Sask. small business owners the most optimistic

Small business owners in Saskatchewan are once again the most optimistic in Canada, the Canadian Federation of Independent Business (CFIB) said Thursday.

CFIB’s latest monthly “business barometer” revealed optimism among small business owners in Saskatchewan increased to 71.5 from an index of 69.8 in March and well above the national index of 62.9. (An index level of more than 50 means more than half of owners expect their business to perform stronger in the next year, while an index of 65 to 70 is seen when the economy is growing at its potential.)

“Small business owners in Saskatchewan (71.5) and Newfoundland and Labrador (69.4) are the most optimistic in Canada, while the biggest declines in confidence occurred in Alberta (66.7) and Ontario (61.9). Quebec (66.4), British Columbia (65.7), and Manitoba (64.5) are above the national average, while New Brunswick (60.4), Nova Scotia (60.4) and Prince Edward Island (56.4) are below,’’ the report said. The report said 57 per cent of Saskatchewan small business owners rate their overall state of business as good — the highest in Canada and well ahead of the national average of 38 per cent. In addition, 36 per cent plan to increase full-time employment in the next three to four months — the second-highest in Canada and the highest in Saskatchewan in more than four years.

“Another boost in optimism allowed Saskatchewan to regain its number 1 ranking as home to the most optimistic small business owners in Canada in March,” said Marilyn Braun-Pollon, CFIB’s vice-president for Prairie and agri-business.

“We’re pleased the recent Saskatchewan and federal budgets both contained a number of measures that will keep Saskatchewan moving forward. However, we will need to keep an eye on the threat of flooding and the potential impact on Saskatchewan’s economy,” Braun-Pollon said in a news release.

The survey also found the shortage of skilled labour remains the main operating challenge for small business owners in Saskatchewan, cited by 46 per cent of respondents, the highest percentage in Canada. Major cost pressures for small business include: wages (57 per cent); fuel-energy (48 per cent); and taxes-regulations (44 per cent).