Canadian small businesses are doing better than they expected and are more confident about their future, according to the Staples Canada national small business quarterly survey.
Nearly three-quarters (74%) of respondents to the survey, which was conducted by Angus Reid Strategies, said their business had held steady in the past three months. That's up from 64% of respondents in the March survey. Thirty-nine per cent said business had improved compared with the previous quarter; 26% reported a decline.
Fewer businesses were cutting staff 49% versus 55% in the first quarter and a third are expanding their business offerings or skill sets.
Confidence among entrepreneurs and small business owners is also growing.
About 70% expect to see some improvement in their business over the next six months compared with 58% in March. The proportion of respondents expecting a decline has fallen to 6% from 17%. Similarly, only 12% feel the economy will decline over the next three months compared with 38% of respondents in the previous quarter's survey.
Staples Canada president Steve Matyas said, "Not only is there optimism among Canadian small businesses toward the Canadian economy, these businesses have seen a respectable degree of success during turbulent economic times."