Canadian entrepreneurs are gradually regaining confidence in the Canadian economy, despite additional health restrictions linked to the COVID-19 pandemic, found the Business Development Bank of Canada’s 2021 Outlook on Canadian Entrepreneurs’ Investment intentions survey. 

Conducted in December, the survey looks at entrepreneurs' level of confidence in the economy, business and hiring outlooks, as well as investment plans over the next 12 months.

The poll results show that Canadian entrepreneurs' mood has improved significantly from the previous quarter, during which more than 50% thought the economy would deteriorate over the next several months. Net business confidence is up by 34 percentage points from the past quarter. The poll also found that a growing number of business owners plan to invest more in 2021 than last year.   

The BDC says the rise in investment intentions is mainly due to growing business confidence and a better sales outlook. 

BDC's 2021 Outlook is seeing as many optimistic (35%) as pessimistic (36%) entrepreneurs, which is a marked improvement. “However, high indebtedness, weak demand, additional containment measures and news of virus mutations could dampen this renewed optimism. Investment intentions are improving significantly from last year, but they are expected to remain weak in 2021,” says the BDC. 

"It's been a difficult year, and although these are the most positive results we've seen since the start of the health crisis, we think business spending will remain weak in the upcoming months," says Pierre Cléroux, BDC's Vice President, Research and Chief Economist. "Our survey paints a picture of an economy that will be in a slow but sustained recovery."