Canadian companies face challenges when it comes to expansion. In fact, 24% of companies don’t know where to start, finds a study by Aimia Inc.

The study looked at nearly 350 companies headquartered in Canada that had a minimum of 50 employees. Almost half (46%) of these companies do not have the insights to identify markets for expansion, and don’t know the steps required to take their business overseas (63%). Further, 51% don’t know if their company is ready.

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Conversely, 90% that have expanded globally claim they were successful.

“Through our research, we’ve seen that global companies have an expanded range of clients, access to new partners, insulate themselves from economic slowdowns in Canada, and cite higher returns on investment,” says Rupert Duchesne, group chief executive at Aimia Inc.

So what is holding some Canadian business back? The research outlines four major perceived barriers to global expansion: knowledge, talent, resources and risk exposure.

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Additionally, even with Canada’s diverse and well-educated population, 37% say they lack the talent they need to succeed globally.

Other findings

  • Support services are underused – While companies are aware of the Canadian support services listed, including development banks, chambers of commerce, and government agencies, few engage them for support, with service-based companies engaging them less often (13%) than their goods-based counterparts (22%), on average.
  • Personal connections matter – Nearly a third (30%) of service-based companies and 44% of goods-based companies leverage their personal connections for support in going global.
  • A clear opportunity to build Canada’s knowledge economy – The majority of companies considering global expansion are service-based (60%), yet half of service-based companies feel they don’t have adequate support and resources to make the move outside of Canada.