Fifty percent of Canada’s small business owners think the national economy is recovering slightly, while 20% think it’s no different and 15% think it’s declining slightly, according to the Sage Business Index 2011 – International Small Business Insights report.
The survey, conducted in November and December of 2010 by business software provider Sage North America, investigated business confidence among small businesses in France, Germany, Spain, the United Kingdom, the United States and Canada.
Survey results indicated that 39% of small business owners felt more confident about their business prospects in 2011 relative to 2010, while 38% felt no difference, and 19% felt less confident.
Canadian small businesses identified rising costs as their biggest challenge for 2011, followed by maintaining and increasing revenue, managing cashflow and a lack of funding or access to capital.
Heading into 2011:
- 48% of the Canadian business owners surveyed noted that they intended to reduce expenditures;
- 42% said they planned to monitor their finances closely;
- 25% reported that they intended to invest in sales and marketing;
- 15% indicated that they planned to raise funding and launch innovative products and services;
- 14% said they would consider closing or selling their business.
In the survey, 40% of Canadian small business owners identified Canada’s “good business culture and entrepreneurial spirit” as the most favourable reason to do business in the country, followed by 23% whose top pick was the national currency and exchange rate.
Key negatives to doing business in Canada were government bureaucracy and legislation, according to 63% of respondents, and government handling of economic challenges, cited by 55%.