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The BMO survey of 855 small business owners, conducted by Decima Research, found that the science and technology sector (82 per cent), manufacturing sector (81 per cent), construction sector (79 per cent), and goods producing industries (78 per cent) were the most likely to have felt the negative impacts of rising gasoline prices.
Companies most heavily involved in importing (70 per cent) and/or exporting (65 per cent) of products and services also felt electricity and natural gas costs negatively impact business.
“Rising energy prices have traditionally been seen by most Canadians as having a personal impact,” said Michelle Field, Vice President Business Banking, BMO Bank of
|
Impact from energy costs |
Total |
BC |
|
|
|
|
Atlantic |
|
Positive impact |
8% |
10% |
13% |
6% |
8% |
5% |
9% |
|
No real impact |
31% |
36% |
21% |
21% |
29% |
40% |
32% |
|
Negative impact |
58% |
54% |
64% |
72% |
60% |
52% |
59% |
|
Refused |
<1%< > |
0% |
0% |
0% |
<1%< > |
0% |
0% |
|
Don't know |
2% |
0% |
1% |
1% |
2% |
3% |
0% |
Surprisingly, the rising Canadian dollar had a modest impact on businesses.
The BMO Bank of
Conversely, the BMO study found that the dollar has had its greatest negative impact on those businesses heavily involved in the exporting of goods and services (66 per cent) and those in the manufacturing sector (28 per cent).
|
Negative impact from rising Canadian dollar exchange rate |
Total |
BC |
|
|
|
|
Atlantic |
|
Negative impact |
18% |
17% |
12% |
15% |
18% |
19% |
22% |
|
% of revenues imported from other countries in the last 12 months |
Total |
BC |
|
|
|
|
Atlantic |
|
0% |
72% |
68% |
70% |
73% |
73% |
71% |
81% |
|
1-50% |
16% |
21% |
20% |
11% |
16% |
12% |
14% |
|
51-100% |
6% |
8% |
7% |
6% |
5% |
8% |
2% |
|
Refused |
<1%< > |
0% |
0% |
0% |
1% |
0% |
0% |
|
Don't know |
5% |
3% |
3% |
10% |
5% |
9% |
3% |
The survey found that coping with challenging business conditions was often handled by the business owner. For those businesses that were negatively impacted by a rising dollar, the primary coping strategy for owners was to raise prices for their products and services (35 per cent) and/or to revamp their business strategy (23 per cent). These decisions display a self-reliant attitude towards handling economic conditions, as opposed to seeking external help like additional financing.
“The true test for any business is how well it weathers economic uncertainty,” added Field. “Developing a contingency plan as well as leveraging the expertise of your accountant, lawyer or professional banker is a great first step in insulating your business against changing market conditions.”
|
% of revenues exported from |
Total |
BC |
|
|
|
|
Atlantic |
|
0% |
87% |
89% |
89% |
90% |
87% |
84% |
88% |
|
1-50% |
6% |
8% |
7% |
4% |
7% |
5% |
5% |
|
51-100% |
2% |
1% |
2% |
2% |
2% |
4% |
4% |
|
Refused |
<1%< > |
0% |
0% |
0% |
<1%< > |
0% |
0% |
|
Don't know |
4% |
2% |
2% |
4% |
3% |
7% |
3% |
A Note About The Poll…
The Poll was conducted by Decima Research on behalf of BMO Bank of
BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of more than $297 billion as at October 31, 2005, and more than 33,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and solutions. BMO Financial Group serves clients across
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