Small business still okay

Canada's entrepreneurs are doing okay. The National Entrepreneurship Sentiment Survey released recently by GoForth Institute, is showing positive results for small business.

GoForth Institute partnered with Angus Reid Strategies, in creating the National Entrepreneurship Sentiment Survey. The survey is conducted twice yearly. Based on input from over 4,000 entrepreneurs across Canada, the survey is designed to measure areas of growth and opportunity for small business.

Part of the survey, is to discover entrepreneurs' attitudes about their business activity, the economy and other conditions, that affect the small business climate in Canada today.

The amount of business varies from one sector to another. The insurance and finance sector increased by 23%. Social assistance and health care saw an increase of 19%. The survey revealed that 27% of Canadian small businesses, saw no impact on their business from the downturn in the global economy.

Dr. Leslie Roberts, President of GoForth Institute has stated, "We believe these findings are an encouraging indicator of things to come, in the small business community across Canada." He went on to say, "While some slowdown is unavoidable in small business today, entrepreneurs in many sectors, are reporting increases in business of between 10 to 23 percent. The numbers are lower than they would be in a healthy economic situation, but any amount of growth is promising."

The future looks bright

Canada's small business entrepreneurs, are looking ahead to the next year with optimism. The entrepreneurs surveyed, reported that 25% have sold fewer services or products in the last year. There is an expectation by 33% of the entrepreneurs, to do better in the next year. We also see that 39% of the entrepreneurs surveyed, expect to create a new technology, service or product.

On a basic taxpayer level the residents of Ontario and British Columbia will see a higher tax bill. This will impact Ontario the most with the introduction of the harmonized sales tax on July 1. New Brunswick will see their tax bill reduce starting January 1st.

Corporate taxes go from 19% to 18% starting January 1. The working public will end up paying a bit more in the Canada Pension Plan premium and as well for employment insurance premiums. So overall, the future does look bright as we travel the road to economic recovery.

Expansions planned
Another survey done by RBC shows that small business owners are focusing on growth this year. There are about 26% in the start up stage and about 34% plan to expand their business over the next six months.

The best part of the expansions is that only 14% will need credit in the next six months to grow and finance their businesses.
Go Canada!