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 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.
Click here for full article.