Background and Methodology Background ATB Financial commissioned NRG Research Group to conduct a survey of 300 randomly selected small to mediumsized businesses in Alberta each quarter beginning in Q1 2013 ID: 663675
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Slide1
Alberta Business Beat
Volume 1, March 2013Slide2
Background and MethodologySlide3
Background & Objectives
Background
ATB Financial commissioned NRG Research Group to conduct a survey of 300 randomly selected small- to medium-sized businesses in Alberta each quarter, beginning in Q4-FY2013.
The purpose of the study is to gain an understanding the challenges faced by small- to medium-sized businesses in Alberta, and to track confidence in the business climate in Alberta.
Research Objectives
Measure business owners and managers’ perceptions of the current business climate compared with six months ago, as well as their assessments of what the business climate will be like six months from now;
Understand internal and external factors that may impact small- to medium-sized businesses in Alberta, such as reliance on the price of natural resources or the challenges of various areas of business management;
Gauge the likelihood of investment plans in a number of different areas, such as investment in technology or expansion into new foreign or domestic markets;
Understand potential challenges for small- to medium-sized businesses in growing their businesses; and,
Profile the firmographics as well as respondent demographics for small- to medium-sized businesses in Alberta.Slide4
Methodology
Randomly selected Alberta SME’s
Qualifying Businesses
< 500 employees
<$20 million annual revenues
Must be financial decision makers or influencers
Excluded agriculture, government, financial institutions, media, market research, PR, advertising and communications sectors
Field dates:
January 22-31, 2013
Telephone + online option
Over 3,000 businesses contacts made and 303 completed the survey
Margin of error is +/- 5.8%Slide5
Key InsightsSlide6
Key Insights
Optimism remains high despite talk of the ‘bitumen bubble’.
Alberta’s population is growing quickly and there is still a skilled labour gap.
There a need for succession planning in Alberta.Slide7
Detailed FindingsSlide8
Alberta Business LandscapeSlide9
Make-up of Alberta Businesses
98.1%
employ less than 50 people (Small)
Source: Statistics Canada, Business Register (based on business locations), December 2011.
81.6%
employ less than 5 people (Micro)
1.8%
employ 50 to less than 500 employees (Mid-sized)
Small & Medium Sized Enterprises (SMEs)Slide10
Business ConfidenceSlide11
Optimistic about the future
Alberta Economy
76%
will be better off or the same
Your Company
87%
will be better off or the same
86% of Alberta SMEs agree their business success is tied to the Alberta economy
“HOW DO YOU THINK …………… WILL BE
SIX MONTHS FROM NOW
?”
Source: ATB Financial, Survey on Alberta SMEs, January 2013, 303 respondents.Slide12
The price of oil and gas has a direct impact on a SME’s business success
the
price of a barrel of oil
the
price of a natural gas
70%
48%
% AGREE
THE SUCCESS OF THEIR BUSINESS IS TIED TO ……
Source: ATB Financial, Survey on Alberta SMEs, January 2013, 303 respondents.Slide13
Energy patch optimism
$48.24
billion in capital in 2013
Last energy boom in 2006-08
Since survey, weaker energy prices
Source: Statistics Canada, CANSIM table 029-0005.Slide14
Business GrowthSlide15
Intentional growth is paying off
7 in 10
of SMEs are intentionally trying to grow their business.
OVER THE NEXT 24 MONTHS, DO YOU HAVE ANY PLANS TO…? “% YES”
48%
are seeing growth in their business as a result of their efforts.
16%
are experiencing ‘organic’ growth.
Source: ATB Financial, Survey on Alberta SMEs, January 2013, 303 respondents.Slide16
Business ChallengesSlide17
Challenges for small & mid-size business
Source: ATB Financial, Annual Business Banking Survey, March 2012.Slide18
Where do SMEs spend their time?
Source: ATB Financial, Survey on Alberta SMEs, January 2013, 303 respondents.Slide19
What is causing them grief?
Source: ATB Financial, Survey on Alberta SMEs, January 2013, 303 respondents.
49
%
26
%
17
%
16
%
15%7%12%
25
%
18
%Slide20
Alberta’s population is growing
Source: Statistics-Canada, The Daily, Mar. 20, 2013.
Alberta’s population grew by 3.0 per cent; more than double the national average (1.1 per cent).
