An entrepreneur’s lot is not necessarily a happy one, and it seems likely to become even more strenuous, two new reports indicate.
Eighty per cent of self-employed Canadians believe they have made personal financial sacrifices to keep their businesses running, according to a survey commissioned by mortgage brokerage Mortgage Intelligence Inc.
It found 51 per cent take less vacation than they want, 37 per cent lack medical or dental benefits, nine per cent do not own a home, and 46 per cent think they are falling short in retirement savings.
Toronto-Dominion Bank economists, meanwhile, warn that small businesses face intensifying challenges including fierce competition both locally and abroad, tight urban labour markets and elevated energy and non-labour expenses.
The TD report says small businesses that are domestically focused, benefit from a strong loonie or are exporting overseas can expect solid sales growth in 2008.
“Exporters to the United States, firms that are part of a supply chain of companies that have a U.S.-export focus and those that are adversely affected by a strong currency will face a more difficult sales environment.”
More broadly, “Canada’s entrepreneurs will need all of their skills and talents to look for opportunities to overcome the hurdles,” the report says. “Business-as-usual strategies won’t deliver. Firms will need to find ways to attract talented labour and retain their staffs, and non-monetary factors could be particularly important. Ways of reducing energy and non-labour costs need to be identified. Competing on the basis of price or labour costs is a losing cause. The future is in selling higher quality or more advanced products.”
It concludes: “The bottom line is that creative thinking and flexibility towards new approaches, processes and strategies are called for. Of course, this is easy to say, and extremely hard to do.”
