Business Owners Not So Rosy About Recovery

Last year, daily news about the nation’s financial status was consistently bleak. In 2010, stories about Canada’s economic recovery appear to be more frequent. A welcome sound to the ears of entrepreneurs across the country, the idea that the economy is on its way back to a level of strength and stability is becoming more and more widespread. Or is it?

Some Canadian business owners are not so quick to jump for joy about the rise in the Canada’s economic status. Many believe that recovery will take longer than expected, as reported by the QMI Agency on website today. Says the report: “The majority of small and medium-sized businesses in Canada don’t believe the economic recovery will fully get underway until the second half of this year, or next, a survey found.”

According to a poll conducted by Grant Thornton, 35% of 300 executives say that they do not expect a turnaround to take place until the latter half of 2010. 22% actually don’t see recovery taking place until next year. Nevertheless, most executives polled felt positively about the direction of Canada’s financial situation and that recovery was still on its way.

One area that those polled were not so optimistic about, however, was the job market. More than half forsee no change to their hiring projections this year, even though they may forecast an increase in their company’s profits. Investment in research and development, new buildings and exports are all areas in which executives also predict will not experience much growth this year.

There were varying opinions, however, based on where in the country these executives were. Those with businesses in Western provinces seemed to be the most optimistic as 84% of poll respondents from that part of the country replied with optimistic responses. Compared to 78% positive outlook replies in Ontario and 68% in Quebec and the Maritimes, the West Coast looks to be in the best mood as it relates to the nation’s financial future.

Perhaps the 2010 Winter Olympic Games in Vancouver are making their projections more rosy. Then again, it could be because their hardest hit sectors are likely to experience the greatest recoveries.

Says Bill Brushett, Grant Thornton’s national leader of privately held business in Canada: “Those sectors that were the hardest hit will experience the strongest recovery in the coming months…Because of this, the Western provinces have good reason to be optimistic because the resources and energy sectors were greatly affected during the recession.”

The owners of small to medium-sized businesses across Canada are generally concerned about the outlook of the nation’s economic status. This only makes Synergy Merchant Services that much more concerned about these owners. We, therefore, make it our mission to assist such owners in the growth of their businesses in an effort to have Canada’s financial future looking brighter and brighter each day.