A recent poll conducted by the Business Development Bank of Canada found that small business owners are positive about their own future, more so than for the economy or their individual industries. Many find tight credit to be an issue for their companies though.
86% of entrepreneurs surveyed saw growth potential for their companies, but less predicted growth for their industries (75%) and only 60% saw the economy growing in the future. "Entrepreneurs see opportunities where others may see only difficulties," said Edmée Métivier, Executive Vice President of Financing and Consulting at BDC.
Tight credit the culprit
Those surveyed also found that their credit tightening was their biggest obstacle to growing their businesses (70%). The next biggest factor to blame was the recession at 65% of those polled, and fewer pointed to increased fuel costs and material (45% and 40% respectively).
Out of almost half of entrepreneurs polled who have attempted to get credit financing, 34% reported having received it and 40% said they were unsuccessful. The other 25% were still awaiting decisions. But 39% of all have dealt with tight credit as a factor.
In terms of the types of credit sought, the results showed the most wanted to operate a line of credit (70%), while 28% want term loans, 22% business credit cards and 18% commercial mortgages.
Positive for Growth
As far as general growth, 59% of entrepreneurs see the economy's stability and strength as the number one factor that would lead to it, 41% point to the value of the Canadian dollar and 41% look to a strong labour market.
The BDC has a new panel called BDC ViewPoints, whose participants are comprised of entrepreneurs and professionals that are asked to join surveys so they can express their views on policies, products as well as services that affect commercial banking.
In this particular survey, 231 entrepreneurs participated between May 6 and May 20. Results were weighted by the size of each firm and region in order to have the results accurately represent Canadian small and medium-sized businesses.
Detailed survey results are available on BDC's website.
BDC is Canada's business development bank. From 100 offices across the country, BDC promotes entrepreneurship by providing highly tailored financing, venture capital and consulting services to entrepreneurs.