PayPal report points to significant growth of online businesses, while offline enterprises stall
Canadian small- and medium-sized businesses leveraging e-commerce are growing significantly faster than their offline counterparts, according to a report released on Thursday by PayPal.
The report said small businesses that sell online through PayPal grew 22 per cent year over year in 2017, in sharp contrast to offline small businesses, which saw less than one per cent growth year over year in 2016.
“In today’s competitive world, small businesses need access to digital tools that open them up to global audiences,” said Paul Parisi, president of PayPal Canada, in a news release. “With a deep dive into our data it’s heartening to see that our small business customers are digitizing their businesses to grow and sell internationally. For Canada to be a more vibrant and inclusive economy, we need the vast majority of small businesses to embrace digital commerce capabilities because that’s where the world is shifting.”
PayPal Canada analyzed online transaction data from 4,000 Canadian small businesses that use its platform. It found:
“It’s clear that technology can accelerate growth for small businesses, which make up 98 per cent of all Canadian businesses. Despite this, only one in five Canadian businesses sell online, demonstrating that there is still untapped potential for small business growth,” said PayPal.
Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald, including 12 years as a senior business writer.