A majority (60%) of Canadian entrepreneurs want to invest in their small- and medium-sized businesses within the next year, finds a Business Development Bank of Canada (BDC) survey.
However, one of the greatest obstacles to growth is money, or lack thereof. In fact, 50% say they have insufficient working capital, and 30% have trouble accessing credit.
“We see that it’s the very small businesses that are struggling the most to get much needed access to credit,” says Pierre Cléroux, chief economist, BDC.
Further, 29% cite the uncertain national economy as another obstacle to growth.
“Although these are encouraging results, we would like to see these good intentions translate into actual investments,” adds Cléroux. “The business environment is changing and entrepreneurs need to invest to stay ahead of the competition.”
Additional findings include:
- Entrepreneurs plan to invest in machinery & equipment, human resources, working capital for marketing, and IT;
- 52% plan to invest $100,000 or less in the next 12 months;
- About one-in-five plan to invest over $500,000.
Read on for tips to help entrepreneur clients with growth.