June 15, 2004 – Toronto, ON � According to a new Ipsos-Reid survey conducted on behalf of UPS Canada, three quarters (75%) of owners or senior personnel from small and medium businesses are positive about the current environment for small business in Canada. Moreover, 78% expect their business to experience increased profitability in the next five years.
Small and medium business owners and managers see the presence of a skilled workforce (68%), the existing level of economic security (62%), and political stability (54%) as the top three advantages of operating a small business in Canada. Thinking about the main disadvantages of operating a small business in Canada, small and medium business owners and managers cite taxation levels (74%) and government bureaucracy (66%) most often.
One-third of those surveyed claim to do business outside Canada, with the U.S (27%), Western Europe (10%) and Asia (6%) mentioned most often. Expectations for sales growth outside Canada over the next 1-2 years for those operating internationally are modest, with 25% expecting improvements.
Generally, small enterprises do not seem very well prepared for e-business. Less than one-fifth (17%) feel they are adequately funded to support developments in this area, and only 29% believe they have an adequate technical platform in place to support e-business. Finally, just 28% think their employees have a clear understanding of the potential for business through this channel.
Four in ten (37%) owners/managers feel that the Internet will have little or no impact on their business over the next 3-5 years. Those who do imagine impacts were most likely to mention marketing and company exposure (18%), communicating with customers and clients (13%), and growth in sales and profits (10%).
Small business owners/managers rate their main financial institution moderately well. Approximately half agree that they are responsive to their requests (51%), have competitive rates (46%), and that they value customer service (49%). However only one-third (34%) see their main financial institution as a strong partner in business growth.
These are the findings of an Ipsos-Reid/UPS Canada poll conducted from May 6th to May 17th, 2004. For the telephone survey, a randomly selected sample of 400 owners or senior personnel from small and medium businesses with 1-49 full-time employees. With a sample of this size, the results are considered accurate to within � 4.9 percentage points, 19 times out of 20, of what they would have been had the entire population been polled.
Small Business And Medium Business In Canada Looks Good
Three quarters (75%) of owners or senior personnel from small and medium businesses are positive (21% �very positive,� 54% �somewhat positive�) about the current environment for small business in Canada. A total of 19% say they are �not very positive� and 7% �not at all positive.�
Eight in ten (78%) expect their business to experience increased profitability in the next five years. Two in ten (19%) do not and 3% �don�t know.�
What Are The Advantages And Disadvantages of Conducting Small Business In Canada?
Small and medium business owners and managers see the presence of a skilled workforce (68%), the existing level of economic security (62%), and political stability (54%) as the top three advantages of operating a small business in Canada. Other advantages are infrastructure (50%), access to the US markets (45%), government support for small businesses (45%), and access to venture capital (37%). Another 8% mention some other advantages and 3% �don�t know.�
Thinking about the main disadvantages of operating a small business in Canada, small and medium business owners and managers cite taxation levels (74%) and government bureaucracy (66%) most often. Less than half of respondents feel securing financing (45%), retaining qualified staff (45%), finding qualified staff (43%), government support of small businesses (38%), wage levels (36%), trade agreements (28%), distance from suppliers (25%), or distance from customers (22%) are the main disadvantages of operating a small business in Canada.
Business Outside Canada
One-third of those surveyed claim to do business outside Canada, with the U.S (27%), Western Europe (10%) and Asia (6%) mentioned most often. All other areas were cited by less than 5% of respondents.
One quarter (25%) of respondents see their sales outside Canada growing in the next 1-2 years, while 75% do not.
Small And Medium Businesses Not Prepared For E-Business
Less than one-fifth (17%) feels they are adequately funded to support e-business channels. In fact, 42% strongly disagree with the statement, �at my company we are adequately funded to support e-business channels.�
Just three in ten (29%) believe they have an adequate technical platform in place to support e-business. Four in ten (38%) strongly disagree with the statement, �at my company we have an adequate technical platform to support e-business.�
Finally, just 28% think their employees have a clear understanding of the potential for business through this channel. Three in ten (31%) strongly disagree with the statement, �my employees have a clear vision for the potential for e-business.�
Four in ten (37%) owners/managers feel that the Internet will have little or no impact on their business over the next 3-5 years. Those who do imagine impacts were most likely to mention marketing and company exposure (18%), communicating with customers and clients (13%), and growth in sales and profits (10%). All other responses were cited by less than 10% of respondents.
Financial Institutions Fare Moderately Well
Half (51%) agree that their main financial institution is responsive to their requests. Two in ten (21%) disagree and 29% are neutral.
Half (49%) think they value customer service. One-quarter (25%) disagrees and another 26% are neutral.
Nearly half (46%) agree that they have competitive rates. One-quarter (24%) disagrees and 30% are neutral.
One-third (34%) sees their main financial institution as a strong partner in business growth. Four in ten (40%) disagree and 27% are neutral.
About Ipsos
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