Three-quarters of business owners would like to invest in
innovation over next year to strengthen their enterprise
TORONTO, Nov. 12, 2015 /CNW/ - With today's competitive
business landscape, Canada's small
business owners say innovation is a top priority in 2016 according
to the latest poll by CIBC (TSX: CM) (NYSE: CM).
While more than three-quarters (77 per cent) of
small business owners say they are likely to invest in business
innovation in the next 12 months, they also cite a lack of time,
capacity, technology and cash flow as the biggest obstacles holding
back their ability to innovate.
"Although some reports suggest that Canada is lagging other nations in business
innovation, our poll shows that 90 per cent of Canadian small
business leaders see innovation as critical to their long-term
success, and many are looking to invest in the next year," says
Shelley Swanlund, Vice President,
Business Banking and Head of Small Business, CIBC.
"Innovation can mean different things to different businesses,"
adds Ms. Swanlund. "Investments in innovation can include finding
ways to evolve business models to meet customers' changing needs,
improving technology to be more efficient, or even uncovering
unique ways to attract and retain top talent."
Poll respondents included a cross-section of small business
owners from all sectors of the economy from professional services
and manufacturing to health care and real estate.
Highlights of the poll include:
- 90 per cent of business owners see innovation as
important to long-term success
- 77 per cent of business owners say they are likely to
invest in innovation in the next 12 months
-
- Very likely (26 per cent)
- Somewhat likely (50 per cent)
- The greatest obstacles to innovation in business are having
enough time (23 per cent) resources (21 per cent) and
cash flow (19 per cent)
- The top overall challenges faced by small businesses include
dealing with changes in the marketplace (38 per cent),
competition (32 per cent) and identifying sources of future
growth (32 per cent)
- When asked what innovation means to them, business owners' top
selections were evolving a business model to meet customers'
changing needs (22 per cent) and using new technologies to
achieve efficiencies (18 per cent)
"Given increasing competition and economic pressures, now more
than ever small business owners need to find new ways to grow," Ms.
Swanlund says. "Investing in innovation can help reduce long-run
costs by creating efficiencies, or help a business open up new
markets by delivering differentiated products or services to meet
clients' ever-evolving needs."
Advice for Small Businesses Looking to Innovate
Having worked with thousands of innovative businesses, CIBC
small business relationship managers are experienced in helping
growing companies succeed. Here are a few tips:
- Have a business plan: Business plans are critical
and should be reviewed and updated annually, especially when you
are contemplating a major change to your business. Having an
up-to-date plan demonstrates that you have fully thought through
your innovation strategy and its implications to the business in
terms of incremental costs in the short run and longer term
benefits.
- Consult with your advisors: Getting a point of view from
external partners, such as your relationship manager or accountant,
gives you an arm's length perspective that can add clarity and
insight as you cultivate fresh ideas all while protecting your
business from unforeseen threats
- Develop a realistic financial plan for innovation:
Ensure that you have a financial strategy that supports and
complements your innovation strategy. Consider the implications of
expansion on your cash flow and make sure that your company will
not find itself short of funds during this critical time.
More information for business owners is available online at the
CIBC Small Business Advice Centre.
KEY POLL FINDINGS:
Likeliness to invest in innovation in the next 12 months
Likely
- Very likely (26%)
- Somewhat likely (50%)
|
77%* |
Unlikely
- Not very likely (18%)
- Not likely at all (5%)
|
23% |
*due to rounding
How important innovation is to company's long-term
prosperity:
Important
- Very important (44%)
- Somewhat important (46%)
|
90% |
Not Important
- Not very important (9%)
- Not important at all (n/a)
|
10% |
How business owners feel they compare their peers on
innovation:
Leading |
27% |
The
same |
54% |
Lagging |
15% |
Greatest obstacle to innovation in business:
Don't have time to concentrate on innovation |
23% |
Don't have the capacity/resources, staff,
knowledge, technology/operations to innovate |
21% |
Cash flow |
19% |
Financing |
13% |
Don't have processes in place to encourage it
(e.g., incentives, brainstorming sessions, etc.) |
8% |
What business owners say are the greatest challenges their
companies are facing:
Dealing with changes in the marketplace |
38% |
Competition |
32% |
Sources of future growth |
32% |
Management of human resources/talent
acquisition |
25% |
Ensuring adequate cash flow or liquidity |
25% |
Succession/transition planning |
24% |
Sufficient capital to accomplish your
organization's goals and objectives |
19% |
Fluctuating dollar currencies |
19% |
Rising or fluctuating input costs |
18% |
Innovating (e.g., product, process,
resources) |
14% |
Doing business internationally |
6% |
From September 23 to September 25,
2015, an online survey was conducted among 751 randomly
selected Angus Reid Forum panelists who are small business owners.
The margin of error - which measures sampling variability - is +/-
3.58 per cent, 19 times out of 20. Discrepancies in or between
totals are due to rounding.
CIBC Small Business Services
For more than 140 years, CIBC has been providing small business
owners with the advice, services, and support they need to thrive
and grow. CIBC recognizes that the business and personal finances
of small business owners are often intertwined, which can present
both opportunities and challenges. We believe that the best advice
comes from someone who understands your needs as a business owner
and as an individual.
CIBC provides small business owners with the services of a
dedicated CIBC Small Business Advisor, who acts as a single point
of contact for all small business owner needs. This experienced
professional is committed to understanding the business and the
industry in which small business owners operate, as well as their
personal financial goals. CIBC business advisors work with small
business owners to find integrated solutions to help them achieve
their vision for their business and their life.
About CIBC
CIBC is a leading Canadian-based global financial institution with
nearly 11 million personal banking and business clients. Through
our three major business units - Retail and Business Banking,
Wealth Management and Capital Markets - CIBC offers a full range of
products and services through its comprehensive electronic banking
network, banking centres and offices across Canada with offices in the United States and around the world. You
can find other news releases and information about CIBC in our
Media Centre on our corporate website at www.cibc.com.
SOURCE CIBC