Entrepreneurs Gradually Regaining Confidence

As the second wave of the COVID-19 pandemic intensifies, Canadian entrepreneurs are gradually regaining confidence in the Canadian economy, despite additional health restrictions, says BDC's ‘2021 Outlook on Canadian Entrepreneurs' Investment’ intentions survey. The survey also finds that a growing number of business owners plan to invest more in 2021 than last year. The mood of Canadian entrepreneurs has improved significantly from the previous quarter, during which more than 50 per cent thought the economy would deteriorate over the next several months. Net business confidence is up by 34 percentage points from the past quarter. The rise in investment intentions is largely due to growing business confidence and an improved sales outlook. The 2021 outlook is seeing as many optimistic (35 per cent) as pessimistic (36 per cent) entrepreneurs, a marked improvement. However, high indebtedness, weak demand, additional containment measures, and news of virus mutations could dampen this renewed optimism. Investment intentions are improving significantly from last year, but they are expected to remain weak in 2021.