For over 25 years, the Diversity Institute has supported entrepreneurs and small and medium enterprises (SMEs) in advancing innovation, productivity, sustainability and inclusion. SMEs account for most private sector employment but are often not central in the development of policies and programs. Our research has reinforced the importance of SMEs to the Canadian economy and also to achieving sustainable development goals.
We have documented the challenges and aspirations of SMEs, including the impacts of COVID, digitization, and the risks and opportunities of artificial intelligence (AI), green transition barriers and enablers, talent and skills shortages, and leveraging equity, diversity and inclusion policies and practices for competitive advantage. We have shown that SMEs need support not just in terms of resources and investments but expertise and talent to implement change. And we have collaborated on a host of programs to build capacity including developing the Future Skills Centre (FSC)-funded Skills Bridge with Magnet and the Ontario Chamber of Commerce to provided free access to relevant training and support. We have developed more than 20 programs and courses to help fill training gaps on digital skills, management and leadership, AI, green transition, as well as equity, diversity and inclusion(EDI). Our Diversity Assessment Tool App was designed to assist SMEs in developing their EDI Strategies, providing advice but also concrete examples of best practices. Our work has informed government, financial institutions, VCs and Investors, Incubators and accelerators, and other business support organizations.
Research by the Diversity Institute has also informed the development of the Women Entrepreneurship Strategy, which has established Canada as a leader, the Black Entrepreneurship Program and the 2SLGBTQi+ Entrepreneurship Program as well as shaping programs and policies to meet the needs of Indigenous, newcomer and refugee entrepreneurs and entrepreneurs with disabilities. We have also co-designed a number of programs through FSC with provincial and municipal governments to support SMEs and business owners.
Canada’s SMEs are diverse and have shown resilience, despite recent and difficult global and domestic economic challenges. As we head into 2025, there are three areas that SMEs should focus their strategies – AI adoption, Green Transition and Skills Development.
The adoption of digital technologies which could include cybersecurity, clean technologies for energy or production efficiency or AI is essential in today’s digital economy. If you don’t have digital adoption, you can’t innovate. During the pandemic, the pivot to using technology kept many companies going. Why stop now? Fortunately, employees are showing readiness for using some technologies in the workplace. Our recent research report with the Environics Institute in collaboration with FSC shows that employees are ahead of their employers in the adoption of artificial intelligence (AI). Workers are using AI, often without the guardrails or the knowledge needed. And, women are nearly on par in using AI in the workplace. SME leaders need to get ahead of using AI responsibly, not only to minimize IP, reputation and privacy issues, but also because of the efficiencies that result with ethical use of technologies such as AI.
Second, regardless of government policies all roads lead to green transition although the direction and pace may shift. SMEs produce 50% of greenhouse gasses and are a critical part of the solution in every sector. Working out the potential opportunities to reduce their carbon footprint requires expertise, time and funding and a careful look at every aspect of the value chain. There are supports and resources available to help on this journey – now is the time to start.
Talent fuels SME growth, innovation and sustainability. Understanding that investments in training are critical to success is key. There are many free or accessible training and work integrated learning programs for talent new to the workforce as well as for existing employees and the time is well spent because skilled employees will drive productivity, growth, innovation and sustainability. The national Advanced Digital and Professional Training (ADaPT) program provides a range of opportunities and is available through Skills Bridge along with 46 other courses. One of the biggest challenges SMEs face is navigating the range of options in terms of programs, funding and supports. We are working together with key stakeholders to provide more one stop shopping, to help SMEs access the knowledge, talent and supports they need to thrive. We look forward to continuing to provide resources and guide future conversations, policies and initiatives to support, grow and sustain Canada’s entrepreneurs.
Dr. Wendy Cukier
Professor of Entrepreneurship and Innovation; Founder and Academic Director, Diversity Institute
Dr. Wendy Cukier is a professor of Entrepreneurship and Innovation at the Ted Rogers School of Management, Founder and Academic Director of the Diversity Institute (DI) at Toronto Metropolitan University, Academic Director of the Women’s Entrepreneurship Knowledge Hub (WEKH) and Academic Research Director of the Future Skills Centre. She co-authored the bestseller “Innovation Nation: Canadian Leadership From Java to Jurassic Park, and is a leader in disruptive technologies and innovation and has authored more than 200 articles on diversity, inclusion and innovation. She also leads WEKH, funded by the Government of Canada, which promotes inclusive supports for women and other diverse entrepreneurs, and the Inclusive Innovation and Entrepreneurship Network (IIE-Net). She is the research leads for DI’s collaboration with the Future Skills Centre which helps the Canadian labour force, government and industry understand future skills and training needs, knowledge gaps and leading practices for an inclusive and competitive workforce in a changing labour market. Her work on DiversityLeads helped shape Bill C-25 and the 50 – 30 Challenge, in which the Diversity Institute is an ecosystem partner. She has been recognized with many awards, including the Harry Jerome Diversity Award, the Metropolis Research Award, the CATA Alliance and the Sara Kirke Award for Entrepreneurship and Innovation, and she has been recognized in the 100 Most Powerful Women by WXN. She has also received Canada’s Meritorious Service Cross, one of Canada’s highest civilian honours, and is the founder of several startups, social enterprises and nonprofits.
