With consistent annual sentiments of confidence and optimism, Canadian private companies have forecasted a 7.6% growth rate at a time when national growth is two per cent, according to early results from Business Insights 2013, PwC’s latest study on the ownership, performance and issues of over 350 Canadian private companies.

The number of private company leaders anticipating growth and expansion has increased since the survey was first conducted in 2005.

“The strong growth outlook is somewhat of a surprise,” says Tahir Ayub, PwC’s Canadian private company services leader.

According to Business Insights 2013, the top three ways private companies indicated they plan to achieve growth and expansion is through: improved sales and marketing campaigns (44%); improved customer experience and retention (38%); development of new products and services (31%).

The majority of Canadian private business leaders look to the domestic market for growth in the next five years. With organic growth as a priority among companies with under $50 million in revenue, respondents overall are focused on expanding their customer base (45%), improving operational effectiveness (44%) and improving customer experience, retention and loyalty (39%) to drive organic growth over the next three years.

The report found that the primary barriers for growth for the next year include: economy/lack of activity (38%); labour shortages/recruitment of skilled staff (28%); and demand for products/services (25%).

These barriers, in addition to increased competition/decreasing market share, are also the same concerns private companies had in the last 12 months.

Ayub says, “With surveyors setting an aggressive targeted growth rate, achieving this mainly through local expansion may not be feasible based on the concerns identified in the survey results.”

The Business Insights findings also suggest that the economy is viewed as both a source of optimism (37%) and a concern for business leaders. Ayub explains, “While private business leaders are confident, the past five years have educated the business community that nothing is certain when it comes to the economy and a downshift would always be a major threat to growth.”