Canadian entrepreneurs to invest $111 billion in growth plans in 2016: BDC survey

A new study by the Business Development Bank of Canada (BDC) reported that 76% of Canadian entrepreneurs plan to invest a total of $111 billion in their businesses in 2016, an amount similar to what was invested in 2015. Top reasons cited for investing were to fund growth plans (77% of respondents) and to boost productivity or efficiency (75% of respondents). The study also confirms that investing in your business is crucial to improving competitiveness. In British Columbia and the Territories, entrepreneurs plan to invest 14% more than in 2015, while Ontario businesses plan a 2% investment increase. 

In addition, 

  • In terms of value, the largest planned investments were earmarked for commercial real estate projects, with a total of $63 billion allocated for 2016, a 5% increase from last year.
  • Other common investment projects include computer hardware and software purchases as well as website and e-commerce development. The fastest-growing companies are most likely to be planning information technology investments.
  • Three quarters of planned investments come from just 10% of firms. These companies are more likely to export and invest abroad. They have also existed for over 35 years on average and have 20 or more employees.

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