Small business confidence down for sixth consecutive month

Small business confidence in Newfoundland and Labrador fell more than four points to 56.2 in February, according to the latest business barometer survey results released by the Canadian Federation of Independent Business (CFIB).

It is the sixth month small business confidence fell, the CFIB said in a news release.

Confidence in Alberta also continued falling in February, to 48.2.

“Business confidence in Newfoundland and Labrador is currently near levels seen in 2009,” said Vaughn Hammond, director of provincial affairs in Newfoundland and Labrador for CFIB. “It is important, therefore, for the government to look at policies that can help small businesses grow our local economy and get us through this current economic downturn.”

Entrepreneurs’ hiring intentions changed in February, with 12 per cent of respondents planning to add full-time staff, up two points. Businesses that expect to cut back on employees reduced five points to 10 per cent.

Asked about the general state of the economy, 50 per cent of entrepreneurs characterized it as “good” in February, down three points from January. Three per cent of the respondents in February described the general state of the economy as “bad,” an increase of one per cent from January.

Labour shortage was identified as the biggest challenge for small business in Newfoundland and Labrador. Forty-four per cent of entrepreneurs surveyed in Newfoundland and Labrador said a shortage of skilled labour was limiting their sales or production growth.

The national business barometer index decreased in February (56.2) compared to January (63.5). Across Canada, entrepreneurs in Prince Edward Island (72.4) were the most optimistic about the economy and the future prospects for their business, followed by British Columbia (69.1), Nova Scotia (67.7), New Brunswick (64.8), Ontario (60.0), Quebec (58.5), Newfoundland and Labrador (56.2), Manitoba (54.5), Saskatchewan (53.0) and Alberta (48.2).