In the latest episode of our podcast, our AI hosts, Amy and Ian, explore themes that build on our previous episodes, Episode 001: Rural Canada - An Untapped Oasis of Innovation Awaits and Episode 002: Entrepreneurship in Canada.
This time, they're diving into the insights from two recent BDC reports that offer a glimpse into the future of Canadian business: Four Key Trends Shaping the Future of Canada's Business and Unlock Tomorrow's Business Trends to Fast Track Your Growth.
Amy and Ian break down these trends, discuss their implications, and explore the biggest challenges and opportunities for Canadian entrepreneurs.
Below, we've summarized the key areas that entrepreneurs need to learn about to navigate the changing landscape of Canadian business effectively.
1. Rising Costs: Navigating the Pressure Cooker
Amy kicked off the conversation by addressing the elephant in the room—rising costs. As Ian pointed out, the Industrial Product Price Index (IPPI) jumped by a staggering 35% between spring 2020 and spring 2022.
"That's like getting hit with a decade of inflation in just two years," Ian explained. These increased costs—from raw materials to energy—are forcing businesses to rethink their pricing and growth strategies.
If you're curious about more opportunities for rural businesses, check out our discussion in Episode 001 where we talk about how rural areas are becoming hubs of innovation.
2. Evolving Customers: Balancing Price and Purpose
Next, Amy and Ian discussed how consumers are changing. "With inflation hitting their wallets, 44% of Canadians are actively looking for the lowest prices,"
Amy shared. However, it's not just about finding bargains. "Interestingly," Ian added, "many are still willing to pay more for local and environmentally-friendly products—66% for local, 50% for green options."
We also touched on similar consumer behavior shifts in Episode 002, where we explored how Canadian entrepreneurs are adapting to evolving consumer values.
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3. Labor Shortages: Creative Solutions for a Tight Market
The third trend Ian tackled was the ongoing labor shortage. "Despite efforts like increased immigration, it's still tough to find skilled workers," Ian said.
According to the Canadian Occupational Projection System (COPS), 56 occupations are expected to face shortages by 2031.
Amy noted, "Businesses are getting creative—streamlining operations, embracing automation, and focusing on employee retention strategies like competitive pay and a great work culture are key to dealing with this shortage."
4. Technology: The Backbone of Modern Business
"Technology isn't optional anymore—it's central to everything businesses do," Amy emphasized.
With 82% of Canadian businesses finding tech essential in recent years, it's clear that staying competitive means embracing advanced tools like automation, AI, and cloud computing.
"But there's a gap forming," Ian warned, "and small businesses need to catch up or risk being left behind."
For more on how technology can transform rural businesses, have a listen to Episode 001, where Amy and Ian share real-world examples of innovation in less urbanized areas.
However, the divide between large and small businesses in tech adoption could widen, making it harder for smaller enterprises to compete if they don't adapt.
Case Studies: Thriving Amid Challenges
To illustrate how these trends are playing out in the real world, Amy and Ian shared two case studies:
Jenna Foods: "Jenna Foods didn't let rising costs or labor shortages stop them," Ian explained. "They invested in an ERP system to streamline operations and cut costs by up to 30%." The investment not only improved their efficiency but also made them more attractive to tech-savvy young workers.
Rumble Boxing: Amy highlighted Rumble Boxing's strategic approach. "Faced with skyrocketing rent and a labor crunch, they focused on selecting prime locations and building a strong brand," she said. "They also leveraged CRM software, AI chatbots, and advanced analytics to keep efficiency high." These strategies helped Rumble Boxing overcome rising costs and thrive in a competitive market.
The Canadian Economic Outlook
Zooming out, Amy and Ian discussed the overall Canadian economy. "The economy is growing slower than it could be," Ian noted, partly due to high interest rates implemented by the Bank of Canada to combat inflation.
Higher interest rates have made borrowing costly, limiting business expansion. "Since 2022, Canadians have paid an additional $77 billion in interest payments," Amy pointed out. The good news is that inflation has returned to the Bank of Canada's target range, and there are hopes for interest rate cuts in the coming months.
The economic outlook suggests modest growth of around 1% in 2024, followed by a stronger recovery with 2% growth in 2025. While not a boom, it signals a steady path back to a healthier economy.
Bright spots include high household savings rates, which could drive more consumer spending, an improving housing market, and a likely uptick in business investment by 2025.
Key Takeaway: Navigating Complexity with Adaptation and Innovation
The future of Canadian business is complex, but it is also filled with potential.
The key to thriving lies in understanding and navigating the challenges posed by rising costs, changing customer preferences, labor shortages, and technological advances. Strategic planning, embracing technology, adapting to employee and consumer needs, and seeking out expert support will be critical for success.
As Amy summed up, "Businesses that are willing to adapt, innovate, and invest in both technology and people will be best positioned to seize the opportunities that the evolving Canadian economy has to offer."
Where Does AREA 81 Fit In?
While Canada’s entrepreneurial landscape is flourishing, rural areas are often untapped reservoirs of innovation and opportunity.
AREA 81 is dedicated to transforming these regions into thriving hubs for entrepreneurship, offering the resources, networks, and support systems needed to build and scale world-class ventures.
AREA 81 is more than a concept—it’s a movement to accelerate the success of rural entrepreneurs and turn their innovations into global solutions.
Driven by the vision of Chris Herbert and a group of passionate founding members, AREA 81 is obsessed with the growth and development of rural entrepreneurs. Their shared ambition is to foster an ecosystem where innovation-driven ventures flourish, enabling rural markets to participate in and shape the global economy.
This ties directly into the themes discussed in the post: overcoming obstacles, scaling businesses, and driving positive societal impact.
The founding members envision:
Empowering Rural Entrepreneurs: Our mission is to help rural innovators build sustainable ventures that not only create local value but can also compete on the global stage. AREA 81 aims to provide the mentorship, tools, and funding access needed for these businesses to succeed.
A Physical Hub of Innovation: One of the key pillars of AREA 81 is to establish a central hub in Grey Bruce where entrepreneurs can gather, network, and receive real-time support. This aligns with the post's emphasis on the importance of community and mentorship in building resilient businesses. Entrepreneurs in rural areas often face isolation—AREA 81 aims to change that by offering a collaborative space for growth and learning.
Collaboration and Networking: AREA 81 strives to create a dynamic network of rural professionals, enabling local talents to connect, innovate, and bring unique ideas to life. In doing so, we aim to mirror the energy and innovation seen in entrepreneurial hotspots like Silicon Valley but with a distinct rural focus.
Building Tech-Driven Ventures: With a focus on leveraging cutting-edge technology, AREA 81 will support the development of impactful startups that can transform rural economies. By providing access to both technological expertise and investment, we will help rural businesses grow beyond borders, contributing to broader economic prosperity.
Join the Movement: AREA 81—Bridging the Gap Between Rural Innovation and Global Markets
If you’re ready to be part of the next wave of transformative rural entrepreneurship, AREA 81 is the platform you need.
From offering world-class mentorship and funding access to building a vibrant community of innovators, AREA 81 is designed to help entrepreneurs start and scale ventures that redefine the future of rural markets.
Whether you're developing a new business or looking to expand your existing one, AREA 81 provides the ecosystem you need to succeed.
Together, we’ll unlock the full potential of rural entrepreneurship, starting in Grey Bruce and expanding to the world.
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