Business owners optimistic

Business owners are more enthusiastic about the future than they were last year, says the the semi-annual BMO Small Business Confidence Report.

It finds the majority (62%) expect 2014 will be a better year, and 55% expect their business will grow. Only 6% predict their businesses will shrink.

Read: Dividends still best for business owners

The report produces an index score that measures the level of confidence small business owners have in the economy. This year, the economic outlook score was 70, up from 63 last fall and 59 this spring.

Owners in B.C. and Alberta are most hopeful (74 and 73, respectively), while those in Ontario, Quebec and the Atlantic all produced scores of 70 and below.

“The well-being of our small business customers is top of mind,” says Steve Murphy, senior vice-president of Commercial Banking at BMO. The report shows “the outlook for businesses next year is [fairly] consistent across the country, so entrepreneurs are feeling supported and encouraged regardless of where they’re located.”

Read: Small biz confidence dips

Benjamin Reitzes, senior economist at BMO Capital Markets adds, “The positive outlook among businesses for 2014 is consistent with our forecast for accelerating growth as we move into next year. An improving U.S. and global economic backdrop is expected to provide a lift to Canadian businesses and the economy as a whole.”

Report highlights:

One-third of owners plan to invest in their business. Upgrading equipment represents the most common type of investment (76%), followed by:

• Hiring more employees (46%)
• Upgrading technology and systems (45%)
• Training employees (45%)
• Lowering overhead costs (16%)

Read: Show business-owning clients your value

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.