Credit monitoring firm Equifax Canada has released a new report indicating that 2017 could be a banner year for Canadian small business hiring growth, with 77 percent of small business owners in a recent poll indicating that they would likely hire for new positions in the next twelve months. According to separate research by Scotiabank, cited by The Globe and Mail, small businesses are creating more net new jobs than large companies. Between the post-recession years of 2010 and 2015, small businesses created more than half a million net new jobs, accounting for 45 per cent of national payroll gains.
This data, while encouraging, shows another side of the Canadian small business picture: namely, that while more and more businesses are set to grow and hire new employees, the supply possibilities for small business financing are not growing at the same pace as the demand. Equifax noted that 43 per cent of those owners surveyed said they want to grow but they have limited access to business financing. Historical data has shown that access to capital ranks consistently among the biggest pain points or concerns for Canadian small business owners and operators.
The fintech sector and alternative banking marketplace are racing to close the gap between that all-important desire for growth and the inefficient or unaffordable systems that prevent Canadian small business owners from accessing the working capital they need to make payments and stay on top of their cash flow cycle. As growth accelerates, the responsiveness of financial providers needs to be ready for each new shift in your business plan. New hires, new equipment, renovations, refreshed product offerings… growth takes many forms, but working with a financial provider who knows your business and its needs will be critical to making the most of your investment in the future.