Insights from the Den and beyond

This fall marked the beginning of Dragons’ Den’s 12th season. As I reflect on the pitches we Dragons heard and the people we met in earlier seasons, it’s clear how dramatically the world of entrepreneurship has changed. With the rapid adoption of online and mobile commerce, the explosion of powerful social media tools and global connectivity, today’s entrepreneurs and business owners must operate in a drastically different climate than even a few years ago. Canada, it’s a whole new den.

To help Canadian small business owners and entrepreneurs grow and succeed in today’s landscape, over the past few years I’ve launched two accelerators, raised a venture capital fund and forged exciting new partnerships with enterprises eager to help Canadian entrepreneurs. Many of the entrepreneurs I work with — on and off Dragons’ Den — are learning to leverage the power of technology and e-commerce to create and grow new businesses in ways that weren’t possible a decade ago. One business that comes to mind is dignify, a Calgary based online-only business that sells beautiful quilt throws handmade in Bangladesh. It provides employment to women vulnerable to, or in recovery from, exploitation. The business and the vital support it provides would not be possible without the connective power of the internet.

It’s exciting and promising to see a new generation of young Canadians dipping their toes into small business ownership. There are still, however, many businesses out there that have not reached their full potential. For businesses just starting out or those that are well established, my advice would be: harness the power of technology and adapt to meet the market.

One of the most profound opportunities for businesses exploring sustainable growth strategies is e-commerce. Businesses that sell online are better positioned to access larger markets. Just to give you a sense of how big this opportunity is, Canadian e-commerce spending is forecast to reach $42 billion by 2018, with global e-commerce forecast to reach more than US$4.4 trillion by 2021. E-commerce is one of the easiest ways to test foreign-market readiness for a product, while using limited investment and overhead. Moreover, websites, marketplaces and social commerce continually evolve to open the path to purchase.

Despite the opportunity presented by e-commerce, I was surprised to learn from a recent PayPal Canada study that only 17 per cent of Canadian small businesses accept online payments. Clearly, there is a huge runway in Canada for small businesses to get on board. Fortunately, there are a number of partners and platforms that help businesses get online quickly, easily and securely. in the coming years as populations get older and resources more scarce. This is just one example in a long list of challenges that actually offer an opportunity for businesses eager and ready to provide solutions.

In October, I participated in a round-table discussion in Toronto with a number of small business owners to discuss the state of Canada’s small business ecosystem. It produced tremendous insight. I was struck by how many of these business owners drove meaningful results by following their customer instead of the competition. One that stood out was Wild North Flowers of Toronto — an online flower delivery service that uses only locally grown flowers. With each delivery, Wild North Flowers sends a personalized email to the sender, with a picture of the bouquet so they can rest assured they got what they paid for.

The online floral industry is mostly dominated by imported flowers and a shopping experience that, while well-established, lacks personalization. Jennifer Fowlow saw the opportunity to solve a customer-driven problem and respond to a market trend. By leveraging an online-first approach, she delivers beautiful, highly personalized and socially responsible arrangements that customers feel good about because they support local growers. Her competitors told her it would be too hard, that people wouldn’t pay a premium for locally grown flowers and that she couldn’t build a brand with an online-only presence. Fowlow stood her ground and today is a proud owner of a successful online business, which continues to grow.

There has never been a more exciting time for people to chase their dreams, be their own boss and run their business. Technology enables that. And it’s more easily accessible than ever. The Den may have changed, but for those entrepreneurs with strategy and a determination to get it right, there may yet be a chance to become a Dragon.