The semi-annual BMO Small Business Confidence Report, released today, shows that business owners across Canada are more optimistic about the future than this time last year. A majority (62 per cent) said they expect 2014 will be a better year than 2013, and 55 per cent expect their business will grow. Only 6 per cent expect their business to shrink.

The BMO Small Business Confidence Report, launched last fall, produces an index score that measures the level of confidence small business owners have in the economy based on a series of key indicators, including how they feel their business is currently performing, if they believe the next year will be a better/worse year for business and if they expect their business will grow/shrink next year. Factoring in these questions, the Economic Outlook Score was 70 – up from 63 last fall and 59 this spring.

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                                  Overall Atlantic Quebec Ontario Alberta BC

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Business Confidence Index Score

 Fall 2013                             70       68     70      70      73 74

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Business Confidence Index Score

 Fall 2012                             63       65     61      63      66 61

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“As we lead up to Small Business Week, the well-being of our small business customers is top of mind. Our semi-annual check-up is showing that business owners in Canada are in good health, and are more optimistic than before,” said Steve Murphy, Senior Vice-President, Commercial Banking, BMO Bank of Montreal. “Particularly noteworthy is the fact that the outlook for business next year is consistent across the country, so entrepreneurs are feeling supported and encouraged regardless of where they’re located.”

 

2014: Better Year for Business

 

The majority of business owners in all parts of the country share this positive outlook, with those in BC and Ontario recording the highest score.

 

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                                 Overall Atlantic Quebec Ontario Alberta  BC

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Believe 2014 will be better for

 business                            62%      59%    60%     65%     58% 66%

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Believe 2014 will be worse for

 business                            10%      16%     8%     11%      6%  6%

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Prospects for Growth

 

The number of businesses that expect their company to grow next year is nearly 10 times that of those who expect to see their company shrink.

 

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                             Overall Atlantic Quebec Ontario Alberta      BC

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Expect business to grow in

 2014                            55%      55%    58%     51%     60%     58%

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Expect business to shrink in                                         greater

 2014                             6%       6%     4%      8%      6% than 1%

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“The positive outlook among businesses for 2014 is consistent with our forecast for accelerating growth as we move into next year,” said Benjamin Reitzes, Senior Economist, BMO Capital Markets. “An improving U.S. and global economic backdrop is expected to provide a lift to Canadian businesses and the economy as a whole.”

 

Investing in 2014

 

One-third plan to invest in their business. Upgrading equipment represents the most common type of investment (76 per cent), followed by:

 

• —  Hiring more employees (46 per cent)
• —  Upgrading technology and systems (45 per cent)
• —  Training employees (45 per cent)
• —  Lowering overhead costs by transitioning to a mobile workforce (16 per  cent)

 

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                                 Overall Atlantic Quebec Ontario Alberta  BC

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Plan to invest more in 2014          31%      31%    24%     33%     40% 36%

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Plan to invest less in 2014          12%      16%    12%     13%      8%  8%

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Canadian business can get a head start with the BMO(R) Biz Starter for Small Business. Offering great value and lots of added benefits, this solution is the perfect choice for the small business owner. Find out more at www.bmo.com/bizstarter.

All results come from a Pollara telephone survey of 301 Canadian business owners, conducted between August 22nd and September 10th, 2013. The margin of error for this survey is +/- 5.6%, 19 times out of 20.