SME Investment and Financing Outlook Survey (BDC Capital)

Summary

• The proportion of SMEs that have used or will use significant resources for growth projects reached 38%, up by 11pts.p.4
• Investment confidence grew as 55% of SMEs planning to invest are confident they will pursue their investment in the next 12 months.p.5
• Financing demand expanded over the summer, with 34% of SMEs requesting financing in the last 3 months.p.6
• Among SMEs that requested financing, 79% were authorized for funding.p.6
• Looking ahead, 25% of SMEs plan to request financing over the next 12 months, with 64% believing it will be easy to obtain.p.6

Key insights

1. 27% of SMEs expect economic conditions in Canada to be better over the next 12 months.p.11
2. 44% of SMEs expect their total sales or revenue to increase over the next 12 months.p.12
3. 21% of SMEs plan to increase their number of employees over the next 12 months.p.13
4. 33% of SMEs expect their company cash flow situation to improve over the next 12 months.p.14
5. 43% of SMEs plan to invest in machinery & equipment over the next 12 months.p.22
6. 48% of SMEs plan to invest in intangible assets including software, IP protection, R&D, marketing, and employee training.p.23
7. 79% of SMEs requesting financing asked for short-term financing options.p.32
8. 47% of SMEs that requested financing sought amounts of less than $100,000.p.34