Having concerns about how to survive Canada’s current economic downturn are commonplace within the business world. Small business owners especially, have expressed worry over declining sales and increased difficulty in maintaining their businesses during the recession.
And while brighter days are promised to be ahead, for most business owners across Canada, the end of the recession cannot come soon enough. There does, however, seem to be some good news on the horizon for small business owners. Dr. Sherry Cooper, chief economist of BMO Capital Markets recently wrote in The Globe and Mail that the number of small businesses in Canada have actually multiplied in spite of the country’s current financial crisis.
“A recent report stated that not only will the majority of Canada’s small businesses survive the recession, but, as the recovery continues, many will become stronger than ever,” says the publication’s website.
According to Cooper, “Today, business understands the importance of maintaining sufficient capital to ride the cyclical bumps.”
A repot from The BMO Financial Group also indicates that Ontario’s Greater Golden Horseshoe region as well as the Ottawa-Gatineau are national “hotbeds” for the growth of small businesses.
Says Cooper: “Whether it’s expanding into unknown markets, refocusing customer bases, or jettisoning non-core businesses, successful enterprises should not be afraid to forego the familiar and embrace the risks that can lead to higher rewards.”
On The Globe and Mail‘s website, Cooper discusses the successes she has seen in Canada’s small business sector during the recession. One of the main factors in such businesses succeeding in today’s financial climate is their abilities to change the landscape of their business by adapting their technology to adjust their procedures and the way they offer their products and services.
She cites a 40-year-old family business who reluctantly put a stop to offering credit to its customers. Although their volumes decreased, their profits increased. Another example she provides is a heavy equipment operator who took advantage of auctions and bankruptcies to upgrade his equipment.
It is Cooper’s belief that Canada has been in a much better position than its G7 counterparts during the current financial crisis. It is recommended then that Canadian business owners work boldly to move into the next decade as leaders in innovation and productivity by investing in their businesses today.