The primary reasons given for not having a plan are that it is not a priority (40 percent), they do not need one (33 percent) or have never considered the need (33 percent).
“With a significant portion of small business owners nearing retirement, and digital savvy younger entrepreneurs stepping up, the need for robust digital strategies and effective succession planning is escalating,” said Pouya Zangeneh, SVP of Small Business Banking at Scotiabank.
Scotiabank aims to support these transitions by offering tailored solutions and expert guidance.
Though 45 percent of small business owners believe digital transformation is essential for a sale or transition, 46 percent do not have a plan in place. Nonetheless, 71 percent have improved their digital capabilities in the past three years by upgrading software, hardware, or security.
Businesses that have made upgrades reported higher revenues (33 percent), better service (37 percent), and more customers (37 percent). Digital tools also help businesses attract buyers, ease valuations, and simplify the transition process.