Despite Recent Economic Turmoil, Almost Half (48%) of Entrepreneurs Believe it's a Good Time to Grow

Toronto, ON - According to a new Ipsos Reid poll, a majority of small business owners do not appear to be overly worried by the current state of the economy. While nearly one half (46%) describes the economy in a negative way, four in ten (36%) describe Canada's economy in a positive way, and another 21% would describe it using a neutral assessment of `stable'.

The results of the survey of small-business owners with fewer than 10 employees, including self-employed Canadians and solopreneurs indicate that 48% believe that the next six months would be a good time to grow or expand their business. Moreover, three quarters (76%) suggest that they could handle having their sales double in the next year alone. Whether planning for growth or overall business success, a majority (51%) is focusing on keeping their current customers as well as gaining new ones, while 16% are focusing ensuring that their business runs as efficiently as possible.

By their actions, small business owners do acknowledge that the economy may be slowing. A majority (52%) says that they are cutting back on unnecessary expenses, while others (31%) are trying to save money by findings ways to reduce their energy and fuel consumption. Some (27%) are trying to pump up their sales by increasing their marketing activities or by working to provide extra value to their customers (47%). Interestingly, only 7% indicate that they are lowering prices for their products or services in order to increase their sales.

Most small business owners are not taking more drastic or pronounced steps to help themselves get through these tougher economic times. Among those who have employees, only 3% say they will consider laying staff off and just 4% will reduce the amount of hours their staff works. In terms of their assessment of the economy, some regional differences have surfaced:

• Those from the prairie provinces (15%) and British Columbia (13%) are most likely to describe the economy as `growing', followed by those in Quebec (8%), Ontario (6%) and Atlantic Canada (3%).
• Conversely, entrepreneurs from Ontario (36%) are the most likely to say that the economy is `going through a rough patch', followed by those in Atlantic Canada (29%), Quebec (26%), British Columbia (25%) and the prairie provinces (17%).

These are the findings of an Ipsos Reid poll conducted on behalf of RBC from August 5 to August 11, 2008. This online survey of 1145 small business owners with fewer than 10 employees and $1million in annual in revenues, including solopreneurs and self-employed Canadians was conducted via the Ipsos I-Say Online Panel, Ipsos Reid's national online panel. An unweighted probability sample of this size, with a 100% response rate, would have an estimated margin of error of +/- 3 percentage points, 19 times out of 20, of what the results would have been had the entire population of small business owners in Canada been polled.

For more information on this news release, please contact:
Sean Simpson
Research Manager
Ipsos Reid
Public Affairs
(416) 572-4474
[email protected]

About Ipsos Reid
Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

To learn more, please visit www.ipsos.ca.

About Ipsos
Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.

Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe.

Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999.

In 2007, Ipsos generated global revenues of e927.2 million ($1.27 billion U.S.).

Visit www.ipsos.com to learn more about Ipsos offerings and capabilities.

Ipsos, listed on the Eurolist of Euronext - Comp B, is part of SBF 120 and the Mid-100 Index, adheres to the Next Prime segment and is eligible to the Deferred Settlement System. Isin FR0000073298, Reuters ISOS.PA, Bloomberg IPS:FP