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Economic recovery: SMEs will resume investing in 2022

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Economic recovery: SMEs will resume investing in 2022

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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