Yahoo Finance Two-thirds of small businesses feeling optimistic about 2024 despite uncertainty: Maru survey
Two-thirds of Canadian small businesses are feeling optimistic about their business in 2024, a new Maru Public Opinion survey has found, with 73 per cent expecting to see sales increase this year.
The quarterly survey of more than 800 small-business leaders across Canada provided to Yahoo found that 67 per cent say they are feeling optimistic about their business in 2024, while just 8 per cent are pessimistic and 25 per cent being neutral. More than half of small-business leaders (54 per cent) say they are in better shape now than they were entering 2023, while 10 per cent reported that they are worse off.
"2024 is shaping up to be another strong year for small businesses," Kyle Davies, Maru's senior vice-president and head of syndicated, told Yahoo Finance Canada.
“Small-business leaders have dealt with a lot of major challenges over the past few years. While they remain concerned with the impact rising interest rates, inflation and market instability will have on their business, they enter 2024 feeling largely positive, and more optimistic than they have been over the past three years.”
The survey results come despite concerns about economic uncertainty amid higher interest rates that have been weighing on growth and spending. The Canadian Federation of Independent Business' latest Business Barometer showed that nearly half (48 per cent) of small businesses are reporting challenges with borrowing costs, and nearly half (49 per cent) are facing insufficient demand. However, the survey's long-term confidence index has been steadily rising since November 2023.
The number of business insolvencies in Canada increased in January, more than doubling from last year. The biggest increases were seen in accommodation, retail and construction sectors.
Through 2023, 74 per cent of small businesses said they raised the price on at least one product and 57 per cent introduced at least one new product or service to their offering. While more small businesses (61 per cent) plan on offering new products or services in 2024, slightly fewer (70 per cent) said they anticipate raising prices on at least one product or service this year. More than half (58 per cent) said they plan on hiring in 2024, while 61 per cent said they plan on reducing spending in at least one key area.
"Late in 2023, many small businesses shifted gears from maintenance mode to true growth mode... Growth requires change, so small-business leaders are anticipating a busy 2024," Davies said, noting that most businesses will be adding new products or services and hiring.
Despite the optimism among most business owners, many are grappling with burnout. Of the small-business leaders surveyed, 71 per cent say they are feeling some level of burnout, and 68 per cent say their employees are burned out as well.
"Taking more vacation, investing in productivity technology, and turning down business are three common steps to dealing with burnout. But the most common step being taken is to just try to work through the workload to get ahead," Davies said.
The survey of 802 lead small businesses – defined as having fewer than 100 employees – was conducted between Jan. 24 and Feb. 5. The sample was controlled to target population and regions of the country. A probability sample of this size has an estimated margin of error of +/- 3.5 per cent, 19 times out of 20.
Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.
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