A recent poll by RBC suggests that two out of three small business owners plans to invest in their business over the next two years.
The report says, “This investment will be in areas such as new equipment (37 per cent), new technology (29 per cent), new products and services (28 per cent), new employees (11 per cent) and new processes (10 per cent).”
“Most small business owners are investing in their companies, even in an unsettled economy,” said Mike Michell, national director, Small Business, RBC. “Low interest rates are a driving factor, as well as increased business owner awareness that future growth and competitiveness depend on investments today. In fact, seven-in-ten business owners (69 per cent) are confident that the equity they are building in their company will help them meet their future goals.”
34% of small business owners did not invest in the past two years- in areas like technology, equipment, products or services, human resources. The respondents said that this was due to: economic uncertainty (37%); the immediate need was not present (32%) and a lack of capital funding (11%).
“For entrepreneurs unsure about investing in their company because of economic conditions or other circumstances, speaking with their business advisor can help them weigh their options,” adds Michell. “A small business advisor can provide advice to help entrepreneurs build the right financial strategies and take on the challenges of today’s changing business environment.”
Across the country, 66% of small business owners expect to invest in their businesses in the coming couple of years- with the exception of small business owners in Atlantic Canada, where 72% of those surveyed said that they intend to invest.
Some regional differences were not in the fact that small businesses owners intended to invest- but on what they intended to direct their investment towards. In BC, Alberta, the Prairie Provinces and Quebec all indicate that the purchase of new equipment is their top priority. In Ontario and the Atlantic provinces, small business owners felt that their money was best spent on purchasing new technology.