Younger business owners have big expansion plans

Business owners less than 35 years old are twice as likely to be planning a business expansion compared to owners 55 and over, finds a CIBC poll.

The trend suggests younger owners will play a key role in driving Canadian economic growth and highlights the need for a strong business strategy and access to additional capital, says CIBC.

Read: Women entrepreneurs an untapped resource

The poll finds:

• 39% of business owners say they plan to expand in the next three years

• Of those owners, 60% of business owners 35 and under plan to expand, while only 33% of those 55 and over do.

• Businesses in BC were the least likely to be expanding, where only 30% of owners plan to grow their businesses.

When asked why they were not interested in expanding their business, 54% of business owners 55 and over say they are planning to wind down the business and retire.

The top three areas business owners plan to invest are:

• Marketing initiatives (46%)

• Increasing capacity or production (44%)

• Expanding into new markets within Canada (41%)

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Canadian small business owners planning to expand their business over the next three years:

National Average: 39%

BC: 30%

Prairies: 44%

Ontario: 39%

Quebec: 38%

Atlantic: 45%

Owners planning to expand their business over the next three years, by age:

National Average: 39%

Less than 35: 60%

35-54: 40%

55-64: 33%

65+: 30%

Read: How business owners view money, retirement