Almost half (48%) of small business owners surveyed believe their businesses will grow in 2015, according to Toronto-based Bank of Montreal’s (BMO) small business confidence report.
However, only 29% of the surveyed owners expect the economy to improve this year. This number is down from last fall’s survey, when 51% of respondents felt the economy would get better. Notably, this is due to lower optimism levels from oil-dependent regions, such as Alberta and the Prairies.
Even so, an increased number of Canadian business owners are planning to invest more in their businesses. Throughout Canada, 29% of business owners say this will be the case, which is four points higher than the result from last fall’s survey.
“Given the recent economic uncertainty, it is no surprise that Canadian business owners are cautiously optimistic about the year ahead,” says Steve Murphy, head of Canadian commercial banking for BMO. “The bright side is Canadian business owners plan to move forward in growing their businesses, with the majority expecting their revenues to increase this year.”
Business owners looking to expand their operations in the upcoming year should consider taking advantage of historically low interest rates to finance their growth plans, according to Murphy.
BMO’s small business confidence report is a semi-annual survey conducted in the spring and fall. Pollara Strategic Insights produced the results through a telephone survey with 502 Canadian business owners or managers between Feb. 20 and Mar. 5, 2015.