One in four Canadian small business owners have stopped taking a personal salary according to a survey of Canadian small business owners by American Express.
This is just one of the sacrifices that small business owners are making to keep their businesses afloat during these turbulent times according to the American Express Small Business Monitor survey. Other cost-saving strategies include cutting back on expenses (60%), curbing personal spending (48%), and increasing customer value (46%) to improve cash flow and manage their business during the current downturn.
Small business survey respondents with employees have also taken steps to cut expenses such as instituting a hiring freeze (38%), instituting a salary freeze (34%) and reducing employee hours (25%).
On the positive side, however, relatively few (17%) have resorted to laying off staff, and only eight percent believe they may have to consider doing so over the next six months.
Instead, 28 percent expect to be hiring over the next six months, even if it's part-time or contract staff.
And when all is said and done, Canadian small business owners are still positive. While the American Express Small Business Monitor reports that two in five (42%) small business owners are worried things will get worse for their business before it gets better, 26 percent of respondents have concerns about meeting payroll and one in 20 are worried about making it through the next six months, saying bankruptcy is a very real possibility, a full 70 percent say they are confident that their business situation will improve over the next six months.
"While Canadian small business owners acknowledge and clearly feel the impact of today's economy, it's inspiring to see they have faith in their business and are willing to stand behind it through these hard times," said Howard Grosfield, VP & General Manager, Small Business Services, American Express Canada & International.
What about you? Have you cut or stopped taking a personal salary? Cast your vote in the poll to the right.
More on This Story in the News
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This is just one of the sacrifices that small business owners are making to keep their businesses afloat during these turbulent times according to the American Express Small Business Monitor survey. Other cost-saving strategies include cutting back on expenses (60%), curbing personal spending (48%), and increasing customer value (46%) to improve cash flow and manage their business during the current downturn.
Small business survey respondents with employees have also taken steps to cut expenses such as instituting a hiring freeze (38%), instituting a salary freeze (34%) and reducing employee hours (25%).
And when all is said and done, Canadian small business owners are still positive. While the American Express Small Business Monitor reports that two in five (42%) small business owners are worried things will get worse for their business before it gets better, 26 percent of respondents have concerns about meeting payroll and one in 20 are worried about making it through the next six months, saying bankruptcy is a very real possibility, a full 70 percent say they are confident that their business situation will improve over the next six months.
"While Canadian small business owners acknowledge and clearly feel the impact of today's economy, it's inspiring to see they have faith in their business and are willing to stand behind it through these hard times," said Howard Grosfield, VP & General Manager, Small Business Services, American Express Canada & International.
What about you? Have you cut or stopped taking a personal salary? Cast your vote in the poll to the right.
More on This Story in the News
- Entrepreneurs Cut Own Pay to Stay Alive (Simona Covel, The Wall Street Journal).
- 'Stressed-out' small business owners remain positive (CanWest News Service; Financial Post).
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