Encouraging Export Diversification for Canadian Small and Medium-Sized Businesses: Quantitative and Qualitative Research on Free Trade Agreements

Executive Summary

Prepared for Global Affairs Canada

Supplier Name: Phoenix SPI
Contract Number: 08915-180520/001/CY
Contract Value: $132,465.95 (including HST)
Award Date: 2019-01-31
Delivery Date: 2019-06-03

Registration Number: POR 115-18

For more information on this report, please contact Global Affairs Canada at:  POR-ROP@international.gc.ca

Ce rapport est aussi disponible en français.


Encouraging Export Diversification for Canadian Small and Medium-Sized Businesses: Quantitative and Qualitative Research on Free Trade Agreements

Final Report

Prepared for Global Affairs Canada
Supplier name: Phoenix Strategic Perspectives Inc.
June 2019

This public opinion research report presents the results of an online survey of 507 export-oriented companies and set of 40 in-depth telephone interviews conducted by Phoenix SPI on behalf of Global Affairs Canada. The fieldwork for the research took place between March and April 2019.

This publication may be reproduced for non-commercial purposes only. Prior written permission must be obtained from Global Affairs Canada. For more information on this report, please contact Global Affairs Canada at:

Communications Branch
Public Services and Procurement Canada
Portage III Tower A
16A1-11 Laurier Street
Gatineau QC K1A 0S5

Catalogue number:
FR5-159/2019E-PDF
International Standard Book Number (ISBN):
978-0-660-30924-8

Related publications (registration number: POR 115-18):
Catalogue number FR5-159/2019F-PDF (Final report, French)
ISBN 978-0-660-30925-5

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Foreign Affairs, Canada, 2019

Cette publication est aussi disponible en français sous le titre : Promouvoir la diversification des exportations des petites et moyennes entreprises canadiennes: une recherche quantitative et qualitative sur les accords de libre-échange.


Executive Summary

Phoenix Strategic Perspectives Inc. (Phoenix SPI) was commissioned by Global Affairs Canada (GAC) to conduct quantitative and qualitative research in support of export diversification.

Background and Objectives

In alignment with the Minister of International Trade Diversification’s mandate letter, GAC is pursuing efforts to help Canadian companies diversify their exports abroad. The Free Trade Agreement Promotion Task Force was established to promote Free Trade Agreements (FTAs) through outreach to Canadian companies and training Canada’s trade commissioners. The Task Force had been in place for three years. GAC, therefore, wanted to collect baseline data on Canadian small and medium-sized businesses’ (SMEs) awareness of Canada’s FTAs, the extent to which these businesses are taking advantage of FTAs already in place, and the challenges SMEs see vis-à-vis diversifying their export markets.

The objectives of the research were to determine:

The findings from this research will be used by GAC to shape its FTA promotion strategy to better meet the needs of SMEs and provide a better client experience for Canadian companies that would like to diversify their exports.

Methodology

Qualitative and quantitative research was conducted with the target population: Canadian SMEs that export. This included an online survey administered to 507 Canadian SMEs that export and a set of 40 in-depth, one-on-one telephone interviews conducted with a sub-sample of survey respondents. Specifically:

Additional methodological information is available in the appendix.

Summary of Findings

Exporting Activities

Majority of SMEs export to the U.S. and other foreign markets.

Exporting Obstacles and Assistance

Canadian SMEs face numerous challenges in relation to their activities in international markets.

Canadian SMEs require at least a little assistance in many areas when developing business in markets outside of Canada.

Awareness and Use of Free Trade Agreements

Among Canadian SMEs, there was fairly low awareness of Canada’s free trade agreements.

Few companies use any of these free trade agreements; the exception is NAFTA.

Impact of Free Trade Agreements

Tariff reduction is the top perceived benefit of using free trade agreements.

Free trade agreements influence companies’ export strategy in various ways.

Communication Preferences and Information Needs

Top information sources for doing business abroad – associations and colleagues.

Vast majority uses the internet to stay on top of industry trends and general business information.

Reading articles, getting answers from experts – top methods to consume information

Notes to Readers

The contract value was $132,465.95 (including HST).

Political Neutrality Certification

I hereby certify as a Senior Officer of Phoenix Strategic Perspectives that the deliverables fully comply with the Government of Canada political neutrality requirements outlined in the Communications Policy of the Government of Canada and Procedures for Planning and Contracting Public Opinion Research. Specifically, the deliverables do not contain any reference to electoral voting intentions, political party preferences, standings with the electorate, or ratings of the performance of a political party or its leader.

Signed:

Alethea Woods, President
Phoenix Strategic Perspectives Inc.