Friday, November 22, 2024

Economic recovery: SMEs will resume investing in 2022

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Maria Gill
Maria Gill
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The vast majority of Quebec business owners say they are confident in the economic recovery and sales prospects, despite labor shortages and supply chain disruptions.

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At least that’s what a Business Development Bank of Canada (BDC) survey revealed on Wednesday, which indicates that economic uncertainty is an obstacle to investment.

According to the investigation, 81% of small and medium-sized businesses expect economic conditions to improve over the next 12 months, more than the Canadian average of 74%.

The likelihood of a return to recovery before the pandemic spreads leads 85% of business leaders to expect an increase in their sales, while 83% nationwide hold the same view.

For all of Canada, investment intentions are above pre-COVID-19 pandemic levels, with 85% of SMEs expecting their spending to be higher or remain the same over the next year. The rate was 81% in January 2020, before hitting a low of 58% three years later.

In the Maritimes, investment intentions are at a record high with 92% of SMEs planning to maintain or increase their investment in 2022, followed by British Columbia with 90%.

However, labor scarcity remains a concern for businesses, while more than 56% of Quebec SMEs struggle to hire qualified workers.

Another concern is that supply chain disruptions will continue into 2022, although business leaders believe part of the problem should be resolved within a year.

The results show that owners of small and medium-sized businesses have great confidence in the economy, that the level of investment intentions is higher than it was before the crisis, and that one in five small and medium-sized businesses plans to increase their investment in 2022. said Pierre Clero, Vice President, Research and Chief Economist at BDC .

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