3 Things to Know About the Upcoming Year
By Shajitha Rajavickneswaran | November 3, 2016
Though facing tough domestic competition, low margins, and a slipping value in the Canadian dollar, entrepreneurs seem to be excited about the upcoming year.
Surveys were conducted by both eBay Canada and Equifax Canada, to look at 3 main things. Optimism, sales expansion, and hiring outlook.
Small businesses were asked: Would they hire more employees? Expand through more sales channels? Would their business even have the funds to survive another year?
Their responses indicated the following:
On the optimism front, 2017 is looking good, with 74% of businesses saying they are either somewhat or very optimistic about the year ahead.
In total, 66% of small businesses operating for less than five years are optimistic about their business prospects for 2017. This was 19% higher than the small businesses who have been operating for over twenty years.
About 28% of small businesses are expecting to increase their number of sales channels in the upcoming year. Others are also looking to enter international markets and begin exporting their products.
The hiring outlook is looking great as well. Currently 3 in 4 businesses say they’re looking to hire.
Their only problem is financing. Almost half the businesses who say they’re looking to hire also mentioned that they don’t have the funds for it.
This led to about 28% of small businesses mentioning how they might use personal collateral to obtain loans or lines of credit.
Although, the results from the eBay survey showed much different results. Only 16% of their survey pool said they’re looking to hire.
The difference in amounts may be due to the nature of businesses surveyed. Equifax surveyed general small businesses while eBay’s survey pool consisted of small businesses and commercial eBay sellers.
Other interesting findings:
- Quebec scored the highest with 79% in the optimism index, while the Atlantic Region scored the lowest at 72%.
- A major challenge experienced by 51% of small businesses is managing cash flow.
- Around 24% of businesses are having problems keeping up with payments. This includes paying suppliers, contractors, and other financial commitments.
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