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Small business owners have big expectations for 2010
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TORONTO, Oct. 8 /CNW/ - Fifty-seven percent of small business owners in Canada say they are excited or optimistic about 2010. This is despite the fact that the majority of small businesses were negatively affected by the recession, according to the TD Canada Trust Small Business Survey. This second annual survey was conducted to better understand the impact of the recession on small businesses.
"For the TD Canada Trust Small Business Survey, we asked small business owners what keeps them up at night and it is not surprising that the impact of the recession tops the list," says Paul Douglas, Executive Vice President, TD Business Banking. "What is encouraging is that despite the recession, 63% of small business owners say their business performance was either on, or ahead, of projections. This indicates that many small businesses are well positioned to thrive in 2010."
How were small business owners impacted by the recession? Thirty-one percent lost some business, 18% are in more debt than they were 12 months ago, 7% were forced to downsize their operations or staffing and 5% say they came close to bankruptcy or closing. Interestingly, 12% grew their business despite the recession and 2% grew their business because of the recession.
The impact of the recession is evident in how small business owners rate their businesses. In 2009, only 19% of owners gave their business an A or A+, down from 25% in 2008 and 44% gave their business a B, down from 50% in 2008. However, the majority of small business owners say they managed well relative to the competition with 65% saying they fared as well as their main competitors and 28% saying they fared better.
The impact of the recession is still anticipated to be a big issue owners will face in 2010, with 30% naming it as the top challenge for next year, followed by managing cash flow (20%) and managing growth (16%).
"There is no question that that the effects of the recession will continue to be felt well in to 2010, but small businesses that have a well-defined unique selling proposition and are following a sound business plan should be on the right path for growth in the coming year," says Douglas. "Business owners that have concerns can visit their local TD branch and meet with a Small Business Advisor - we can help with everything from cash flow management to succession planning."
Small Business Week, October 18 to 24, is the perfect opportunity to visit a TD branch and learn more about business financing, business plans, and how to start, grow and sustain a small business.
What does 2010 look like for small business owners?
Nine percent of small business owners are excited about 2010 saying it might be their best year yet. The largest group, at 48%, is optimistic, believing 2010 will be a good year. Twenty-seven percent indicated that they anticipate their business to be flat. Fifteen percent of business owners are concerned, believing that 2010 will be another tough year and 2% say they are panicked, not confident that their business can survive another year.
What keeps small business owners up at night?
When small business owners were asked what one thing about their business they think about more than anything else, 31% said it is the impact of the recession, followed by managing cash flow (meeting payroll, paying suppliers) at 28%. These were followed by hiring and retaining talent (8%) and access to credit (5%).
2009 challenges: projected and actual
In the 2008 survey, small business owners anticipated that their biggest business challenges in the coming year would be cash flow (23%) followed by managing growth (20%). In reality, they said their biggest challenges in 2009 were the impact of the recession (32%) followed by cash flow (25%) and managing growth (11%).
What changes did small business owners make in the past year?
Reducing operating costs was the most cited change (40%) that small business owners made in 2009. This was followed by streamlining processes (16%) and faster delivery of product and services (9%). Interestingly, 35% of small business owners made no changes to their company in the past year.
About TD's sponsorship of Small Business Week
Small Business Week is a nation-wide celebration of entrepreneurship, October 18 to 24, 2009, organized by the Business Development Bank of Canada (BDC) to pay tribute to Canadian small business. With the endorsement of the Canadian Chamber of Commerce, organized events such as conferences, trade fairs and seminars provide an opportunity for entrepreneurs to network and exchange ideas to support business growth. TD is a sponsor of Small Business Week and to recognize its small business customers and businesses in the local community, TD is sponsoring SOHO (small office, home office) conferences in Toronto and Vancouver and sponsoring regional events with chambers of commerce and business associations across the country. Visit or call your local branch for details.
If small business owners are not able to attend events, they are encouraged to participate in one of TD Canada Trust's webinar workshops. A list of the workshops can be found at www.tdcanadatrust.com/smallbusiness/webinars.jsp. The next webinar on Unique Selling Proposition is on October 22, 2009 at 12:00 ET.
About the TD Canada Trust Small Business Survey
The TD Canada Trust Small Business Survey polled small business owners from across the country to understand the impact of the recession on small businesses. The survey was conducted by Angus Reid Strategies from September 8 to 14, 2009 with English and French speaking small business owners (defined as business owners with fewer than 20 employees) across Canada using the Angus Reid Forum. The sample size included 1002 men and women.
About TD Bank Financial Group:
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Financial Group. TD Bank Financial Group is the sixth largest bank in North America by branches and serves approximately 17 million customers in four key businesses operating in a number of locations in key financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Insurance; Wealth Management, including TD Waterhouse and an investment in TD Ameritrade; U.S. Personal and Commercial Banking through TD Bank, America's Most Convenient Bank; and Wholesale Banking, including TD Securities. TD Bank Financial Group also ranks among the world's leading online financial services firms, with more than 5.5 million online customers. TD Bank Financial Group had CDN$545 billion in assets on July 31, 2009. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.
For further information: Carolyn Abbass, Karen McCullough, Paradigm Public Relations, (416) 203-2223, email@example.com, firstname.lastname@example.org; Erin Baldwin, TD Bank Financial Group, (416) 308-4061, email@example.com
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