Over Half of Canadian Entrepreneurs Have Seen Growth in Their Businesses Since Establishment: BMO Report
OREANDA-NEWS. November 05, 2015. A new report on Canadian entrepreneurs by BMO Bank of Montreal reveals that business owners in both the small-and micro-business categories have experienced growth in all areas of their businesses since establishment.
The report, conducted by Pollara, found that:
- Most small businesses have seen growth in number of employees (92 per cent) and revenue (90 per cent)
- Most micro businesses have grown their customer base (78 per cent) and revenue (68 per cent)
Canadian Entrepreneurs Have Seen Growth In All Areas of Their Business in Five Years or Less
|Percentage of New Small Businesses That Have Experienced Growth|
|Area of growth||Small Businesses (11-49 employees)||Micro Businesses (1-10 employees)|
|Number of employees||92%||37%|
|Products and services offered||78%||57%|
"As per recent years, businesses with fewer than 50 workers continue to create jobs faster than larger companies, with employment up 1.3 per cent in the past year versus 0.9 per cent for bigger firms," said Sal Guatieri, Senior Economist, BMO Capital Markets. "Supported by low borrowing costs and a weak currency, new and small business entrepreneurs will continue to drive Canada's employment and economy."
John MacAulay, Head of Canadian Commercial Banking, BMO Bank of Montreal, says that it is important that business owners operating in the high-growth market continue to evolve with the overall environment. "BMO is committed to helping provide the resources and advice business owners need to ensure seamless business operations, so that they can focus on other areas including expanding their customer base and product offerings."
Majority of Business Owners Agree a Business Plan is Fundamental for Success
The report also revealed that almost three quarters of both small and micro-business owners currently operate under a business plan (71 per cent) and 74 per cent feel a business plan is integral to their success. In addition, almost all business owners (91 per cent) agreed that a business plan is important when seeking funding and investors.
"What small business owners may not realize is that their financial institution can provide resources beyond those of traditional banking," said Mr. MacAulay. "Sitting down with a financial advisor or a small business expert to put both a financial and business plan in place is an integral step in ensuring the success and longevity of small businesses in Canada."
It's All About Who You Know…
Additionally, according to the report, almost all business owners engage in networking (92 per cent) and use several additional tools to help stay connected with the business community, including:
- Online networking tools, including Linkedin and Facebook (73 per cent)
- Seminars and trade shows (54 per cent)
- Membership to an association or industry group (45 per cent)
- Volunteering on a board (24 per cent)
To learn more about BMO business services, visit: bmo.com/business.
Survey results cited in this report are from phone interviews with a random sample of 501 Canadian small business owners or managers conducted between August 20th and September 8th, 2015. The margin of error for this survey is ± 4.4%, 19 times out of 20. Data has been weighted using the latest census information to be representative of Canadians business as a whole.
About BMO Financial Group
Established in 1817, BMO Financial Group is a highly diversified financial services provider based in North America. With total assets of approximately \\$672 billion as of July 31, 2015, and more than 47,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, Wealth Management and BMO Capital Markets.