Whether old, young, large or small, owners have something to learn from
TORONTO, Sept. 12, 2012 /CNW/ - More than three-quarters (77%) of
privately-held companies say that their business is going to get better
over the next year, despite economic performance being their chief
concern. In fact almost two-thirds of owners expect a growth rate of 4%
or more over the next year. This is according to early results from Business Insights 2012, PwC's latest study on the ownership, performance and issues of over
400 Canadian private companies.
Top issues and problems in the next twelve months: 2012
Economy/lack of activity
Labour shortages/recruitment of skilled staff
Tahir Ayub, PwC's Canadian Private Company Services Leader comments, "Not since 2009 has the economy been cited as the top
concern of private company owners. In last year's study the economy
didn't even make the response list of top three concerns. This is an
indication that continuing economic uncertainty could be creeping into
the thinking of owner-managers and precipitating more worry.
The top reasons why owners say they think business will get better:
improved sales (66%), more market share (50%) and strong company
forecasts (49%). Interestingly, over a quarter of respondents (26%)
also say they just have a "gut feeling" things will get better.
Mid-size company owners (under 500 employees) see themselves faring
better than their larger counterparts do - more of them expect their
business will get stronger by the middle of 2013 (80% versus 69% of
companies with over 500 employees).
Smaller companies (up to 100 employees) seem to be the most optimistic,
with over half saying their expected growth rate is higher this year
than what was achieved in 2011 (51% versus 33% of companies with over
... and age isn't just a number
Newer companies (operating less than 20 years) also see better prospects
for themselves and are more in tune with nurturing innovation.
Eighty-five per cent of newer companies see things looking up versus
73% of companies older than 20 years. Younger companies also more
frequently have an approach to identifying good ideas and putting them
into action (85% versus 75% of companies older than 50).
The longer a company has been in operation, the more they are currently
focused on reducing costs and the harder it appears for them to grow
their client base, more than half (54%) of companies over 50 years old
are focused on cost containment and 33% of them are having issues
finding new clients. "It's typically harder for more established
companies to expand their customer base significantly, but they should
not lose sight of the importance of continuing to innovate."
Ayub says, "Owners of larger more mature companies and newer, small to
mid-sized companies have something to learn from one another. While
more established companies may have the resources and experience to
back them, the level of complexity within a bigger organization makes
them less willing to take the risks and accept the failures of their
youth and they could lose out on opportunities."
He continues, "On the flip side, we've seen that once a smaller company
reaches around the $100 million revenue mark, an owner can't and
shouldn't rely on gut feeling as much as they may have in the past.
They need to start thinking about putting in the kind of infrastructure
and tools which are going to help them and their management team take
their business to the next level."
To view an Infographic related to this release, please click the
following link: http://files.newswire.ca/141/2012_BI_Infographic.pdf
About Business Insights
The eighth annual Business Insights®: The Survey of Canadian Private Companies examines issues affecting privately held companies including ownership,
foreign markets, current & future performance, innovation, leadership
and talent. In the summer of 2012, we surveyed over 400 leaders of
Canadian privately-held companies from a broad range of industries. The
full report will be available on October 23rd, 2012. A copy of the report (when available) and access to early
results, charts and infographic are available from the media contacts.
Data is also available for the 406 respondent companies by revenue,
number of employees, age and region. For more information, please
Follow PwC on Twitter at @PwC_Canada_LLP and on Facebook at www.facebook.com/pwccanada.
About PwC's Private Company Services (PCS)
More than 65% of PwC Canada's clients are private companies, ranging
from high net worth individuals to owner-managed family businesses and
large, professionally-managed businesses. PwC's Private Company
Services (PCS) group is a dedicated team of business advisors who help
private company owners resolve day-to-day business issues and achieve
long-term success. PCS offers the perspective of a third party with
professional industry knowledge, business consulting, tax and
accounting expertise. For more information about PwC's Private Company
Services, please visit www.pwc.com/ca/private.
About PwC Canada
PwC Canada helps organizations and individuals create the value they're
looking for. More than 5,700 partners and staff in offices across the
country are committed to delivering quality in assurance, tax,
consulting and deals services. PwC Canada is a member of the PwC
network of firms with close to 169,000 people in 158 countries. Find
out more by visiting us at www.pwc.com/ca.
© 2012 PricewaterhouseCoopers LLP, an Ontario limited liability
partnership. All rights reserved.
PwC refers to the Canadian member firm, and may sometimes refer to the
PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
PDF available at: http://stream1.newswire.ca/media/2012/09/12/20120912_C5818_DOC_EN_17706.pdf
SOURCE: PwC (PricewaterhouseCoopers)
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