Doesn’t this indicate Alberta has a strong labour market?.Slide21
What are the HR & Labour challenges?
Source: ATB, Survey on Alberta SMEs, Jan 2013, with 147 respondents reporting HR & Labour is the most/ second most difficult.Slide22
What are the Sales & Customer Acquisition challenges?
Source: ATB, Survey on Alberta SMEs, Jan 2013, 78 respondents reporting Sales & Customer Acquisition is the most/ second most difficult.Slide23
What are the Strategy & Future Planning challenges?
Source: ATB, Survey on Alberta SMEs, Jan 2013, 75 respondents reporting Strategy & Future Planning is the most/ second most difficult.Slide24
Succession planning and Baby Boomers
Sources: 1. ATB, Survey on Alberta SMEs, Jan 2013, 303 respondents & 2. ATB Customer Advisory Panel, Feb/Mar 2013, 284 business panelists.
42%
of SME owner/operators report being 55+ years of age
1
.
Are Alberta SMEs ready for their succession?
=>
Their businesses are 2-5 times more likely to be in the Mature or Winding Down phases.
48%
of ATB Customer Advisory Panel business panelists (aged 55+) do not have a succession plan2.Slide25
What are the IT (hardware & software) challenges?
Source: ATB, Survey on Alberta SMEs, Jan 2013, 55 respondents reporting the area of IT is the most/ second most difficult.Slide26
What are the Operations Management challenges?
Source: ATB, Survey on Alberta SMEs, Jan 2013, 50 respondents reporting Operations Management is the most/ second most difficult.Slide27
What are the Marketing, Advertising and Public Relations challenges?
Source: ATB, Survey on Alberta SMEs, Jan 2013, 49 respondents reporting the area of Marketing, … is the most/ second most difficult.Slide28
What are the Accounting challenges?
Source: ATB, Survey on Alberta SMEs, Jan 2013, 45 respondents reporting the area of Accounting is the most/ second most difficult.Slide29
What are the Risk Management challenges?
Source: ATB, Survey on Alberta SMEs, Jan 2013, 37 respondents reporting Risk Management is the most/ second most difficult.Slide30
What are the Building & Office Admin challenges?
Source: ATB, Survey on Alberta SMEs, Jan 2013, 22 respondents reporting Building & Office Admin is the most/ second most difficult.Slide31
Questions?Slide32
APPENDIX: Business Firmographics
& Respondent DemographicsSlide33
Majority of Alberta SMEs earn revenues in excess of $500,000
Source: ATB Financial, Survey on Alberta SMEs, January 2013, with 303 respondents.
Of the SMEs we surveyed, more than half have fewer than five employees, over six in ten (61%) report earnings in excess of $500,000 in 2012.
Number of Employees
Annual Revenues 2012Slide34
Source: ATB Financial, Survey on Alberta SMEs, January 2013, with 303 respondents.
Business Firmographics
Business Life Stage Phase
Intentional Growth
69% of SMEs are TRYING to grow their businessSlide35
Business Firmographics
Source: ATB Financial, Survey on Alberta SMEs, January 2013, with 303 respondents.
$1MM+
13%
Borrowing Needs
# of Years in Operation
MEAN
24 yearsSlide36
Business Firmographics
Source: ATB Financial, Survey on Alberta SMEs, January 2013, with 303 respondents, responses mentioned by 3% or more are shown.
Industry
Franchise Industry (n=22)
Automotive
4
Retail
4
Beauty & Fitness
2
Energy/ Oil & Gas Services2Financial Services/ Insurance2Health2
Travel, Leisure & Accommodation
2
Non-profit
2
Education
1
Food Services
1
7% of SMEs are franchisesSlide37
Business Firmographics
Source: ATB Financial, Survey on Alberta SMEs, January 2013, with 303 respondents.
Business Location(s)
53% of SMEs only conduct business in Alberta
Business ScopeSlide38
Respondent Demographics
Source: ATB Financial, Survey on Alberta SMEs, January 2013, with 303 respondents, responses mentioned by 3% or more are shown.
42%
55+
Title/ Role
AgeSlide39
Respondent Demographics
Source: ATB Financial, Survey on Alberta SMEs, January 2013, with 303 respondents.
Role in Financial Decisions
GenderSlide40
ATB Business Beat
Email: businessbeat@atb.com
URL: atb.com/businessbeat