Entrepreneurs feel the heat in turbulent economy

BDC survey finds stress is up this year

Tough economic times appear to be taking a toll on many Canadian entrepreneurs who reported in a BDC survey they're feeling more stress this year than last.

In the survey, entrepreneurs allocated an average score of 6.3 out of 10 to their perceived stress level at work this year, with 61% rating their stress at 7 or higher.

Asked to think back to their stress level last year, the entrepreneurs said they experienced an average score of 5.9 out of 10 a year ago, with 42% of respondents putting their stress back then at 7 or higher.

Entrepreneurs attributed their stress to a series of factors, including the following:

• Dealing with financial insecurity (71%)
• Handling the pressure of building a business (52%)
• Being the only person responsible for the business (51%)
• Spending a huge amount of time at work (38%)

The survey also found that entrepreneurs use a variety of strategies to deal with stress, including the following:

• Making sure they spend time with their family and friends (64%)
• Playing a sport or participating in a relaxing activity (52%)
• Taking a vacation at least once a year (48%)
• Confiding in someone they can trust (42%)
• Delegating tasks to lighten their load (38%)

The results are from a poll of members of BDC's ViewPoints online panel of professionals and entrepreneurs, who are invited to participate in surveys to make their views known on a variety of issues. The survey found that entrepreneurs' definition of personal success is tied up in the health of their business but also in their ability to find a balance between work and family responsibilities.

When respondents were asked about success, their top three definitions were the following:

• A profitable, growing and healthy business (34%)
• A balanced work and family life for both owners and employees (27%)
• Financial independence (23%)

The entrepreneurs were also asked a number of other questions about their businesses, including their use of the Internet. Here, over two thirds (68%) perceive themselves as beginners or intermediates in online marketing. Less than half of those who promote their website measure the effectiveness of their online marketing efforts (46%).

Among the three quarters of entrepreneurs whose companies have websites, 64% said the site gives detailed information about products and services but does not handle online transactions.

A total of 140 entrepreneurs completed the survey between August 18 and 28, 2009. Results were weighted according to region and size of firm to obtain results representative of Canadian small and medium-sized businesses.

If you're an entrepreneur and wish to join the BDC ViewPoints panel, please go to http://www.bdcviewpoints.com.