The level of confidence among small business owners edged up slightly in November, suggesting that although the recovery is proceeding, its pace is gradual.

In the latest business confidence survey findings from the Canadian Federation of Independent Business, the Business Barometer index stood at 68.0, as compared with 68.7 in September and 67.0 last month.

The results are based on a survey of more than 900 Canadian small business owners. Measured on a scale between 0 and 100, an index level above 50 means owners expecting their businesses’ performance to be stronger in the next year outnumber those expecting weaker performance. According to past results, index levels normally range between 65 and 75 when the economy is growing.

CFIB’s vice-president of research and chief economist, Ted Mallett, explained that the patterns of relative strength and weakness have remained pretty consistent across regions and industrial sectors.

“Business owners in the finance business services and retail sectors hold the share of optimism, while those involved in transportation, agriculture and hospitality continue to be considerably less upbeat about their prospects,” he said.

The survey shows that employment plans are slowing for small businesses in Canada. Only 11% of business owners said they expect to hire more full-time employees in the next three to four months. Nearly 20% of owners said they plan to cut back on staff.

The biggest challenges facing small businesses in the current environment are insufficient domestic demand and a shortage of working capital.

According to Mallett, businesses in Newfoundland and Labrador, New Brunswick, British Columbia and Alberta are the most optimistic for the coming year – each registering an index score above 70. Business owners in Quebec and Ontario are at the other end of the spectrum with index levels of 60.6 and 66.6, respectively.