The Scotiabank 2021 Canadian Business Outlook Report finds 78% of mid-to-large size businesses feel optimistic about the future of their company post-COVID-19
TORONTO, March 15, 2021 /CNW/ - Revived optimism has taken hold of many Canadian business owners as the country's economy moves away from lockdowns and heads towards a post-pandemic recovery. According to Scotiabank's 2021 Canadian Business Outlook Report, nearly eight in 10 businesses are feeling optimistic about the future of their company, with half (53%) anticipating that their business will change for the better in some way.
Despite lingering apprehensions around the future state of the economy, the report revealed:
- Over two thirds of businesses (68%) expect to return to pre-pandemic conditions within six months or less, with most businesses (81%) planning to make investments during that time.
- Almost one in four companies (23%) are doing the same as before the pandemic, with 23% feeling their company is doing better now than before the crisis. More businesses who feel supported by their financial institution state their company is doing better now than pre-COVID-19.
- 63% of businesses cite bank or government assistance programs like the Canada Emergency Wage Subsidy (CEWS) and the expanded Canadian Emergency Business Account (CEBA) as a key source of support during the crisis.
- In the next six months, some of the top investment priorities for businesses are in technological capabilities (53%) and hiring more employees (45%).
- The state of the economy (40%) and further government restrictions due to the COVID-19 pandemic (39%) are the top two concerns for businesses moving forward.
- 78% of businesses have felt supported by their FIs during the pandemic, with the majority stating they received financial support to keep their business afloat.
"Canadian business owners have demonstrated remarkable resiliency and adaptability throughout the pandemic. In our conversations with our clients, we've consistently heard that the pandemic has provided them with an opportunity to re-think their long-term priorities," said Kevin Teslyk, Executive Vice President, Canadian Business Banking for Scotiabank. "With the economy expected to stabilize and grow over the coming months, I encourage Canadian Businesses to continue to work with their financial institution as we look to recover in 2021 and beyond."
As Canadian business owners plot their operational strategies for the year ahead, Scotiabank recommends five key areas for recovery and growth:
Plan your Liquidity and Cash Flow: Begin scenario planning for 6-12 months ahead. Evaluate your cash flow, employee requirements, supply chain and inventory, and variable and fixed expenses (including additional costs related to COVID-19, like PPE for employees). Review and consider reducing non-salary costs that don't impact your product and service quality.
Invest in your Workforce: Studies have consistently shown that engaged employees are more productive. It's important that you continue to provide support to your employees during and after the pandemic, while projecting optimism, communicating regularly with your team, and promoting diversity and inclusion at all levels. Keep investing in your employees and above all, embrace remote work – it's now a competitive advantage that can draw new talent on a wider geographical scale.
Dive into Digital: Take advantage of the many tools and resources available to help your business grow its digital capabilities. Explore opportunities for your business to incorporate online innovation, and investigate ways to process customer payments faster, such as Scotiabank's Interac for business. As your circumstances fluctuate, having agile operating processes can help you adapt quickly with changing conditions.
Test New Operating Business Models: Be bold and think of new or innovative ways to operate 'outside of the box'; whether that means expanding in this low interest rate environment, partnering with other businesses, mergers or acquisitions, etc. Consider pursuing supply chain diversification that includes local or multiple suppliers to increase your operational resiliency.
Reach your Strategic Goals with a Great Banking Partner: Now is the time to reach out to your bank. The survey revealed that more businesses who feel supported by their financial institution state their company is doing better now than pre-COVID-19. Many financial institutions offer customized assistance and access to government support programs, and Scotiabank has a vast network of experienced professionals who have supported thousands of businesses throughout challenging periods. Our team offers specialized solutions to help you manage risks, capitalize on new opportunities, and plan for your future – we are here to guide and support you throughout your journey with strategies from recovery to growth.
For more detailed insights, analysis, and guidance, read the full Scotiabank Canadian Business Outlook Report here and view the report infographic here.
Methodology: Research conducted by Maru/Blue on behalf of Scotiabank from February 18-22, 2021 and October 21-November 3, 2020. A total of 310 and 305 completed surveys respectively were collected from financial decision makers at Canadian businesses with annual revenue between $5 million and $500 million.
About Scotiabank
Scotiabank is a leading bank in the Americas. Guided by our purpose: "for every future", we help our customers, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of approximately 90,000 employees and assets of approximately $1.2 trillion (as at January 31, 2021), Scotiabank trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit http://www.scotiabank.com and follow us on Twitter @ScotiabankViews.
SOURCE Scotiabank
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