MARKHAM, Ont. — While concerned about some aspects of the economy, Canadian small business owners are becoming more confident about their financial stability, according to a quarterly small business monitor research report from American Express Canada.
The report shows 47 per cent of respondents reported an improvement in their business’ finances, up 14 points from the previous quarter and the biggest improvement in the past year.Small business owners acknowledge they’ve been negatively impacted by rising costs but say they would rather absorb costs than pass them on to customers or employees. “They’d rather reduce overhead costs in general (52 per cent), become more stringent regarding accounts receivable to improve cash flow (48 per cent) or reduce travel and entertainment budgets (36 per cent) to control costs,” said Eric Nielsen, vice-president and general manager of small business services. “Only 20 per cent were willing to reduce perks for customers, 18 per cent were willing to reduce perks for employees and 12 per cent were willing to reduce staff wages or benefits.”
The online survey was conducted between July 22 and Aug. 9, with participation from 720 business owners.
