According to the recent RBC Small Business Poll, Canadians currently spend 30 percent of their budget on small businesses. Sixty-five percent of Canadians report they have done business with a small business in person or online within the last month and seventy percent of Canadians plan to spend more at local small businesses in the future.
“Canadians are continuing to show their local businesses love, but there’s no doubt that these small businesses are facing increasing supply chain and economic pressures, and a more competitive market,” says Vice-President of Small Business, Partnerships & Strategy, RBC, Don Ludlow. “
To remain attractive to current and prospective customers in this environment, small business owners are implementing both innovative and socially responsible business practices that align to Canadians’ principles, needs and purchasing preferences.
+ RBC Small Business Poll, July, 2022
Main Street Momentum: Canadians continue to shop local
Support for small business goods and services remains strong despite challenging economic conditions
- Canadians polled spend 30% of their budget at small businesses.
- Canadians report they have done business with a small business in-person or online within the last month.
Canadians intend to continue supporting local small businesses
- 7 in 10 Canadians polled plan to spend more at local small businesses in the future.
“Canadians are continuing to show their local businesses love, but there’s no doubt that these small businesses are facing increasing supply chain and economic pressures, and a more competitive market. As Canadian entrepreneurs and business owners look to adapt to this evolving environment, we wanted to share critical insights around what’s important to consumers today, so that they can continue to pivot, attract customers, win business, and grow their enterprises into 2022 and beyond.” Don Ludlow, Vice President of Small Business, Partnerships & Strategy, RBC
Canadian consumers reveal what would positively influence them to shop or support a business.
- Consumers 74%: Canadian consumers report they’d like to see businesses seek out and offer environmentally sustainable options
- Owners 72%: Implementation of more sustainable goods, processes, and services was a priority for their business
Social responsibility & diversity:
- Canadian consumers report actively seeking: 2SLGBTQ+ Businesses = 49% and BIPOC Businesses = 60%
- 75% of Owners agree conducting business in a socially responsible way will play a bigger role in influencing business decisions in the next year.
- 72% Consumers polled say that small businesses should invest in product and service innovation
- 57% Consider it important for small businesses to explore the metaverse for new ways to view and purchase products & services
- 70% Believe rethinking product design could cut costs and attract customers
- 76% Owners polled say that small businesses should invest in product and service innovation
- 60% Consider it important to explore the metaverse for new ways to view and purchase products & services
- 67% Believe rethinking product design could cut costs and attract customers
- 70% Consumers stated that it’s important small businesses offer digital payments and other online solutions, such as e-commerce
- 70% Business owners agreed they would seek to invest in such solutions in order to improve client convenience and experience
- 73% Of consumers believe that product, service, and channel diversification would help small businesses compete in light of inflation and market pressures
- 70% Of business owners agreed diversifying its range of products and services, or channels of delivery, will be critical to their competitiveness
About the Survey
The RBC Small Business Poll was conducted by Ipsos Canada from May 18-20, 2022. A total of 1,500 surveys were self-completed online by Canadian adults (Age 18+), represented in six different regions (British Columbia, Alberta, Saskatchewan/Manitoba, Ontario, Quebec and Atlantic Canada). Representative sample results are weighted to reflect the Canadian population. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±3 percentage points had all Canadian adults been polled. The credibility interval will be wider among subsets of the population represented. All sample surveys and polls may be subject to other sources of error, including, but not limited to, coverage error, and measurement error.
® / ™ Trademark(s) of Royal Bank of Canada. © 2021 Royal Bank of Canada.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.