Small business optimism rebounds

The Canadian Federation of Independent Business's (CFIB) latest monthly “business barometer'' survey showed optimism among small business owners in Saskatchewan improved to an index level of 55 in August, up four points from 51 in July, but remains below the national average of about 60. What: An index level above 50 means owners expecting their business' performance to be stronger in the next year outnumber those expecting weaker performance. Index levels normally range between 65 and 70 when the economy is growing at its potential. August survey findings are based on 603 responses from a random sample of CFIB members to a controlledaccess Internet survey. Findings are statistically accurate to plus or minus 4.0 per cent, 19 times in 20. What’s up, what’s down: The survey found 38 per cent of businesses in Saskatchewan say their overall state of business is good, while 15 per cent say it's bad. Only six per cent of Saskatchewan businesses plan to increase full-time employment in the next three to four months and 11 per cent plan to decrease employment.

Insufficient demand remains the main operating challenge for Saskatchewan small businesses (52 per cent), followed by management skills and time constraints (31 per cent). Major cost pressures for small business include: tax, regulatory costs (47 per cent); wage costs (46 per cent); insurance costs (39 per cent) and banking fees (36 per cent). What it means: “August brought back some measure of Saskatchewan's small business optimism,” said Marilyn Braun-Pollon, CFIB's vice-president for prairie and agribusiness.

“Hiring plans, however, are negative with only six per cent of business owners looking to hire full-time — a record low reading in the province,'' said Braun-Pollon. “The general state of business health has also seen a small drop with only 38 per cent of entrepreneurs saying their business is in good shape, while 15 per cent say it's poor.”