When it comes to driving Canada’s economy, small businesses are anything but small. But they have unique challenges and needs that mean one-size-fits-all business solutions often won’t cut it.

“Small businesses are the beating heart of the Canadian economy. They make up 98 per cent of Canada’s businesses, and employ over ten million Canadians, making them vital contributors to the nation’s economic growth,” says Balinder Ahluwalia, senior vice-president and group head of market development and digital partnerships at Mastercard, Canada.

Take a stroll through any neighbourhood in the country, and it’s clear just how big this community is.

But while they may form our economic backbone, Ahluwalia notes that Canada’s small businesses are weathering challenging times. “For these businesses, the past few years have been difficult. They are dealing with high inflation, their input costs went up, interest rates went up, their real estate costs went up. And, according to Stats Canada, three in 10 businesses with fewer than 19 employees reported lower revenues in 2023 than they had in 2022,” says Ahluwalia.

Unlocking Canadian prosperity

As any owner will tell you, small businesses tend to put their heart and soul into what they do—and Ahluwalia believes they play an outsized role in growing Canadian prosperity.

“When you support a local small business, you are directly investing in your local community. That purchase power helps ensure local employment and, in turn, strengthens the local economy—and hopefully increases Canadian optimism about our nation’s prosperity,” he says.

That’s why Ahluwalia has set his sights on helping these mini-economic powerhouses achieve their full potential. “We believe that small businesses are essential to shaping Canada’s future prosperity. To remain competitive and continue to strengthen local economies, it’s crucial that they actively embrace digital tools and technologies. These innovations not only improve operations but also help businesses meet the evolving needs of today’s digital consumers,” he says.

Technology is the key

Given the rise of simple tech solutions that are easier than ever to adopt, Ahluwalia believes there’s no better time than the present. “Technology is a key enabler for small businesses to enhance productivity, streamline operations and stay competitive in a rapidly evolving digital marketplace,” he says.

In addition to payment solutions, many small businesses are adopting a range of technologies such as cloud-based accounting platforms, CRM systems and cybersecurity tools. These resources allow them to effectively manage risk and focus on strategic growth.

From reducing cyber-vulnerabilities to propelling daily operations, technology has the potential to transform just about every aspect of running a small business—which is why Mastercard is dedicated to unlocking multifaceted tools and solutions to support owners.

“Mastercard’s research shows that 75 per cent of small business owners emphasize the importance of technology education to help them adopt new digital solutions and cybersecurity measures,” he says, as one example. “Through our partnership with Digital Main Street, small businesses have access to free on-demand cybersecurity training that helps them implement digital solutions and help with cybersecurity education. This training equips small business owners with the knowledge and skills to help protect customer data, secure their online presence and protect against common cyber threats such as phishing and malware attacks.”

In today’s digital landscape, cybersecurity is a critical component of long-term success for small businesses, and Mastercard is committed to providing the tools and education needed to help ensure these businesses are equipped to navigate a safer and more secure digital economy.

“Through our Global Intelligence and Cyber Centre of Excellence in Vancouver, we are developing cutting-edge cybersecurity solutions to help protect small businesses from evolving cyber-threats,” says Ahluwalia. “This allows entrepreneurs to focus on strategic growth and innovation, improving overall efficiency that comes with embracing digital tools and technology while ensuring cybersecurity remains a priority.”

Mastercard’s commitment to strategic partnerships is built on the belief that small businesses should have access to a wealth of resources that empower them to grow. From technology education to strategic partnerships, solutions like these can help business owners overcome challenges and drive success.

Survey methodology

The Mastercard survey was fielded in the first quarter of 2024. Response data are derived from a representative sample of the Canadian population (N = 1,000) that includes an oversample of small business owners (N= 200). The margin of error for commensurate nationally representative survey responses is ± 3% at the 95% confidence interval. Results shown are weighted using age and gender demographic indicators from the 2021 Canadian Census.