Small business in Canada predicts steady or improving economy

Business to focus on staff training, finding quality employees and improving or adding automation or technology.

Businesses to focus on staff training, finding quality employees, improving or adding automation or technology to boost productivity says SBRB report prepared in conjunction with Integrated Business Analysis.

Owners and managers of small businesses in Canada are expecting business conditions to remain the same or improve during the next 12 months, according to results of the Small Business Research Board (SBRB) poll released today completed in conjunction with Integrated Business Analysis (IBA).

Of the respondents to the first SBRB poll of businesses in Canada, 85% said they believe the economy will remain the same or improve during the course of the next 12 months, with nearly half of those (42% overall) expecting the economy to get better.

Furthermore, 94% of the respondents predict their revenue will remain the same or increase during this period, with 19% projecting an increase of up to 10% and 35% expecting revenues to grow by more than 10%. Only 6% said they are forecasting lower revenues during the coming 12 months.

Concurrently, the majority of the businesses (52%) intend to grow without adding staff, intending instead to focus on methods for improving productivity. According to the SBRB, 36% said they will add employees, 5% said they will decrease the workforce and 6% remain undecided.

Business owners and managers reported that they will invest more towards improving staff training than in adding staff. Nevertheless, they concur that staff additions are more important than adding or improving automation or technology.

"We are not surprised at the SBRB tabulations which show that finding quality employees is among the most critical issues affecting small businesses. The research clearly demonstrates, however, that owners and managers are committed to providing education and training to current staff in lieu of or in concert with searching outside their walls to meet current and future needs," said Gregg M. Steinberg, President of IBA.

Finding quality employees was the third greatest issue impacting small businesses in Canada following "taxes" and "economic conditions" respectively.

A full one-third of the businesses (34%) intend to expand during the next 12 to 24 months. They expect to provide more services (22%), expand at current locations (20%), enhance customer service (19%) and add new products (18%). Only 14% said they will expand by adding locations.

This is the first nationwide SBRB study conducted in Canada. The SBRB intends to issue quarterly updates on the views of small businesses in Canada. The SBRB has conducted similar quarterly studies in the U. S. since 2004.

IBA is based in Toronto. IBA, along with its affiliate companies, have more than 1,800 professionals and comprises the largest privately-held provider of management consulting services to small and medium-size businesses in North America.