In January 2024 we conducted a survey on international trade. We found that in the past three years, 31% of SMEs exported goods, services or both; and 63% of SMEs were not involved in exporting and did not plan to do so at all.
These rates at which SMEs export have not changed since the last time we conducted the survey, in 2017. Today a majority of SMEs are exporting primarily to the U.S., followed by Europe, the U.K. and Mexico.
Businesses in manufacturing, wholesale, natural resources and the agricultural sector have the highest rates of exportation. If we look at our data by size of business, the bigger the business, the higher the likelihood they are involved in exporting. Only 25% of micro-sized businesses are involved in exporting goods, compared to 49% of medium-sized businesses.
For businesses involved in exporting, 66% of SMEs indicated that the cost of shipping is the biggest challenge they face, followed closely by the cost of currency and the cost of duties and taxes. Despite these challenges, 54% of SMEs involved in exporting activities indicated that they plan on increasing their exports over the next three years.
While there are some services and programs available to support and assist small businesses in importing and exporting endeavours, many of them remain underutilized. For example, 76% of SMEs are unaware of and have not used the programs available through CanExport Innovation; 63% of SMEs are unaware of and have not used programs available through the trade commissioner service; almost half of SMEs are unaware of and have not used the programs available through EDC; and one-third of SMEs are unaware of and have not used the programs available through CBSA.
To better support SMEs looking to expand into international markets, the CFIB recommends, among other things, to simplify customs and duty regulations, to enhance communication and information targeted to SMEs, and to lower border-related fees for smaller firms. Doing these things could encourage more SMEs to participate in trade activities.
We thank you for your time today and we look forward to answering any questions you might have.