Healthy outlook

CFIB says N.S. small businesses are optimistic

The method of measuring small business confidence has showed improved optimism among Nova Scotia’s small business owners early in the new year.

The “business barometer” used by the Canadian Federation of Independent Business says the province is just above the national average and is the strongest in Atlantic Canada.

“It’s positive to see Nova Scotia’s small and medium-sized businesses are showing some optimism relative to the regional and national level,” said Jordi Morgan, CFIB’s Atlantic vicepresident.

“This would indicate entrepreneurs are generally feeling positive about the state of business health in the province.”

Short-term employment plans remain weak, with 11 per cent of businesses looking to hire and seven per cent planning to decrease full-time employment.

About 34 per cent of small business owners have told the CFIB the shortage of skilled labour is their main limitation to business growth. The main cost constraints are wage costs (44 per cent) and tax and regulatory costs (59 per cent).

The barometer measures small business confidence on a scale between 0 and 100.

An index level above 50 means business owners are expecting their business’ performance to be stronger in the next year outnumber those expecting weaker performance. An index level of between 65 and 70 means the economy is growing at its potential.

The Nova Scotia index for January came in at 63.9, slightly above the national index at 62.7.

The only areas of the country where business owners were more optimistic than in Nova Scotia were those working in Quebec (71.3) and British Columbia (66.7).

The January survey findings are based on 840 responses, collected from a stratified random sample of CFIB members, to a controlledaccess web survey. Data reflect responses received through Jan. 15. Findings are statistically accurate to plus-or-minus 3.4 per cent, 19 times out of 20.

More details about the business barometer are available at www.cfib.ca.