MISSISSAUGA, Ont., Oct. 15, 2007 – Running a small business is harder and more time consuming than expected but, according to the results of a study issued today, most small business owners enjoy their work and have earned the respect of Canadians.
The Ipsos Reid study, comprising a survey of 900 small business owners and a separate poll of 1,842 adult Canadians, was conducted on behalf of HP Canada and the results reviewed by the Canadian Federation of Independent Business (CFIB).
The study found that 42 percent of small business owners surveyed work more than 53 hours per week in their businesses. In addition, 44 percent say they are putting in more effort than they expected when they first started out.
But their efforts are not going unnoticed. The study reported almost all Canadians (97 percent) view entrepreneurs as highly motivated, 93 percent say they are innovative, 92 percent believe them to be reliable, and 96 percent say that they perform quality work.
“Canadians recognize the valuable contribution small businesses make to this country,” said Catherine Swift, president, CFIB. “With 97 percent of the businesses in Canada classified as ‘small,’ Canada is truly a nation of entrepreneurs.”
Small business owners report challenges ranging from finding new customers and markets (59 percent) to handling government regulations and paperwork (42 percent) to dealing with finances (47 percent). Yet a large proportion (63 percent) say they are motivated to continue because they enjoy the work, with 59 percent also saying they stick with it because of the independence it offers.
Most of the Canadians surveyed (91 percent) say they believe it would be a rewarding experience to run their own business or be self-employed, and 89 percent also believe it would be rewarding to work in a small business.
Small businesses turn to technology to gain a competitive edge
In other findings, a vast majority of the small business owners surveyed say that technology provides them with better control of their business operations and is a strategic tool that helps them differentiate themselves and be more competitive.
In fact, 92 percent either strongly or somewhat agree that increased productivity and efficiency is a benefit of technology in the workplace. Seventy-eight percent say technology allows them to have an increased presence in the market, and 77 percent say it allows them to differentiate themselves from the competition.
Small businesses across the country report that mobility (61 percent), data security (71 percent) and data storage (77 percent) are among their top technology priorities. The environment is also becoming an important consideration for small business owners, with 83 percent saying that “green” factors play a role in technology purchasing decisions.
“This study reveals the degree to which SMBs are using technology to gain greater control of their operations,” said Michael McAvoy, director, Small and Mid-sized Business and Commercial Marketing, HP Canada. “The emphasis these small business owners are placing on mobility, data security and data storage reflects an understanding of how information technology can help them gain a true competitive edge.”
Other highlights from the study:
- British Columbians are the most likely to say they started their businesses from scratch (77 percent), while Quebecers are the least likely to indicate this (59 percent).
- Quebecers are the most likely to have inherited the business from a family member (eight percent) or to have purchased it from a family member (eight percent).
- Quebecers are also the most likely to say that they are motivated to keep going because they simply enjoy the work they are doing (69 percent).
- Ontarians are the most likely to cite the independence and control that goes along with owning their own small business as their main motivation (61 percent).
- Men (61 percent) are more likely than women (55 percent) to say they started their own business because they wanted to be their own boss and make their own decisions.
- Atlantic Canadians are the least likely (49 percent) to say that wanting to be their own boss influenced their decision to start their own business.
- Small business owners in Quebec are the most likely to believe that technology helps them to differentiate their business in the marketplace, with 81 percent believing so. In comparison, 72 percent of Atlantic Canadians say that they think technology helps them to differentiate their business.
- Quebecers are also the most likely (49 percent) to say that environmental factors play an important role in technology purchasing decisions. Residents of the Prairie provinces are least likely (28 percent) to say this.
- Quebecers and Ontarians (60 percent) are the most likely to say that mobile devices such as handhelds and notebooks are significant to their business. In comparison, 46 percent of small business owners in Atlantic Canada say this.
About the study
These are the findings of an Ipsos Reid poll conducted on behalf of the Canadian Federation of Independent Business and HP Canada from Aug. 1 - 17, 2007. For the survey, a sample of 900 small business owners who employ 1 to 100 employees was interviewed online. With a sample of this size, the results are considered accurate to within +/- 3.27 percentage points, 19 times out of 20, of what they would have been had the entire adult population of small business owners been interviewed.
From Aug. 3 - 8, 2007, a sample of 1,842 adult Canadians was interviewed online, representing a margin of error within +/- 2.3 percentage points, 19 times out of 20. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were weighted to ensure that the sample’s regional and age/sex composition reflects that of the actual Canadian population according to census data.
About CFIB
CFIB is Canada’s largest association of small- and medium-sized businesses. Encouraging the development of good public policy at the federal, provincial and municipal levels, CFIB represents over 105,000 business owners, who collectively employ 1.25 million Canadians and account for $75 billion in GDP. CFIB’s analysis of the survey is available at www.cfib.ca.
About HP
HP focuses on simplifying technology experiences for all of its customers – from individual consumers to the largest businesses. With a portfolio that spans printing, personal computing, software, services and IT infrastructure, HP is among the world’s largest IT companies, with revenue totaling $100.5 billion for the four fiscal quarters ended July 31, 2007. More information about HP (NYSE: HPQ) is available at www.hp.com.
Note to editors: More news from HP, including links to RSS feeds, is available at www.hp.com/hpinfo/newsroom/.
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