ATB survey shows quest for growth among province's entrepreneurs
As Alberta’s economy continues to bounceback from the lows of the oil price collapse, the province’s business owners are hungry for growth.
But the biggest challenge faced by Alberta’s entrepreneurs is working capital according to a survey from provincial bank ATB Financial.
Ahead of next week’s Small Business Week, the lender asked owners of small businesses about their challenges and more than half revealed their quest to restore balance sheet liquidity and think positively about preparing for growth.
Despite improvement in the economy, 26% of respondents cited it as the top factor impacting their working capital.
"Cash is king for business owners. This makes working capital especially critical during a downturn, because that's when sales are decreased or customers are taking longer to pay, which limits cash flow," says Teresa Clouston, ATB Executive Vice-president, Business and Agriculture.
Around a third of small business owners said that had tapped their personal savings to supplement working capital while 20% have postponed payments on principal debts.
"While business is certainly personal, business owners should try to avoid dipping into their own savings and instead consider quick, helpful solutions to get them through a crunch," says Clouston. "Some examples include deferring payments, extending amortization dates, consolidating debt and negotiating with suppliers."
Although most entrepreneurs said that have a high understanding working capital, 30% don’t and a similar share have never sought financial advice to better understand effective capital management.
But the biggest challenge faced by Alberta’s entrepreneurs is working capital according to a survey from provincial bank ATB Financial.
Ahead of next week’s Small Business Week, the lender asked owners of small businesses about their challenges and more than half revealed their quest to restore balance sheet liquidity and think positively about preparing for growth.
Despite improvement in the economy, 26% of respondents cited it as the top factor impacting their working capital.
"Cash is king for business owners. This makes working capital especially critical during a downturn, because that's when sales are decreased or customers are taking longer to pay, which limits cash flow," says Teresa Clouston, ATB Executive Vice-president, Business and Agriculture.
Around a third of small business owners said that had tapped their personal savings to supplement working capital while 20% have postponed payments on principal debts.
"While business is certainly personal, business owners should try to avoid dipping into their own savings and instead consider quick, helpful solutions to get them through a crunch," says Clouston. "Some examples include deferring payments, extending amortization dates, consolidating debt and negotiating with suppliers."
Although most entrepreneurs said that have a high understanding working capital, 30% don’t and a similar share have never sought financial advice to better understand effective capital management.
