New data from American Express Canada reveals that Canadian small business owners are entering the last months of the year with a renewed sense of optimism.
The report said 81 per cent small business owners (SBOs) feel that they’re on track to meet their 2024 financial goals, driven largely by improved cash flow health (80 per cent), the introduction of new products and services (71 per cent), and greater access to working capital (65 per cent).
Additionally, 77 per cent of SBOs expect to see an increase in sales this Q4 compared to last year. Another 67 per centreport their business’ performance in Q4 will determine whether they meet their financial goals this year, further underscoring the criticality of this time of year.
Other survey highlights include:
- 84 per cent of SBOs feel that they’re prepared to handle an uptick in business in Q4;
- 64 per cent agree Q4 is typically the busiest time of year for their business;
- 54 per cent typically do most of their business spending/capital injection into their business in Q4; and
- 51 per cent plan to increase their social media marketing to set their business up for success in Q4.
Phanikar Yenamandra, VP of Customer Engagement at American Express, said several key indicators suggest that small business owners are on track to achieve their financial goals.
“Two of the most important factors are access to working capital and the overall stability of cash flow,” he said.
“Amex survey data shows that 80 per cent of small business owners report improved cash flow health this year, while 65 per cent have greater access to working capital. These figures indicate that Canadian small businesses are benefiting from enhanced financial flexibility in 2024. This flexibility allows them to adapt quickly to changing circumstances, manage unexpected expenses, and seize new growth opportunities—critical factors in staying on track with financial goals.
“One thing we can point to specifically is the strong support small businesses are receiving from Canadian consumers, especially during the holiday season. According to our latest Amex Trendex report, which tracks trends in social behavior, gifting, and travel, 57 per cent of consumers plan to shop at small businesses for holiday gifts this year, and nearly two-thirds prefer to receive gifts from small businesses.
“While this support is felt year-round, it becomes especially pronounced during the holidays when the sense of community and giving back is top of mind. The desire to shop local has grown significantly, particularly since the pandemic, as consumers have become more intentional about supporting small businesses.”
Key drivers for optimism
Yenamandra said key drivers of this optimism are improved cash flow and increased access to working capital.
“Reliable and consistent cash flow has long been a major concern for small businesses, and the current environment—where many owners feel more confident in their ability to manage daily operations, absorb unexpected costs, and fund growth—has naturally boosted their outlook,” he said.
“These improvements give owners the confidence to focus on growth rather than survival, which has undoubtedly contributed to their optimism for the months ahead.
“Part of our survey looked at small business owners’ plans for 2025 and beyond, and it’s clear from the data that they’re taking this optimistic outlook with them into the new year. In fact, close to half of small business owners feel confident in their ability to grow their businesses in the year ahead with plans to grow their online presence specifically. This shows that small business owners are not only feeling encouraged to end the year on a high note but are hoping to actualize even more of their business goals in 2025.
“While the current economic environment presents challenges, what continues to impress me is the resilience of small business owners. They have faced adversity before, and they’ve shown time and again that they can weather tough circumstances. The optimism we’re seeing now is rooted in their unwavering commitment to growth and their ability to adapt, no matter what external pressures they face. For many small business owners, the focus remains on delivering value to their customers, and this resilience, coupled with financial flexibility, is what enables them to navigate even the most challenging economic landscapes.”
Related Articles:
