Canada's State of Trade 2025 published earlier this summer, puts SMEs front and center, showing how small businesses are increasingly shaping the country’s trade story. Looking back at the latest available data from 2023, it offers a clear view of how SMEs are participating in global markets, and what challenges and opportunities lie ahead. This sets the stage for a deeper look at the key challenges, emerging trends, and growth opportunities shaping SME export success in 2025 and beyond.
Breaking through: Challenges on the path to exporting
More Canadian SMEs are exploring international markets, but common roadblocks still stand in the way. In 2023, the top challenges cited by exporters included:
- Logistics: distance, availability, and ease of infrastructure use.
- Financial Risk: longer payment terms or risk of non‑payment from customers.
- Border obstacles: tariffs, non‑tariff barriers, import quotas, customs duties, border security issues.
While these remain the most frequently cited obstacles by exporters, a smaller share of non‑exporting SMEs reported them as barriers to exporting compared to 2014.
Since the data was collected, the global trade climate has grown more complex, marked by shifting geopolitical dynamics, supply chain disruptions, and evolving regulatory frameworks. For SMEs, navigating this environment alone can be especially challenging. That’s where the Trade Commissioner Service (TCS) comes in, offering timely support to help businesses move forward with greater clarity and confidence in the global market.
Trendspotting: Export edition
What SMEs sell abroad is just as important as how many are exporting. The latest data from the 2025 State of Trade report gives us a better sense of where the growth is coming from.
Services are leading the way
Exporting is no longer just about physical products, and the data makes that clear. In fact, 66% of SME exporters now sell services, either on their own or bundled with goods, challenging the myth that only goods are exported. This shift is even more pronounced among micro‑SMEs, with 53.3% exporting services only, highlighting their agility in sectors like digital consulting, creative industries, and technology.
Hybrid exporting is growing fastest
When it comes to exporting, why choose between goods and services when you can offer both? That's exactly what many Canadian SMEs are doing.
The fastest growth is coming from businesses that export a combination of goods and services, an approach that helps them compete more effectively in global markets. This aligns with evidence that one of the fastest‑growing areas of trade is the export of services linked to goods (The Conference Board of Canada, 2015). Growth is being driven by companies providing integrated solutions, such as manufacturers who pair products with installation or maintenance services, or service firms that bundle specialized tools or equipment with their expertise.
Medium‑sized SMEs still strong in goods
While services and hybrid models are growing, goods exports continue to play a major part in Canada's trade story. In fact, over half (54%) of medium‑sized SMEs solely export goods, capitalizing on their larger operations and economies of scale to stay competitive.
Growth among women, immigrant, and Indigenous owned businesses
Canada's export landscape is becoming increasingly diverse, with women‑owned, immigrant‑led, and Indigenous SMEs driving much of the recent growth in international trade. These businesses bring unique perspectives and strengths to global markets, though many also face distinct challenges that require targeted support.
Female‑majority owned SMEs
Export participation among women‑owned businesses has more than doubled in the past decade, from just 5% in 2011 to 14.5% in 2023. This rapid growth is helping close the gap with the national average for all SMEs which is 15.1%.
Immigrant‑led SMEs
Immigrant‑led SMEs make up 31% of all small and medium‑sized businesses in Canada, with 20% actively exporting. These businesses accounted for approximately three quarters of the growth in SME exporting since 2017, highlighting their important role in Canada's trade story.
Indigenous‑owned SMEs
Indigenous‑owned SMEs are demonstrating strong global ambitions, they are four times more likely to plan for international expansion compared to other Canadian SMEs. These businesses are active in a wide range of sectors, from clean energy and digital services to traditional arts and sustainable resource development. While they face challenges such as logistics and financing, they also emphasize the importance of people‑to‑people connections, securing access to funding, and intellectual property protection when entering new markets — highlighting a foundation of resilience.
How the TCS helps
We are a vital partner for Canadian SMEs looking to grow globally. We offer tailored, no‑cost support designed to reduce risk and help businesses succeed.
SMEs that work with the TCS consistently outperform those that go it alone, achieving:
- 20% higher export value
- 20% more international markets
- 3% more product types sold abroad
The TCS provides more than advice; it connects SMEs to global networks, market intelligence, and funding opportunities, helping businesses:
- Prepare for international markets with tools and guides.
- Identify promising markets via insights, trade missions, and matchmaking.
- Connect with buyers, partners, and investors worldwide.
- Solve issues abroad, from customs delays to contract challenges.
- Leverage Free Trade Agreements (FTAs) to access new markets and reduce trade barriers.
We ensure all SMEs, including those led by women, Indigenous Peoples, visible minorities, youth, and 2SLGBTQI+ entrepreneurs have access to global opportunities through inclusive programs and networks.
Get started now and connect with the TCS
Global trade may be challenging, but the right support can make all the difference. With tailored advice and connections, the TCS helps SMEs overcome barriers and seize global opportunities. Reach out and start your export journey today.
Learn how the TCS can help you succeed in international markets.