Entrepreneurs have high expectations for growth - BDC survey results indicate
46% of business owners target revenue increases of 10% or more

Survey highlights

• A solid majority (78%) of entrepreneurs say it is important to grow their companies.
• Canadian business owners are optimistic about their growth prospects. Almost half of entrepreneurs (46%) target an increase in company revenues of at least 10% next year. But revenue objectives vary by region. In Ontario, 18% of entrepreneurs aim for high revenue growth of 20% or more. In Atlantic Canada, only 3% of business owners are as hopeful.
• Business size and sector of activity have a determining effect on growth ambitions. Owners of companies with 50-499 employees say growth is more important than it is to owners of businesses with 1-4 employees. Entrepreneurs working in the media and cultural sector, manufacturing, and transportation and storage industries are most interested in growth.
• Entrepreneurs believe that improving overall productivity and accessing new markets are the best ways to expand a company.

MONTREAL, Oct. 21 /CNW Telbec/ - The Business Development Bank of Canada (BDC) today released further results of a survey aimed at understanding entrepreneurs' experience and intentions with regard to investment, innovation and growth. Conducted by Angus Reid Public Opinion, the survey showed that 78% of entrepreneurs think it is important to grow their businesses. Only 6% say it is not. The survey results are being released during Small Business Week^®, October 17-23, which celebrates Canadian entrepreneurship.

Forty-six per cent of entrepreneurs aim for annual revenue growth of 10% or more for the next year.

• 22% aim for revenue growth of 10% to 14.9%
• 9% target growth between 15% and 19.9%
• 15% aim for high revenue growth of 20% or more (18% in Ontario; 3% in Atlantic Canada).

"Contrary to some preconceived ideas, the great majority of Canadian entrepreneurs really want to grow," said Jean-René Halde, BDC's President and Chief Executive Officer. "Since we know that 98% of Canadian businesses are small, with less than 100 employees, and that size is often critical when it comes to competing, it is encouraging to see that our entrepreneurs aim for growth."

Business size and sector of activity have a determining effect on growth ambitions. Eighty-nine per cent of entrepreneurs who own companies with 50-499 employees think growth is important, as compared to 82% of owners of companies with 5 to 49 employees and 76% of those who own a business with only 1 to 4 employees. Entrepreneurs working in the media and cultural sector (96%), manufacturing (92%), and transportation and storage industries (90%) are most interested in growth.

Ways to grow a business
Entrepreneurs believe that improving their productivity (23%) and accessing new markets (22%) are the best ways to grow a company. They also think that developing new products and services (16%) and hiring additional skilled workers (16%) can help their companies expand. In terms of regional variations, 27% of Quebec entrepreneurs think developing new products and services is beneficial for growing their companies.

Accessing new markets is particularly important to manufacturers (37%). Hiring additional skilled workers is important for entrepreneurs in the construction industry (29%).

"Entrepreneurs are optimistic by nature. They prefer to see the glass as half full rather than half empty and are not easily discouraged by an unpredictable economy," said Jean-René Halde. "Given the vital role that small and medium-sized businesses play in creating jobs and wealth across Canada, we must redouble our efforts to support entrepreneurs' expansion plans."

Survey methodology
The BDC survey was conducted among the Angus Reid Forum online panel of Canadians, from which entrepreneurs were randomly selected. Canadian business owners with 1 to 499 employees were asked to complete the survey, which was conducted from June 15 to 23 2010. A total of 830 respondents from all provinces and territories completed it (response rate of 33%). The maximum margin of error for a sample size of 830 respondents would be ± 3.4 percentage points at a 95% confidence level. Results were weighted according to region and number of employees in order to be representative of the Canadian SME population.

Detailed survey results are available on BDC's Small Business Week^® website at  www.bdc.ca/en/sbw2010/pages/medias.html .

About BDC
BDC is Canada's business development bank. From more than 100 business centres across the country, BDC promotes entrepreneurship by providing highly tailored financing, venture capital and consulting services to entrepreneurs. www.bdc.ca

^®Small Business Week is a registered trademark of BDC.

For further information:

Geoffrey King
Director, Public Relations, BDC
514 496-4351
[email protected]