Entrepreneurs optimistic about the future despite slowdown

Canadian entrepreneurs have remained remarkably upbeat through the current slowdown. The latest evidence comes from a BDC survey in which most entrepreneurs rated their company's health as good.

The survey, conducted in early summer, found 64% of entrepreneurs allocated a score of 7.0 or more out of 10 when asked to rate the health of their company. The average rating was 6.9.

What's more, almost seven out of 10 entrepreneurs (68%) said they believe the economic situation for their company will improve over the next 12 months, and over half felt their company's income (55%) and profits (51%) will increase over the next year.

But the survey also found that entrepreneurs have not been immune to the effects of the slow economy. Most entrepreneurs said the economic situation has had a direct impact on them as business owners.

When asked about the consequences, 44% of entrepreneurs said they have had to work longer hours. As well, 40% said they've had to resort to their personal credit for business purposes and 34% said they've had to assume different functions than before. Additionally, 31% said they've had to spend a lot of time looking for solutions to avoid layoffs.

There was also more evidence of tight credit in the survey, with 27% of entrepreneurs saying they spend more time looking for financing than they did before the recession.

The results are from a new BDC tracking survey designed to follow the health of Canadian entrepreneurs and their businesses. This survey will be conducted three times a year. Participants in the survey are 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 online survey also asked entrepreneurs for their top advice for people who are thinking of starting their own business.

A key piece of advice they offered to new entrepreneurs was to plan ahead and to be able to adapt their plan (28%). The second most popular tip for new entrepreneurs was to ensure their business is financially solid and to avoid borrowing at any price (26%). Respondents also advised newcomers to be prudent and cautious (16%).

A total of 170 entrepreneurs completed the study between June 16 and 26, 2009. Results were weighted according to the size of the firm and region to obtain results representative of Canadian small and medium-sized businesses.

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