Entrepreneurs’ investment intentions on the upswing

BDC survey suggests SMEs will invest in major machinery and equipment, HR, working capital and IT to boost productivity.

October 15, 2012   by PLANT STAFF

MONTREAL— A majority (60%) of Canadian small and medium-sized enterprises (SMEs) say they intend to invest in their businesses within the next 12 months, according to a survey on investment intentions by the Business Development Bank of Canada (BDC).

Entrepreneurs say they plan to invest in machinery and equipment, human resources, working capital for marketing, and IT to boost productivity. They’re investing in new products, developing new markets and increasing production capacity.

Half of Canadian entrepreneurs polled who said they would not invest in the next year say it is not by choice. The main obstacles include insufficient working capital (50%), access to credit (30%) and an uncertain national economy (29%).

BDC’s study also found that 56% of those surveyed would invest in the next 12 months, half (28%) stated they will “definitely” invest and 27% said that they “probably” would invest.

Respondents from Western Canada felt less strongly that the lack of working capital is an impediment to further investment.

Economic uncertainty was viewed as a deterrent to further investment by respondents across all regions.

Fifty-six per cent said that they intended to invest in machinery and equipment and human resources; more than half (54%) want to invest in working capital for marketing, while almost half (46%) in information technology and communication projects. Less than a third intend to invest in land or property.

Click here for more detailed survey results.

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