SME Investment and Financing Outlook: Survey Highlights (BDC Capital)

Summary

• 54% of SMEs expect economic conditions to deteriorate over the next 12 months.p.3
• 58% of SMEs plan to invest about the same amount or more over the next 12 months.p.4
• 36% of SMEs cite high economic uncertainty as a factor limiting business investment.p.4
• 83% of SMEs that requested financing in the last 3 months were approved.p.5
• 67% of SMEs requesting financing turned to a financial institution.p.5
• 23% of SMEs plan to request financing over the next 12 months.p.5

Key insights

1. 54% of SMEs expect economic conditions to deteriorate over the next 12 months, which represents a 10 percentage point improvement.p.3
2. 65% of surveyed SMEs report being profitable, up 4 percentage points from the previous wave.p.3
3. 85% of SMEs planning to invest are confident they will pursue their investment in the next 12 months.p.4
4. High economic uncertainty remains the main potential factor limiting SME investments at 36%, down 10 percentage points.p.4
5. 83% of SMEs that requested financing in the last 3 months were approved, an 11 percentage point increase.p.5
6. 67% of SMEs that asked for financing turned to a financial institution, while 37% turned to a government program or crown corporation.p.5
7. Among SMEs planning to request financing, 48% plan to do so for growth-related projects, up 8 percentage points.p.5