Economic News/Trends and Analysis — October 22, 2009

National Entrepreneurship Sentiment Survey Reveals Small Businesses Surviving in Economic Downturn

CALGARY, Oct. 22 /CNW/ - It's doom and gloom for most of the economy but not for our nation's entrepreneurs, according to the National Entrepreneurship Sentiment Survey released today by GoForth Institute. The survey indicates that business in the past year has increased for 23% of small businesses in Canada's finance and insurance sector and 19% of small businesses in the healthcare and social assistance sector. Overall, 27% of Canadian small businesses say the downturn in the global economy over the past year has not impacted their business.

"We believe these findings are an encouraging indicator of things to come in the small business community across Canada," said Dr. Leslie Roberts, President of GoForth Institute, "While some slowdown is unavoidable in small business today, entrepreneurs in many sectors are reporting increases in business of between 10 to 23 percent. The numbers are lower than they would be in a healthy economic situation, but any amount of growth is promising."

GoForth Institute partnered with Angus Reid Strategies to create the National Entrepreneurship Sentiment Survey, to be conducted twice yearly. Speaking with over 4,000 entrepreneurs across Canada, the survey is designed to measure areas of opportunity and growth for small business. It will also reveal entrepreneurs' attitudes about their business activity, the economy and other conditions that inform the small business climate in Canada today.

Canada's entrepreneurs are looking ahead to the next year with expectations for improvement. One in four entrepreneurs surveyed reported having sold fewer products or services in the past 12 months, but one in three now expect to sell more products or services in the coming year. Thirty-nine percent of entrepreneurs surveyed expect to create a new product, service or technology.

"These findings prove that the entrepreneurial spirit is still alive and well in Canada, no matter the economic climate," said Dr. Roberts.

The positivity didn't stop there. Even after such a tough year in business, 99% of surveyed entrepreneurs indicated they feel proud when looking at the results they've achieved in their business, and even more felt they are ultimately responsible for the success of their own business. Canadian entrepreneurs feel strongly the future is looking brighter, with 84% of respondents believing whatever happens in their business, they will be able to handle it. Despite the challenges the recession has brought, 60% of Canadian entrepreneurs believe the current global recession is creating new opportunities for small business.

Results are based on a margin of error of plus or minus 2.9%, nineteen times out of twenty.

To learn more about the National Entrepreneurship Sentiment Survey or its key findings, visit GoForth Institute's website at www.goforthinstitute.com.

About GoForth Institute

GoForth Institute is a private, nationwide institute dedicated to entrepreneurial education. As the only centre of its kind in Canada, GoForth Institute provides effective, relevant and timely education and on-going support during venture start-up and growth. GoForth Institute was founded by Dr. Leslie Roberts, a veteran entrepreneur and established leader in entrepreneurship education and research. The institute is driven to help entrepreneurs succeed with knowledge, passion and excellence.

For further information: Sarah Geddes, Sass Communications Inc., T: (403) 802-0200, E: sarah@sasscommunications.com

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