Welcome!

News Feed Item

CIBC Poll: Declining Canadian Dollar has Small Business Owners Worried

As some businesses react by reducing costs or raising prices, most admit they have not taken any steps to protect their business from fluctuations in the dollar

TORONTO, April 9, 2014 /CNW/ - A new CIBC (TSX: CM) (NYSE: CM) poll conducted by Leger finds more than one-third of small business owners are worried about the impact the falling Canadian dollar will have on their business, yet nearly 7 in 10 say they have not taken any steps to protect their business from currency fluctuations.

Key findings of the poll of small business owners are:

  • 36 per cent of small business owners say they are worried about the impact of the falling loonie on their business

  • 65 per cent say they have no plans in place to deal with changes in currency

  • Importers are the most likely business owners to be concerned about a lower Canadian dollar, with 86 per cent of this group expressing concern

  • Within major business sectors, Manufacturing companies are the most concerned about the falling dollar (53 per cent), followed by Wholesale/Retail businesses at 44 per cent

"Our poll shows that some small business owners in Canada are feeling the pinch from the falling loonie, which can impact profits and make it harder to compete in certain industries," says Shelley Swanlund, Vice President, Business Banking and Head of Small Business, CIBC. "Many small businesses have become accustomed to a strong dollar, which may explain why many have not considered steps to protect their cash flow and react to the dollar's decline."

According to the most recent report available from Industry Canada, small businesses contribute as much as 41 per cent to Canada's GDP. While a lower Canadian dollar can benefit some business sectors like exporting and tourism, the impact on small business is often overlooked, says Ms. Swanlund.

Some business owners are raising prices or cutting costs to adapt

Among those small businesses which have taken steps to deal with the impact of the recent decline in the loonie, the CIBC poll finds that the most popular actions include reduced spending (14 per cent), pricing alterations (13 per cent) and sourcing new or alternative clients or suppliers (10 per cent).

"Reducing spending or raising prices are a natural reaction to dealing with a change in cash flow, but may not be sustainable in the long run," says Ms. Swanlund. "There are steps you can take to mitigate the impact of currency fluctuations on your small business through improving your cash flow management, and evaluating your foreign exchange needs to building a plan with your advisor that reduces the impact of a falling dollar on your business."

To prepare for fluctuations in the value of the Canadian dollar, CIBC offers the following tips:

  • Have a currency plan. Small business owners should include in their business plans a strategy to manage currency fluctuations. Your bank can help - for example, CIBC small business advisors work with owners to explore options such as holding US dollar accounts and having access to capital to address fluctuations in cash flow. CIBC also offers online tools such as FX Online, a foreign exchange service for currency purchases, and free business planning tools, such as the CIBC Your Guide to Business Planning, found in the CIBC Small Business Advice Centre.

  • Monitor that plan on an ongoing basis. If Canadian dollar fluctuations could have a significant impact on your business, monitor the environment, discuss with your advisor and make adjustments based on changes in your business needs.

  • Build flexibility into your business model. Currency fluctuations and other unexpected expenses can catch small business owners off guard. Be sure your business can withstand temporary fluctuations in cash flow by having access to an emergency reserve fund, whether it is accumulated savings or a line of credit.

KEY POLL FINDINGS

Percentage of Canadian small business owners worried about the value of the Canadian dollar as it relates to their business, by region:

National         36%
Atlantic Canada        33%
Quebec         27%
Ontario         40%
Manitoba/Saskatchewan     50%
Alberta          33%
British Columbia        40%
       

Percentage of Canadian small business owners who have not taken any steps to protect their business from the fluctuations in the value of the Canadian dollar, by region:

National         65%
Atlantic Canada        90%
Quebec         78%
Ontario         56%
Manitoba/Saskatchewan     67%
Alberta          75%
British Columbia        45%
       

The poll was conducted by Leger through a Web survey from February 12 to 19, 2014 among a representative sample of 500 English- or French-speaking business owners or decision-makers in Canadian companies (not publicly traded or NGO) with 500 employees or less. The results were weighted according to region and number of employees to ensure a sample representative of the entire population under review.

CIBC Small Business Services

For more than 140 years, CIBC has been providing small business owners with the advice, services, and support they need to thrive and grow. CIBC recognizes that the business and personal finances of small business owners are often intertwined, which can present both opportunities and challenges. We believe that the best advice comes from someone who understands your needs as a business owner and as an individual.

CIBC provide small business owners with the services of a dedicated CIBC Small Business Advisor, who acts as a single point of contact for all small business owner needs. This experienced professional is committed to understanding the business and the industry in which small business owners operate, as well as their personal financial goals. CIBC business advisors work with small business owners to find integrated solutions to help them achieve their vision for their business and their life.

About CIBC

CIBC is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, and has offices in the United States and around the world. You can find other news releases and information about CIBC in our Media Centre on our corporate website at www.cibc.com.

SOURCE CIBC

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, discussed how given the magnitude of today's application ...
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone in...