They are also increasingly optimistic about the Canadian economy as a whole, with 89 per cent anticipating growth for the economy in the next 12 months; that's an increase of 20 percentage points from the survey completed in the fall when only 69 per cent expected the Canadian economy to expand.
The Ivey Entrepreneurs Index is based on a short survey of five questions distributed to Fellows of QuantumShift™. Entrepreneurs are asked what they expect will happen in their private companies over the next 12 months, covering their outlook for revenue, profits, hiring, and borrowing. The survey also includes the general question "Do you expect the Canadian economy as a whole to grow?"
"The net increase in overall optimism about the Canadian economy reflected in the spring 2011 Index, relative to fall 2010, captures the forward-looking view of Canadian entrepreneurs. They see positive prospects for their own businesses and they expect growth in the overall economy," said Stewart Thornhill, Executive Director, Pierre L. Morrissette Institute for Entrepreneurship at the Richard Ivey School of Business.
"Entrepreneurs are critical drivers of economic growth in Canada, so it's heartening to see business confidence and their optimism on the rise," said Dennis Fortnum, National Leader, KPMG Enterprise™. "These business owners have taken care of their balance sheets over the past year, strengthening their financial position through improved operating results and taking full advantage of easing credit markets. They have strategically positioned their companies to benefit as our economy strengthens.
" Wendy Tayler, Vice President, Alkan Air Ltd., and a Fellow of QuantumShift, said she expects a strong future for companies that are able to quickly ramp up their growth.
Alkan Air operates charter and air ambulance service covering northern and western Canada and Alaska. Operating out of Yellowknife for more than 30 years, Alkan Air runs 24 hours a day, seven days a week.
"We continue to experience rapid growth in the mining and exploration industries in the North. As a result, the private sector in the territory is seeing unprecedented growth. The next five years are likely to be very prosperous for businesses that can position themselves quickly to participate in the growth," Tayler said.
This is the second release of the semi-annual Index. A baseline for this survey was established in fall 2010. This second release and future releases will measure prospects and trends.
The survey was distributed to 280 entrepreneurs whose companies have average revenue of $30 million with an average of 380 employees. Their businesses have achieved 25 percent average growth annually. The entrepreneurs surveyed are graduates of QuantumShift. Co-founded by the Richard Ivey School of Business and KPMG Enterprise, each year QuantumShift brings together 40 top Canadian entrepreneurs for a week-long leadership and executive development program.
To subscribe to future releases of the Ivey Entrepreneurs Index powered by KPMG Enterprise, please click here.
|
|
April
2011 |
October
2010 |
Change (percentage points) |
|
Do you expect your company's revenue to grow? |
92% |
87% |
+5 |
|
Do you expect your company's profit to grow? |
89% |
84% |
+5 |
|
Do you expect to seek external capital? |
32% |
40% |
-8 |
|
Do you expect to hire additional employees? |
80% |
78% |
+2 |
|
Do you expect the Canadian economy (as a whole) to grow? |
89% |
69% |
+20 |
The Richard Ivey School of Business at The University of Western Ontario is Canada's leading provider of relevant, innovative and comprehensive business education. Drawing on extensive research and business experience, Ivey faculty provide the best classroom experience, equipping graduates with the skills and capabilities they need to tackle the leadership challenges in today's complex business world. Ivey offers world-renowned undergraduate and graduate degree programs as well as Executive Development at campuses in London (Ontario), Toronto and Hong Kong. Visit www.ivey.ca.
KPMG Enterprise is a network of professionals devoted exclusively to helping private companies in Canada. Why is that important for business owners and entrepreneurs? Based on their understanding and experience of what private companies face every day, KPMG Enterprise business advisers can provide proactive and effective advice about financial, business, and operational challenges, ultimately helping owners and entrepreneurs build value in their businesses and grow successful private enterprises. Visit kpmg.ca/enterprise.
QuantumShift is an intense and exclusive leadership development program for Canada's most promising entrepreneurs, co-founded by the Richard Ivey School of Business and KPMG Enterprise in 2004. The program brings an elite group of 40 entrepreneurs together annually for a rigorous five-day developmental experience at the Ivey Business School in London, Ontario. Admission to QuantumShift is by invitation only selected from amongst hundreds of nominations annually. The curriculum explores topics that matter to high growth entrepreneurs. For further information about the program and its Fellows, visit kpmg.ca/quantumshift. Nominations for QuantumShift 2012 open September 5th and close December 2nd, 2011. To nominate an entrepreneur, contact Tracy Holotuk at 416 777 8460.
For more information, please contact: Paul Mitchell, Richard Ivey School of Business, 519 850 2536, pmitchell@ivey.ca; Tracy Holotuk, KPMG Enterprise, 416 777 8460, tholotuk@kpmg.ca; Julie Bannerjea, KPMG Enterprise, 416 777 3243, jbannerjea@kpmg.ca.