One-third of Canadian SMEs plan to increase staff: Zensurance.com survey

One-third of Canadian SMEs plan to increase staff: Zensurance.com survey | Insurance Business Canada

SME

One-third of Canadian SMEs plan to increase staff: Zensurance.com survey

But a significant portion are uninsured

A new survey shows a third (33%) of Canadian small- to medium-sized enterprises (SMEs) are looking to expand their workforce over the next six months, indicating strong confidence in the business climate and a readiness to tackle future challenges.

The survey by digital insurance provider Zensurance.com showed that over half (58.5%) of businesses reported an increase in their revenues since January 2024, with nearly 20% indicating that their profits had soared to new heights, showcasing significant growth compared to the first half of 2023.

This optimistic outlook is further supported by the businesses’ strategic plans for expansion. Approximately 23.8% of business owners are contemplating a second location, and 30.4% are preparing to introduce new services or products, demonstrating a proactive approach to scaling their operations.

Despite these positive trends, the survey also highlighted a concern: a significant portion of businesses (33.6%) operate without a business insurance policy, exposing them to potential risks. Reasons for not having insurance varied from misconceptions about the necessity and complexity of obtaining coverage to belief in the unlikelihood of facing significant operational risks.

The digital sphere also presents a notable risk, with 31.9% of respondents citing the threat of cyber-attacks and data breaches as their primary concern, slightly more prevalent than issues, such as theft, customer non-payment, and vandalism.

Zensurance.com polled 1,000 small business owners, entrepreneurs, and self-employed individuals in the retail, the retail, hospitality, professional consulting, construction, and health and wellness sectors.

The survey also delved into attitudes over less desirable job alternatives, with some business owners viewing roles like factory work, food delivery, and ridesharing as less appealing than running their own businesses, underscoring the appeal of entrepreneurship.

Danish Yusuf, CEO of Zensurance.com, emphasized the importance of equipping businesses with the right tools to succeed.

“The enthusiasm and positive outlook of Canadian small business owners are commendable. Yet, it’s essential that they also prioritize safeguarding their businesses with comprehensive insurance plans to navigate potential challenges effectively,” Yusuf said.

What are your thoughts on the risks facing Canadian SMEs? Share your views in the comments below.