The Scotiabank 2021 Canadian Business Outlook
Report finds 78% of mid-to-large size businesses feel optimistic
about the future of their company post-COVID-19
TORONTO, March 15, 2021 /CNW/ - Revived optimism has
taken hold of many Canadian business owners as the country's
economy moves away from lockdowns and heads towards a post-pandemic
recovery. According to Scotiabank's 2021 Canadian Business Outlook
Report, nearly eight in 10 businesses are feeling optimistic about
the future of their company, with half (53%) anticipating that
their business will change for the better in some way.
Despite lingering apprehensions around the future state of the
economy, the report revealed:
- Over two thirds of businesses (68%) expect to return to
pre-pandemic conditions within six months or less, with most
businesses (81%) planning to make investments during that
time.
- Almost one in four companies (23%) are doing the same as before
the pandemic, with 23% feeling their company is doing better now
than before the crisis. More businesses who feel supported by their
financial institution state their company is doing better now than
pre-COVID-19.
- 63% of businesses cite bank or government assistance programs
like the Canada Emergency Wage
Subsidy (CEWS) and the expanded Canadian Emergency Business Account
(CEBA) as a key source of support during the crisis.
- In the next six months, some of the top investment priorities
for businesses are in technological capabilities (53%) and hiring
more employees (45%).
- The state of the economy (40%) and further government
restrictions due to the COVID-19 pandemic (39%) are the top two
concerns for businesses moving forward.
- 78% of businesses have felt supported by their FIs during the
pandemic, with the majority stating they received financial support
to keep their business afloat.
"Canadian business owners have demonstrated remarkable
resiliency and adaptability throughout the pandemic. In our
conversations with our clients, we've consistently heard that the
pandemic has provided them with an opportunity to re-think their
long-term priorities," said Kevin
Teslyk, Executive Vice President, Canadian Business Banking
for Scotiabank. "With the economy expected to stabilize and grow
over the coming months, I encourage Canadian Businesses to continue
to work with their financial institution as we look to recover in
2021 and beyond."
As Canadian business owners plot their operational strategies
for the year ahead, Scotiabank recommends five key areas for
recovery and growth:
Plan your Liquidity and Cash
Flow: Begin scenario planning for 6-12 months ahead.
Evaluate your cash flow, employee requirements, supply chain and
inventory, and variable and fixed expenses (including additional
costs related to COVID-19, like PPE for employees). Review and
consider reducing non-salary costs that don't impact your product
and service quality.
Invest in your
Workforce: Studies have consistently shown that engaged
employees are more productive. It's important that you continue to
provide support to your employees during and after the pandemic,
while projecting optimism, communicating regularly with your team,
and promoting diversity and inclusion at all levels. Keep investing
in your employees and above all, embrace remote work – it's now a
competitive advantage that can draw new talent on a wider
geographical scale.
Dive into
Digital: Take advantage of the many tools and
resources available to help your business grow its digital
capabilities. Explore opportunities for your business to
incorporate online innovation, and investigate ways to process
customer payments faster, such as Scotiabank's Interac for
business. As your circumstances fluctuate, having agile operating
processes can help you adapt quickly with changing conditions.
Test New Operating Business
Models: Be bold and think of new or innovative ways to operate
'outside of the box'; whether that means expanding in this low
interest rate environment, partnering with other businesses,
mergers or acquisitions, etc. Consider pursuing supply chain
diversification that includes local or multiple suppliers to
increase your operational resiliency.
Reach your Strategic Goals with
a Great Banking Partner: Now is the time to reach out to your
bank. The survey revealed that more businesses who feel supported
by their financial institution state their company is doing better
now than pre-COVID-19. Many financial institutions offer customized
assistance and access to government support programs, and
Scotiabank has a vast network of experienced professionals who have
supported thousands of businesses throughout challenging periods.
Our team offers specialized solutions to help you manage risks,
capitalize on new opportunities, and plan for your future – we are
here to guide and support you throughout your journey with
strategies from recovery to growth.
For more detailed insights, analysis, and guidance, read the
full Scotiabank Canadian Business Outlook Report here and view
the report infographic here.
Methodology: Research conducted by Maru/Blue on behalf of
Scotiabank from February 18-22, 2021
and October 21-November 3, 2020. A
total of 310 and 305 completed surveys respectively were collected
from financial decision makers at Canadian businesses with annual
revenue between $5 million and
$500 million.
About Scotiabank
Scotiabank is a leading bank in the Americas. Guided by our
purpose: "for every future", we help our customers, their families
and their communities achieve success through a broad range of
advice, products and services, including personal and commercial
banking, wealth management and private banking, corporate and
investment banking, and capital markets. With a team of
approximately 90,000 employees and assets of approximately
$1.2 trillion (as at January 31, 2021), Scotiabank trades on the
Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange
(NYSE: BNS). For more information, please visit
http://www.scotiabank.com and follow us on Twitter
@ScotiabankViews.
SOURCE Scotiabank