Canadian Small Businesses Growing and Confident
Small business activity in Canada outperformed the broader economy in the earlier part of the recovery. Small and medium enterprises benefitted from their largely domestic focus and lack of exposure to international competitiveness and weaker international demand, according to a study published by Canadian Imperial Bank of Commerce (CIBC) this month.
As the economic recovery has advanced, small businesses have lagged the general Canadian economy, yet are still showing growth. The lag is largely due to the resurgence of larger corporations, which have more exposure to global trends and monetary fluctuations.
Since the recession, many Canadian small businesses are becoming larger employers, contributing to a greater-than-normal share of hiring and hiring faster than they have historically. They are also investing in themselves, with half of small businesses contributing about 85% of all small business investment.
The other half of small businesses, while investing less than others, are still confident in their prospects. Fully 72% of small businesses said they were confident in their investment needs. Small businesses’ access to credit has loosened, which will enable them to invest and grow further. As the recovery continues, small businesses will increasingly seek expansion in markets outside Canada.
These factors point toward opportunity for American companies who do business with Canadian small businesses or desire to enter the Canadian market. BCR has the tools to help you evaluate Canadian companies that are your potential customers. Once they become your customer, our Canadian business monitoring services will help you stay in the know on changing credit strength of your Canadian customers. Ask your favorite BCR rep how you can get FREE Canadian business credit monitoring.
Read the full CIBC article at: http://research.cibcwm.com/economic_public/download/if_20141020.pdf