Confidence has slipped a notch or two amongst independent business owners in Canada, but it’s still high in BC, says a ‘barometer’ issued by the Canadian Federation of Independent Businesses (CFIB).
Manager of the Ladysmith Chamber of Commerce Mark Drysdale said he hasn’t seen indications or heard about flagging confidence here, but he offered a few suggestions as to why the needle might be shifting.
Some business owners may be a bit edgy over the focus of the Oct. 19 federal election: the economy.
The drop in oil prices, which is hammering the economy in Alberta, is having spin off effects elsewhere, even on Vancouver Island.
“A lot of people on the island are or were employed in the oil patch,” Drysdale said. “Those folks are spending a lot less freely these days and this could be having a significant impact on local business.”
He also noted that the signs of economic recovery through 2013 and 2014 were encouraging, “but that recovery has turned out to be pretty sluggish, leading to a drop in business confidence through 2015.”
All that said, business performance in the Ladysmith area seems to be weathering any negative trends.
“The realtors in town seem to be pretty busy these days and we have had some new business start-ups, so it’s certainly not a doom and gloom scenario right now,” Drysdale reported.
According to the CFIB’s monthly barometer BC’s small business confidence continued its downward trend in September, dropping 1.2 points to 62.9.
“The decline marks the fourth consecutive monthly drop, and the lowest confidence level in two and a half years,” said Richard Truscott, CFIB vice president for BC and Alberta.
But he added the slippage is occurring from a high mark. Measured on a scale between 0 and 100, an index level above 50 means owners expecting their business’ performance to be stronger in the next year outnumber those expecting weaker performance.
An index level of between 65 and 75 means the economy is growing at its potential.
“The level of confidence among entrepreneurs in the province remains fairly good, but there certainly are a few warning signs things may be starting to shift”, Truscott said.
