Research shows a majority of business owners under 35 are planning to
expand in the next 3 years, while Boomers say they're holding the line
and eyeing retirement
TORONTO, Oct. 18, 2013 /CNW/ - A new CIBC (TSX: CM) (NYSE: CM) poll by
Leger shows that business owners under 35 years of age are twice as
likely to be planning a business expansion when compared to owners 55
and over. While this trend suggests that younger owners will play a key
role in driving future economic growth, it also highlights the need for
these owners to have a strong business strategy and access to
additional capital to make these plans a reality.
Key findings of the poll include:
-
In total, 39 per cent of Canadian business owners say they plan to expand in the next three
years
-
Within these findings, 60 per cent of business owners 35 and under plan to expand, while only 33 per cent of those 55 and over said the same
-
When asked why they were not interested in expanding their business, the
most common answer among business owners 55 and over was that they are
planning to wind down the business to retire (54 per cent)
-
Regionally, businesses in BC (30 per cent) were the least likely to be expanding.
"There's a clear split in the market, with a new generation of small
business owners looking to fuel growth and expansion, while some
experienced owners are thinking about transitioning out of business and
into retirement," said Jon Hountalas, Executive Vice-President of
Business Banking, CIBC.
Younger Owners Looking to Grow but May Need Advice, Support
With the majority of business owners 35 and under in the survey planning
to expand in the next three years, Mr. Hountalas noted that it is
important to have the capital to invest in the expansion, and the cash
flow to support the business after it grows.
"While it's encouraging to see a new generation of business owners with
plans to drive growth in the next few years, it's important to enter
any growth phase with a plan for both your business and your finances,"
said Mr. Hountalas. "Growth can sometimes take longer than planned, or
can happen faster than you expect, and you need to ensure you have
built in the financial flexibility to deal with either outcome."
Expansion Dollars Going Towards Brand Building, Increased Capacity
When asked where they plan to invest in expanding their business, the
top three responses from Canadian business owners are:
-
Investing in marketing initiatives (46 per cent)
-
Increasing capacity/production (44 per cent)
-
Expanding into new markets within Canada (41 per cent)
"Our poll shows that small businesses with expansion plans are looking
to build their brand, their capacity, and their reach within their
industry," added Mr. Hountalas. "These can be excellent long-term
investments and owners need to understand the time it may take before
these investments start to pay for themselves. This is why having an up
front conversation with an advisor about how to fund this type of
expansion is critical to long term success."
More information for business owners is available online at: https://www.cibc.com/ca/small-business.html.
KEY POLL FINDINGS
Percentage of Canadian small business owners planning to expand their
business over the next three years, by region:
|
|
|
|
National Average
|
39%
|
|
BC
|
30%
|
|
Prairies
|
44%
|
|
Ontario
|
39%
|
|
Quebec
|
38%
|
|
Atlantic
|
45%
|
Percentage of Canadian small business owners planning to expand their
business over the next three years, by age:
|
|
|
|
National Average
|
39%
|
|
Less than 35
|
60%
|
|
35-54
|
40%
|
|
55-64
|
33%
|
|
65+
|
30%
|
Results are based on a CIBC poll conducted online by Leger, which
surveyed 801 decision-makers in Canadian businesses. The associated
margin of error for a probabilistic sample of the same size is
+/-3.46%, 19 times out of 20. Polling was conducted between June 3 and
10, 2013.
CIBC is a leading North American financial institution with nearly 11
million personal banking and business clients. CIBC offers a full range
of products and services through its comprehensive electronic banking
network, branches and offices across Canada, and has offices in the
United States and around the world. You can find other news releases
and information about CIBC in our Press Centre on our corporate website
at www.cibc.com.
SOURCE CIBC
