The Business Development Bank of Canada just released a new study on Canadian entrepreneurs’ investment intentions.
It’s a study that forecasts SME investments in every single region of the country for the year ahead.
In terms of small- and medium-sized businesses in P.E.I., the study finds that 71 per cent are expecting to increase their sales, a dramatic leap over 2016 levels where just 45 per cent of SMEs expected their revenues to increase.
In regards to investment intentions of Canadian entrepreneurs, the study also finds 79 per cent of small- and medium-sized businesses in P.E.I. plan to invest in 2017. The average investment for SMEs is $200,000.
Investment intentions are expected to remain stable. Atlantic provinces intend to invest $4.7 billion, which is on par with 2016 investment.
In P.E.I., 77 per cent of SMEs cite growth as the main reason for investing.
The study indicates that the main obstacle for P.E.I. investment is cited as cash flow at 36 per cent. In comparison, in 2016 lack of confidence in the economy was cited as the main obstacle to investment.
In Canada, SMEs employ 90 per cent of the private sector labour force and contribute 40 per cent of the country’s GDP.