Despite almost five years of COVID, inflation, skyrocketing interest rates, labour shortage, supply chain snafus and consumer confidence woes, Canadian businesses are unbendingly buoyant about the future.
A survey done to be released in this Small Business Week for accounting and consulting firm KPMG, shows that 92% of Canadian leaders are confident in their company's growth prospects over the next three years.
That's up from 88% last year.
The Private Enterprise Business Survey polled 735 business owners and executives of small and medium-sized companies this summer.
That's not a huge number, but it's meant to be a cross-section and an accurate reflection of how the sector feels about what lies ahead.
When CEOs of big corporations were asked the same question, 76% were bullish.
So, there's a bit of disconnect between what corporate Canada and more entrepreneurial business leaders are thinking.
Anyway, back to the Private Enterprise Business Survey.
"After a period of severe disruption, Canada's small and medium-size business leaders have learned valuable lessons in resiliency and agility, making them more confident in their ability to steer through uncertainty and shield their business from future risk," said KPMG national lead partner Mary Jo Fedy.
90% of leaders feel their companies are more resilient, agile and better able to anticipate and manage economic turbulence due to lessons learned over the last five years.
65% of businesses expect revenue growth of 2.5% or more annually.
88% are spending big money on equipment, machinery, technology, new facilities and training employees in an effort to boost productivity.
86% are ramping up automation and adopting new technologies such as artificial intelligence (AI) to improve efficiencies and address the worker shortage.
Strategies for growth are illustrated on the pie chart below and include AI, other digitalization and connectivity, joint venture or strategic alliances with third parties, organic growth, employee training and hiring top talent, outsourcing, mergers and acquisitions, optimizing supply chains, selling assets and investing in environmental, social and governance initiatives.
There's always a flip side to the coin.
As such, it's not all sunshine and light for Canadian business.
88% of businesses say new taxes are negatively affecting companies and could hinder economic growth.
"Our survey revealed an undercurrent of frustration over the impact of new taxes on businesses who want to see Canadian tax policy become more competitive relative to our major trading partners," said KPMG national private enterprise tax leader Dino Infanti.
"As calls for broad tax reform continue, many business leaders feel the current tax system is deepening Canada's productivity problem and increasing the risk of wealth and jobs leaving the country."
81% of companies identify cybersecurity as the top threat to small and medium-size enterprises, especially in this era of digital transformation, hybrid workforces and AI.
86% of businesses feel more pressure to ensure long-term prosperity.
Thumbnail photo by Kraken Images on Unsplash
