Not a lot of small businesses investing in 2015
BMO survey finds training and online presence are priorities.
TORONTO — Canadian small businesses are being cautious about planned spending money in 2015 with just 25% planning investments.
The BMO Small Business Banking Report reports investments will emphasize employee training (40%) and an online presence (49%).
Business owners in Ontario (55%) and Atlantic provinces (52%) are the most likely to invest in employee training.
More than half (58%) of business owners intend to upgrade their equipment, which is a 25% drop compared to last year. The Atlantic provinces (68%), Ontario and BC (63%), and the Prairie provinces (61%) are the most likely to invest.
Forty-five percent will invest on marketing the businesses’ products or services and 30% will make changes to their products or services.
The survey also revealed a number of financing options:
• 51% rely on loans from financial institutions.
• 39% rely on business credit cards.
• 24% rely on personal credit cards.
• 19% will dip into their personal savings.
• 10% will look to an investor for financial assistance.
• 7% will seek help from friends and family.
The Pollara telephone survey for the Bank o Montreal, which polled 502 Canadian business owners Aug. 11-28, has a margin of error of +/- 4.4%, 19 times out of 20.