaptability
Small business owners are adopting a resourceful mindset to deal with economic headwinds. While cost-cutting where possible is necessary, owners are focused on decreasing debt and driving sales through new channels.
Inflation
It’s expected that inflation will continue to recede in 2024, and with it, the Bank of Canada (BoC) will slowly lower its benchmark rate in the latter half of the year (the BoC’s rate is 5% as of November).
Courage doesn’t always roar. Sometimes, it’s a whisper at the end of a day that says, “Try again tomorrow.” Canadian small business owners might not be full of bravado, but they are quietly courageous.
Danish Yusuf
Founder and CEO , Zensurance
Danish Yusuf is the Founder and CEO of Zensurance. He is a former leader in McKinsey & Company’s digital insurance practice supporting insurance clients globally on defining their digital strategies. Before McKinsey, Danish was a software architect and developer at IBM Canada, covering everything from mainframe development to web development. Danish earned a bachelor’s degree in Software Engineering from the University of Toronto and has an MBA from Harvard Business School.
