CIBC: Canadian business owners optimistic.
BANKING AND CREDIT NEWS-October 15, 2014--CIBC: Canadian business owners optimistic
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15 October 2014 -- While 84% of Canadian business owners are optimistic about the future, most are not thinking about trying to get bigger or tap into new markets with barely a third having expansion plans finds a new poll from Canadian financial services firm CIBC (TSX: CM) (NYSE: CM).
It doesn't appear recent performance is the drag on growth plans as nearly half of all business owners say their financial success is better now than it was last year.
According to the poll, 84% of business owners are optimistic about the future, while 44% rate their financial success as better now than compared to a year ago - up from 32% last year. 37% plan to expand over the next three years.
Despite having cash reserves, many business owners still rely on personal finances to fund expansion. More than 60% of business owners noted that if they were planning to expand, the funds would likely come from sources other than banks or loans against their business - mostly from credit cards, their own pocket or borrowing in their name.
That's despite 79% saying they have a cash reserve set aside to support their business. Swanlund says that tapping into personal savings for business expansion is leading some business owners to be more cautious with their expansion plans.
Although nearly 80% of businesses are sitting on a cash reserve, many are not driving much in the way of a return on these funds with 4 in 10 owners (39%) saying they are not earning any interest on their cash reserve.
CIBC is a has nearly 11m personal banking and business clients.
Find out more at www.cibc.com.
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|Publication:||M2 Banking & Credit News (BCN)|
|Date:||Oct 15, 2014|
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