Salvation for small businesses awaits online

We’re losing local shops we love, writes Jeff Adamson.

As co-founder of Skipthedishes, I never thought I’d see the day when our prime minister would advise us to stay at home and order food delivery.

With the COVID-19 pandemic, more than three million Canadians have lost their jobs, and small businesses have been forced to close.

This needs to get us thinking about the future and what putting the pieces back together looks like.

Generations of small businesses in Canada are currently at risk of permanent closure due to COVID-19 and international competition. Action needs to be taken to protect our local businesses and preserve the value they add to our communities.

While we say we support local businesses, the numbers don’t add up.

Social media may lead you to believe that local businesses are supported by the masses, but the market share of large companies paints a different picture. Five companies control 80 per cent of Canada’s grocery market, with 7,000 small businesses making up the remainder. That’s a lot of hungry mouths being fed from a small slice of the pie.

As consumers, we need to start valuing small businesses beyond the price we pay at the till, including the 7.7 million people they employ and the hundreds of thousands of new jobs they create each year.

Small businesses must take a page out of the playbook of larger enterprises and make it easier for consumers to support them. Until then, Canadians won’t actually follow through.

Our tolerance has worn thin toward small businesses’ lack of flexibility in adapting today’s lifestyle and digital habits and will continue to drive purchasing decisions toward tech-forward commerce.

While digital technology and social media can make it easier for small businesses and customers to build relationships, there’s a price to pay for every connection.

Big Tech media monopolize 80 per cent of the digital ad market, driving up prices and blocking small businesses from reaching their customers. Many small businesses can’t afford to make their connections online, where most consumers spend their time and money.

Without a stronger digital presence that provides insights, small businesses can’t connect and understand behaviour. This makes it challenging to attract new customers and build loyalty. The reality is, we’re losing the local businesses we love.

As of mid-may, COVID-19 has cost small businesses an average of $252,980. Canada’s unemployment rate may skyrocket upwards of 20 per cent into next year. Before government economic relief became available, almost 80 per cent of small businesses were forced to fully or partially close.

Despite all the drawbacks, small businesses still have a fighting chance if they move swiftly and play to their strengths. With far less legacy tech debt and more agility, they can level out the playing field.

Adopting smarter technology can fast-track and help small businesses understand what consumers are looking for, making it easier to scale, gain meaningful insights and personalize their customers’ shopping experience.

When you make it simpler and cost-effective for small businesses to manage e-commerce and rewards programs, consumers will jump on board.

A frictionless experience that comes with a tech-forward platform is exactly what customers expect in 2020.

Changes need to come from both sides of the cash register. Small businesses need to embrace technology in order to deliver more relevant, timely value to customers.

Canadians need tools that empower them to make smarter spending decisions at local options in their neighbourhoods. Small businesses are the heart of our communities. Without them, our country wouldn’t be the same.

It’s time to protect what we stand for and come through for all Canadians.

Jeff Adamson is the chief merchant officer at Calgary-based startup Neo Financial and co-founder of Skipthedishes. Neo helps local restaurants, grocery stores, coffee shops and more attract and reward their customers daily.

We need to start valuing small businesses beyond the price we pay at the till.