Canadian small- and medium-sized enterprises (SMEs) are among the most optimistic entrepreneurs around the world, according to HSBC's global small business confidence study.
About 29% of Canadian SMEs surveyed said they expect economic growth to increase by at least 4% this year. Those results are similar to the feelings of SMEs in Latin America and are only below the outlook of SMEs in South East Asia (39%), India (41%), Turkey (41%) and the Middle East (47%).
Given the financial turmoil in Europe, it's not surprising that SMEs in France and the U.K. were the least optimistic about economic growth.
Among developed countries surveyed, Canadian SMEs are among the most likely to increase capital expenditures and increase staff, although the majority plan to maintain existing spending and staffing levels.
The survey also found that the number of Canadian SMEs looking to expand internationally has grown to 35% from 13% in 2009. About 71% cite increasing sales and revenue as the key driver, while 68% are looking to accessing foreign markets.
With about 43% expecting to expand into the U.S. over the next two years, other targeted markets include Europe (18%), the U.K. (16%) and Latin America (12%). Only 9% plan to go into South Asia and 8% plan to go into China, Hong Kong and Taiwan,
Canadian businesses were not oblivious to the challenges associated with international expansion. Fluctuating foreign exchange and interest rates as well as a lack of knowledge or contacts overseas were considered two major barriers to entry.