Small businesses optimistic about economy
Published Saturday July 4th, 2009
Data suggests small businesses are a great place to look for a job
Small business owners in Atlantic Canada are almost as worried about keeping and attracting staff as they are about any supposed economic downturn, a new study shows.
The study by Scotiabank shows that among small business owners in this region who were surveyed, the economy captured the attention of 13 per cent of them, compared to labour and staffing issues at 12 per cent.
Given that the national survey has an accuracy rating of plus or minus four per cent, 19 times out of 20, it means the two factors are pretty much equally dominating the minds of small business owners, as are the issues of keeping and finding customers (13 per cent) and expense management (10 per cent).
Depending on who you ask, the results mean either that a global downturn in other parts of Canada and the world has not hit Atlantic Canada's small businesses as hard as in some other places, or that anyone looking for work would do well to check out small businesses as a place to re-embark on their career path.
The study's findings for this region compare somewhat favourably to the national results in which small business owners found that the economy captured about the same amount of attention (12 per cent) as other core elements of operating a small business, including keeping and finding customers (15 per cent) expense management (11 per cent) and labour and staffing issues (10 per cent.)
The results show that small businesses are not being devastated by a slower economy.
"It is encouraging to note that most of this concern is more temperate in nature," says Kyle McNamara, managing director and head of small business at Scotiabank.
Most encouraging, McNamara said, is how 52 per cent of small business owners say things will pick up within the next six month or next year, while 11 per cent believe business is already getting better.
Nationally, 72 per cent of respondents reported moderate or no concern at all about the economy's long-term impact on their companies.
According to the study, small business owners cited cash flow (25 per cent) and sales revenue (23 per cent) as taking a hit in recent months, followed by the acquisition of new customers and competition, both at 19 per cent.
About one-third of business owners have modified their business plans, focusing on managing expenses (40 per cent) and adjusting employee hours (19 per cent.)
Thirty-five per cent of those surveyed don't even have a business plan.
David Wilton, director of small business at Scotiabank, says small business owners who are big on the fundamentals yet have a sound business plan that allows them to remain flexible are well placed to thrive.
"It's important to review your plan at least once a year, and more often if necessary, in response to significant changes in your personal life, your business or in the marketplace or economy," Wilton says.
The survey was completed between May 25 and June 5 and the data was weighted by region.
The survey dovetails with the just-released book by Wilton and McNamara called Get Growing: Keys to Unlocking the Potential of Your Small Business, published by Key Porter Books, which highlights the two overarching principles found in many successful small businesses: the importance of an effective business plan, and how a team of trusted advisors can help a small business overcome challenges and seize opportunities for growth.
A few other topics include sales and marketing strategies; managing cash flow, costs, finances, human resources and risks; and strengthening leadership skills.
All royalties from the book are being donated to the Canadian Youth Business Foundation, which helps young, aspiring entrepreneurs.
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