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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%<br>
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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.<br>
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Alberta Business Landscape<br>
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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)<br>
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Business Confidence<br>
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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.<br>
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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.<br>
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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.<br>
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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.<br>
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Business Challenges<br>
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Challenges for small & mid-size business Source: ATB Financial, Annual Business Banking Survey, March 2012.<br>
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Where do SMEs spend their time? Source: ATB Financial, Survey on Alberta SMEs, January 2013, 303 respondents.<br>
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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%<br>
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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?.<br>
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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.<br>
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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.<br>
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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.<br>
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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 age1. 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.<br>
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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.<br>
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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.<br>
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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.<br>
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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.<br>
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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.<br>
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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.<br>
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APPENDIX: Business Firmographics & Respondent Demographics<br>
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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 2012<br>
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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 business<br>
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Business Firmographics Source: ATB Financial, Survey on Alberta SMEs, January 2013, with 303 respondents. $1MM+
13% Borrowing Needs # of Years in Operation MEAN
24 years<br>
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Business Firmographics Source: ATB Financial, Survey on Alberta SMEs, January 2013, with 303 respondents, responses mentioned by 3% or more are shown. Industry 7% of SMEs are franchises<br>
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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 Scope<br>
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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 Age<br>
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Respondent Demographics Source: ATB Financial, Survey on Alberta SMEs, January 2013, with 303 respondents. Role in Financial Decisions Gender<br>
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ATB Business Beat
Email: businessbeat@atb.com
URL: atb.com/businessbeat<br>