The Ivey Entrepreneurs Index shows the economic outlook is upbeat for Canadian entrepreneurs, with 87 per cent expecting their revenues to climb in the next year.
Although optimistic, they are not as bullish on the Canadian economy as a whole, with 69 per cent anticipating growth for the economy in the next 12 months.
The Ivey Entrepreneurs Index is based on a short survey of five questions. Entrepreneurs were asked what they expect will happen in their companies over the next 12 months, covering their outlook for revenue, profits, hiring, and borrowing. The survey also includes the general question: do you expect the Canadian economy as a whole to grow?
This is the first release of the semi-annual index.
“Entrepreneurs are the economic canaries in the coal mine. They are the first to feel constraints when there is an economic downturn and they are the first to turn more optimistic when conditions improve,” says Stewart Thornhill, Executive Director, Pierre L. Morrissette Institute for Entrepreneurship.
“We recognize the importance entrepreneurs play in driving the economic engine in Canada,” says Dennis Fortnum, National Leader, KPMG Enterprise™. “Whether a private company or family business, these leaders ride the whitecap of economic conditions and market uncertainty looking for opportunity to build value in their thriving businesses.”
This first survey establishes a baseline; future releases will measure prospects and trends.
The survey was distributed to 280 entrepreneurs whose companies have average revenue of $30 million with an average of 380 employees. Their businesses have achieved 25 per cent average growth annually. The entrepreneurs surveyed are graduates of QuantumShift™. Co-founded by Richard Ivey School of Business and KPMG Enterprise, each year QuantumShift brings together 40 top Canadian entrepreneurs for a week-long leadership and executive development program.
Tim Miller, Managing Partner of Capri Insurance Services and a Fellow of QuantumShift, said that entrepreneurial organizations are among the first to know what’s happening in the economy.
“If you read in the paper that it’s difficult to acquire capital, typically it’s the entrepreneurs who are the ones that are feeling it. Entrepreneurs are by necessity closer to their customers and employees,” he says.
For further information about the Ivey Entrepreneurs Index powered by KPMG Enterprise, click here.
