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SMBs are crucial to developing Canada's digital infrastructure

By Elaine Mah |

As the Canadian economy increasingly relies on digital technologies, advancements to the digital infrastructure, such as broadband, are necessary. According to a recent Angus Reid Public Opinion poll, it's very clear that Canada's small and medium business (SMB) sector recognizes the Internet is a key element of business strategy. However, simply recognizing the importance of the Internet isn't enough. Expanding a business' online capabilities to work with customers and suppliers as well as investing in the hiring and/or training of staff with the appropriate digital skills is crucial to long-term success and competitiveness. And yet this effort will be in vain unless Canada's digital infrastructure continues to grow and improve.

Scribendi.com is a Chatham, Ontario-based editing service with staff and customers all over the world. As a business located in a small community which operates entirely online, Scribendi.com owner Chandra Clarke often feels the effects of the lack of digital infrastructure in Canada. In order to move huge amounts of data into the cloud, the company requires fast, reliable, uncapped internet capabilities, which can be a significant challenge and expense in rural areas.

The importance of continuing to develop Canada's digital infrastructure is beneficial for more than SMBs in rural and remote areas. The Angus Reid poll clearly showed that businesses have now passed the point where the Internet is considered a luxury or an add-on to their operation, with over 90% of businesses indicating that at least some of its business is conducted on the Internet. So as the SMB sector, which is an absolutely crucial economic driver, increases its Internet adoption, the expected results should include growth in the digital economy and job creation for Canadians.

These key issues were central at the Canada 3.0 Forum held in May 2010, where government and industry, entrepreneurs, and academics met to address the future of the digital economy in Canada. The outcome was the declaration of a "moon shot" to ensure anyone can do anything online in Canada by 2017, coinciding with Canada's 150th birthday.

But the goal of doing "anything online" is more than a question of universal access. It will require the participation of Canada's hundreds of thousands of SMBs. Unfortunately, 82 per cent of company owners polled by Angus Reid indicated that hiring and/or training people to improve either digital skills or the ability to do business online was not a priority.

Furthermore, there seems to be a disconnect between what is being declared by the "moon shot" and the reality for SMBs. Despite the large number of companies conducting business online, more than 50 per cent of private businesses have yet to create a company website. It's clear that a large number of companies have not prioritized nor understood the potential value of full participation in the digital economy.

So what can be done to equip SMBs for Canada's digital economy? First, industry and government together will have to educate and promote the importance of having a fully web-enabled populace. They will also need to put in place the education and training programs necessary to making sure we have the skilled workforce we need to support the "moon shot". There is also an opportunity for government and Canada's information and communications technology (ICT) sector to increase awareness of Canada's moon shot as 89 per cent of SMBs are not even aware this target exists.

Moreover, there's a need to tune-up existing programs to support SMBs and help grow Canada's ICT sector more quickly. Promoting programs and incentives available to businesses, such as the computer capital cost allowance exception, a federal tax relief measure allowing Canadian business owners to claim 100 per cent of the capital cost allowance for computer equipment and software purchased before the end of January 31, 2011, which help Canadian businesses remain competitive and make sure they have the tools for the future.

Canada's SMBs today are in an exceptional position to become global leaders in their fields. However, in order to realize this outcome businesses will need to work in tandem with industry and government working collectively to achieve the "moon shot". Only by firmly taking their place in the digital economy now can businesses ensure they do not get left behind.

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