Amid rising optimism, 33% of Canadian small businesses plan to hire in the next six months
A national survey commissioned by Zensurance.com, a provider of small business insurance, reveals a strong sense of confidence among Canadian small business owners.
The survey shows that 58.5 percent of small businesses have seen their revenues increase since January 2024 compared to the first half of 2023. Specifically, 19.9 percent of businesses reported significant revenue growth, while 38.6 percent experienced moderate improvements.
In addition, one-third of Canadian small businesses (33 percent) plan to hire new employees within the next six months. Furthermore, 23.8 percent are opening a second workplace or office, and 30.4 percent intend to launch new services or products, signalling an optimistic outlook for future growth.
Small business owners expressed high levels of confidence in their future success. A combined 69.6 percent of respondents are confident about their business prospects over the next six months, with 36.4 percent feeling 'very confident' and 33.2 percent feeling 'somewhat confident.'
Additionally, 21.1 percent of respondents reported a significantly positive impact from the current economic conditions, while 19.8 percent noted a moderately positive impact.
Despite the positive sentiment, Canadian small businesses face several challenges. Cybersecurity is the top concern, with 31.9 percent of businesses worried about the risk of a cyber-attack or data breach.
Other significant concerns include theft and shoplifting (30.7 percent), not being paid by customers (30.5 percent), vandalism (26.2 percent), robbery and break-ins (25.4 percent), and the risk of being sued (24.4 percent).
Danish Yusuf, founder, and CEO of Zensurance.com, remarked, “It's wonderful to see Canadian small businesses and entrepreneurs maintaining a positive outlook despite the numerous challenges they face. A comprehensive insurance plan can play a crucial role in helping them stay confident and successful.”
The survey also uncovered a notable gap in business insurance coverage. A surprising 33.6 percent of Canadian small businesses do not have a business insurance policy, which leaves them vulnerable to various risks.
The reasons for not having insurance vary. Specifically, 22.3 percent of respondents rely on homeowner and personal auto insurance, while 21.5 percent believe they do not need it.
Additionally, 20.7 percent admitted they had not thought about it, and 19.9 percent find the process too time-consuming and complicated.
Meanwhile, 16.6 percent believe their business has no liability risks, 16.4 percent think an insurance claim is unlikely to be paid, and 14 percent do not trust insurance companies.
The survey also explored what small business owners would prefer to do if they were not running their businesses.
Some of the top alternative career choices included working in a factory (16.3 percent), delivering food (11.7 percent), driving for ride-sharing services (11.3 percent), and being a retail greeter (10.6 percent).
Other options included working as a sandwich artist (5.9 percent), operating a hot dog stand (7 percent), selling shoes at a mall (8.3 percent), and becoming a professional ticket scalper (8.4 percent).
The survey gathered responses from 1,000 small business owners, entrepreneurs, and self-employed Canadians across various industries such as retail, hospitality, professional consulting, construction, and health and wellness.
