After being hit hard by the recession, more than half of small business owners in Canada say they are excited or optimistic about 2010, a recent TD Canada Trust survey reveals.

The second annual survey, conducted by Angus Reid Strategies, polled more than 1,000 small business owners in September.

It found that businesses were impacted by the recession in a variety of ways. Nearly one-third of business owners said they lost some business, while 18% are in more debt than they were a year ago, 7% were forced to downsize their operations or staffing and 5% said they came close to bankruptcy or closing.

A hefty 40% of business owners said they reduced operating costs in 2009, while 16% streamlined processes.

The impact of the recession is also evident in how small business owners rate their businesses. In 2009, only 19% of owners gave their business an A or A+, down from 25% in 2008 and 44% gave their business a B, down from 50% in 2008.

But despite the recession, 63% of small business owners said their business performance was either on, or ahead, of projections.

“This indicates that many small businesses are well positioned to thrive in 2010,” said Paul Douglas, executive vice-president of TD Business Banking.

The majority of small business owners also said they managed well relative to the competition, with 65% saying they fared as well as their main competitors and 28% saying they fared better.

Looking to the year ahead, 9% of small business owners said they are excited about 2010, saying it might be their best year yet. The largest group, at 48%, is optimistic, expecting 2010 to be a good year. Another quarter of respondents said they anticipate their business to be flat, while 15% of business owners are concerned, expecting 2010 to be another tough year. Only 2% of business owners are panicked, not confident that their business can survive another year.

The impact of the recession is still anticipated to be a major issue that owners will face in 2010, with 30% naming it as the top challenge for next year, followed by managing cash flow, at 20%, and managing growth, at 16%.

“There is no question that that the effects of the recession will continue to be felt well into 2010, but small businesses that have a well-defined unique selling proposition and are following a sound business plan should be on the right path for growth in the coming year,” said Douglas.

IE