The top concern for small businesses across Canada is cash flow, according to a TD Canada Trust small business survey conducted in early September.

The survey, which polled 1,000 small business owners across the country, found that cash flow was a top concern for more than a quarter of owners. Also of major concern are rising fuel costs, which was identified as the top challenge for 16% of respondents.

But despite the challenges, 2008 appears to have been a good year for small businesses so far, with nearly 25% of owners grading their business performance as an A or A+, indicating that they have had solid growth or their best year yet.

A third of these top graded performers attributed their great year to innovating with the right products and services at the right time, and 28% said it was due to focusing on what they are good at and outsourcing the rest.

Half of owners gave their business a B grade, indicating that they did as well as they expected. Fewer than a quarter gave their business a C saying that they did not have the year they planned and 4% gave themselves a failing grade.

Looking ahead to 2009, small business owners anticipate that the biggest business challenges will be similar to the ones they face now: cash flow (23%) followed by managing growth (20%). Rising fuel costs was the third most common challenge cited (17%).

The best thing about owning a business, according to respondents, is controlling their own destiny (36%) and having a better work-life balance (31%), while 8% of respondents said making more money is the top perk.

Respondents’ top piece of advice for others wanting to start a business is to raise enough capital before starting: 21% said they would have raised more capital if they started their business today. Another 19% said they would have diversified their services more.

The environment is a top priority for small business owners, with 74% reporting that it is important to run an environmentally responsible business. The biggest barriers to adopting more environmentally friendly measures are cost (44%) and lack of credible industry providers (28%), according to the survey.

The survey results come in advance of the Business Development Bank of Canada’s 29th annual Small Business Week, taking place Oct. 19 to 25. The week will feature events across the country, including seminars, meetings and trade fairs that relate to small business and entrepreneurship.