The lion’s share of entrepreneurs in Western Canada say innovation is a priority in their business, but less than 10% say they have developed a formal innovation strategy.
This according to a Business Development Bank of Canada (BDC) survey released Wednesday as a part of small business week across Canada.
The survey showed 80% of Western-based entrepreneurs believe innovation is important to their venture, but a lack of funds and time block their strategies to implement new ideas.
“Innovation does not occur by accident, it is a decision,” said Jean-Rene Halde, president and CEO of BDC. “Companies that have an innovation strategy and culture are usually more competitive and better placed to capitalize on business opportunities that arise.”
The survey, which polled 830 business owners from all provinces and territories, defined innovation as something new being introduced to the business including the way a company is structured or how it produces and sells its products.
Of those business owners who tried to innovate only 11% said they were very successful. Another 11% said their attempts to innovate failed, while 60% believe they were successful.
BDC discovered that Western Canadian entrepreneurs were most likely to think positively about their efforts to innovate with 67% of those polled rating them as successful.
BDC also said business owners should develop "innovation portfolios" to drive new thinking.
Shirley Bennie, BDC’s vice-president financing and consulting in Vancouver, said, “One of the first things that many small and medium business owners may need to develop is a company culture of innovation. If employees don't buy into thinking in an innovative way, then entrepreneurs won't likely succeed with their initiatives."
Check out the small business section in this week’s Business in Vancouver to see how local entrepreneurs are using innovation to get ahead.