January 10, 2012
Even with growing uncertainty in the global economy, Canadian entrepreneurs remain optimistic about turning the situation to their advantage, a BDC survey indicates.
One third of entrepreneurs consider a less favourable economic context as an opportunity to gain market share, the survey found. What’s more, business owners appear to be taking an aggressive stance—62% of them plan to introduce new products or services over the next two years.
The results are from a poll of members of BDC's ViewPoints online panel of entrepreneurs and professionals.
The survey, conducted in October 2011, indicates that many entrepreneurs are willing to invest in their businesses despite a slow economy. Half of them (51%) said the number of planned projects and investments has increased in the last six months.
Another key finding is that more than half of the entrepreneurs plan to invest in technology, a strategy that improves a business’s competitiveness, growth potential and innovative capacity, studies suggest.
- Close to six in ten entrepreneurs (58%) plan to invest in new information and communications technologies (ICT) over the next 24 months.
- Eight out of 10 entrepreneurs (79%) who have technology on their project list placed the value of their intended investment at $50,000 or less. Just 5% of the business owners plan to invest between $100,000 and $250,000 on ICT.
However, most entrepreneurs (81%) also said they are facing obstacles preventing them from expanding their business. When asked about the factors holding back growth, entrepreneurs indicated a series of issues, including the following:
- the economic situation (40%),
- access to additional financing (32%),
- and tough competition (27%).
In other findings, almost three quarters (72%) of entrepreneurs said they are optimistic for their company over the next six months. Entrepreneurs are less optimistic when it comes for the health of the overall Canadian economy. Only 39% of them are optimistic about its performance.
BDC surveyed a total of 525 entrepreneurs and 211 professionals. The survey was conducted online, between October 18 and 28 2011. Entrepreneur results were weighted according to the size of the firm and region.
If you're an entrepreneur or a professional and wish to join the BDC ViewPoints panel, please visit www.bdcviewpoints.com.
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