For many small and micro businesses, joining the Greater Oshawa Chamber of Commerce is a strategic choice rooted in the desire to grow. Whether that means expanding networks, finding new avenues for exposure, or tapping into critical resources, growth is a central goal. The Canadian Chamber Data Lab’s latest report, Scaling Success, offers an in-depth look at Canada’s high-growth firms, uncovering the characteristics and strategies that drive success. This report quantifies the “who and how” of high-growth businesses and reveals actionable insights on overcoming challenges such as financing, technology adoption, exporting, and policy hurdles.
As your Director of Member Success, I love that we have the means to share these insights, which aim to empower our members with knowledge to thrive in today’s dynamic marketplace. Small businesses are the backbone of our economy—representing 98% of enterprises in Canada— and the findings in this report have significant relevance for our members and the broader community.
The Importance of Scaling Small Businesses
Scaling small businesses, especially those classified as “high-growth firms” (growing revenues or employment at a rate of 20% or more annually), is crucial for innovation, economic dynamism, and job creation. Despite representing a small percentage of all businesses, these firms account for a disproportionate share of new jobs. However, scaling remains a difficult feat, with inflation, labor shortages, and inconsistent demand continuing to present obstacles.
Ontario and Quebec stand out in the report as a critical hub for these high-growth firms. Many scaling businesses in these regions are immigrant-owned and employ between 5-19 workers—demonstrating that diverse and relatively small teams can make a big impact with the right resources.
Key Factors Driving Small Business Success
The report highlights four core factors that play a significant role in scaling success: access to financing, technology adoption, exporting, and public policy. These factors influence businesses differently, but all contribute meaningfully to sustainable growth.
- Access to Financing: Small businesses need capital to scale operations, invest in equipment, and weather economic fluctuations. With inflation and interest rates rising, non-traditional financing options like marketplace lending are becoming more popular.
- Technology Adoption: Firms that embrace digital tools, automation, and innovative processes gain a competitive edge. However, businesses that struggle with tech adoption risk falling behind.
- Exporting: Companies that tap into international markets enjoy faster growth, but many small businesses find it challenging to access trade networks and overcome regulatory hurdles.
- Public Policy: Simplified regulations and better access to government programs are essential to enabling small businesses to thrive.
Financing: The Lifeblood of Growth
Access to financing emerges as a decisive factor for scaling businesses. As inflation continues to squeeze budgets and lending rates fluctuate, many firms are looking beyond traditional sources for funding. Marketplace lending, venture capital, and public grants have become more popular alternatives to conventional loans, helping companies overcome financial constraints. However, smaller firms often struggle to meet the stringent requirements for loans, which can stifle their ability to grow.
For businesses within our Chamber network, exploring new financing options is essential. We encourage members to leverage resources such as government programs and grants that are designed to unlock growth potential. Supporting peer networks can also help businesses connect with investors or alternative lending platforms more effectively.
The Export Imperative
Exporting is identified as another key driver for small business growth, yet only a fraction of Canadian firms engages in international trade. Those that do export experience significantly faster growth and greater market resilience. Unfortunately, many businesses, particularly smaller ones, still encounter difficulties accessing foreign markets due to regulatory complexity, tariffs, and a lack of trade expertise.
While 90% of Canadian exporters are small businesses, these firms account for only 18% of total export, indicating immense untapped potential. The report emphasizes that businesses need better access to trade networks and government-backed export programs to thrive globally.
Technology Adoption as a Competitive Edge
Digital transformation is another area where scaling firms gain an edge. Companies that integrate innovative technologies—whether through automation, software solutions, or e-commerce—report higher productivity and more sustainable growth. The COVID-19 pandemic accelerated the adoption of digital tools, but there remains a divide between tech-savvy firms and those that lag behind in adopting new technologies.
However, not every business operates in a tech-driven sector, and many struggle to justify the investment in digital tools or may even assume that this epic change to the business landscape is not relevant to them. The challenge lies in finding the right balance—leveraging technology where it makes sense without disrupting existing operations.
Public Policy: Unlocking Growth Through Collaboration
The report also underscores the role of public policy in supporting small businesses. Regulatory complexity remains a significant hurdle, often making it difficult for businesses to access government programs or take advantage of new markets. Simplifying regulations and streamlining access to funding could go a long way in promoting high-growth firms.
Collaboration between government agencies, chambers of commerce, and industry groups is crucial in ensuring businesses can scale successfully. As the voice of business in Oshawa, the Chamber is committed to working closely with policymakers to advocate for changes that benefit small enterprises. Our policy priorities include reducing red tape, expanding access to financial programs, and enhancing trade partnerships to support members’ growth journeys.
How the Oshawa Chamber Can Support Your Growth
The findings from the Scaling Success report are a reminder of the importance of fostering a supportive ecosystem for small businesses to thrive. At the Greater Oshawa Chamber, we are committed to helping our members overcome the challenges outlined in this report through a variety of programs, events, and advocacy efforts.
Our signature events, workshops, and networking opportunities are designed to connect business owners with industry experts, financiers, and policymakers who can provide the resources and insights needed to scale. In addition, our member-exclusive platforms offer opportunities to share success stories, learn best practices, and form partnerships that can unlock new growth avenues.
Scaling a small business is no small feat, but with the right strategies, resources, and support, it is achievable. The Scaling Success report offers valuable insights into the paths high-growth firms have taken, highlighting the importance of access to financing, exporting, technology adoption, and supportive public policies.
The Greater Oshawa Chamber of Commerce encourages all members to explore the full report and consider how these findings can inform their growth strategies. By working together—through advocacy, collaboration, and community support—we can build a vibrant local economy that fosters growth and innovation.
For more detailed insights, download the complete report here.
