- Almost three out of five (56%) Canadian entrepreneurs surveyed say that they will invest in their businesses in the next 12 months.
- Respondents cited insufficient working capital, tight credit conditions and continued economic uncertainty as the main obstacles to investment.
- A little over half (52%) of respondents plan to invest $100,000 or less in the next 12 months. That said, more than one entrepreneur out of five plans to invest over $500,000 of whom 16% indicate that they were willing to undertake more than $1 million in investments.
MONTREAL, Oct. 15, 2012 /CNW Telbec/ - A majority - almost 60% -- of Canadian small and medium-sized enterprises (SMEs) say they intend to invest in their businesses within the next 12 months, according to a survey on investment intentions released today by the Business Development Bank of Canada (BDC).
Entrepreneurs say they plan to invest in Machinery & Equipment, Human Resources, working capital for marketing, and Information Technologies to increase their productivity. They also invest to create new products, develop new markets and increase production capacity.
"There is no better time to invest than now," said Jean-René Halde, President and CEO, BDC. "Success will belong to business savvy entrepreneurs who plan and invest in their businesses to make them more productive, innovative and growth-oriented. More Canadian businesses need to take the initiative and invest in their growth."
BDC announced the survey results for the launch of BDC Small Business Week™, which runs from October 14 to 20 under the theme "Aim High! Invest in your future."
"Although these are encouraging results, we would like to see these good intentions translate into actual investments," says Pierre Cléroux, Chief Economist, BDC. "The business environment is changing and entrepreneurs need to invest to stay ahead of the competition."
Investment obstacles still remain
Half of Canadian entrepreneurs polled who said they would not invest in the next year say it is not by choice. The main obstacles cited for not moving forward with their investment plans include insufficient working capital (50%), access to credit (30%) and an uncertain national economy (29%).
"We see that it's the very small businesses that are struggling the most to get much needed access to credit," adds Mr. Cléroux.
BDC's study also found:
- Out of the 56% who said they would invest in the next twelve months, half (28%) stated they will "definitely" invest and 27% said that they "probably" would invest.
- Respondents from Western Canada felt less strongly that the lack of working capital is an impediment to further investment.
- Economic uncertainty was viewed as a deterrent to further investment by respondents across all regions.
- Almost three out of five entrepreneurs (56%) said that they intended to invest in Machinery and Equipment and Human Resources; more than half (54%) want to invest in working capital for marketing, while almost half (46%) in Information Technology and Communication projects. Notably, less than one out of three entrepreneurs intend to invest in land or property.
The BDC Research and Market Intelligence group conducted an online survey with the BDC View Points panel, which is comprised of business owners and professionals from across Canada with 1 to 500 employees. BDC sent out 2,629 invitations to panelists who were asked to complete the survey, which ran online from August 14- 26, 2012. 513 respondents, or 19.5% of SME panelists, completed the survey. Results were weighted according to region and number of employees.
More detailed survey results are available at www.bdc.ca/en/about/sme_research
TM BDC Small Business Week is a trademark of the Business Development Bank of Canada (BDC)
About BDC Small Business Week™
BDC Small Business Week™ is a Business Development Bank of Canada (BDC) trademark whose origins date back to 1979 when BDC business centres in British Columbia's Lower Fraser Valley pooled their resources to organize a week of activities for entrepreneurs. This first event and one that followed in 1980 were so successful that BDC officially launched BDC Small Business Week™ across Canada in 1981. The initiative was quickly adopted by Canada's business community. In 2011, some 320 activities across Canada attracted close to 10,000 business people to BDC Small Business Week™. This BDC flagship event celebrates entrepreneurship at the local, provincial and national levels. www.bdc.ca/sbw
Canada's business development bank, BDC puts entrepreneurs first. With almost 2,000 employees and more than 100 business centres across the country, BDC offers financing, subordinate financing, venture capital and consulting services to more than 28,000 small and medium-sized companies. Their success is vital to Canada's economic prosperity. www.bdc.ca
SOURCE: BUSINESS DEVELOPMENT BANK OF CANADA
For further information:
BDC Public Relations