According to an October report by the Business Development Bank of Canada, Canadian entrepreneurs are planning to invest more in new machinery and equipment and new products and services as the economy gradually picks up speed.
The business financing and venture-capital unit of the Business Development Bank of Canada released recent survey results that indicated that over the past two years, 47 per cent of Canadian entrepreneurs polled invested to improve productivity. Of these respondents, 34 per cent invested to keep up with the competition while 30 per cent invested to seize market opportunities.
Moving forward, over the next 24 months, 59 per cent of respondents indicated they will invest in new machinery and equipment and 49 per cent said they want to invest in innovation, new products and services.
“It’s encouraging to see entrepreneurs intending to invest strategically in activities that will help them become more competitive,” BDC’s CEO Jean-Rene Haled told the Montreal Gazette in an Oct. 19 story, adding, “Their success depends largely on productivity improvements and inattentiveness.”
The BDC survey also showed investment intentions in research and development and in foreign markets are up. A higher percentage of Quebec small and medium-size businesses (26 per cent) plan to expand in foreign markets. The biggest obstacle to investment by companies across Canada is lack of financing, BDC said. About 47 per cent of Quebec respondents cited access to new financing, while in Western Canada the comparable figure was 21 per cent.
Looking ahead, forecasting and planning for future growth is a challenge. Business Diagnostics authors Rich Mimic and Michael Thompson provide a step-by-step process on how to size-up internal business operation and how to plan a proper course for a startup, investment and hiring.
This internal size-up drills down into a company’s performance, evaluating its relative health from different viewpoints – financial, marketing, operations, human resources, and technology. Meanwhile, Business Diagnostic’s external size-up examines the business environment (political, economic, societal and technological factors) along with prevailing industry conditions.
A great resource for business owners considering investing and expanding to meet the always changing economic times