News Releases

- American Express survey finds stress, financial uncertainty and time
    commitments greatly outdone by fulfillment and rewards that come from
    going it alone -MARKHAM, ON, Dec. 4 /CNW/ - A new research report published by American
Express finds that despite demanding workloads, high stress levels and worries
about the state of the economy Canada's legion of small business owners are
happy and fulfilled and have no regrets about going it alone. In fact nine in
ten say they "love to get up every day and do what I do" and eight in ten
believe they enjoy a better quality of life since starting their own business.
    Confirming their passion and sense of fulfillment in being their own boss
and deep emotional commitment to their business, nearly all small business
owners (91%) believe the rewards and opportunities far outweigh the risks and
challenges of running their own business. When asked if they would do it all
over again, 93 per cent say they would. The cross-Canada survey of 762
business owners was conducted for American Express by Ipsos Reid.
    "This is a unique and resilient group of people that can rightly be
described as the backbone of the Canadian economy," says Howard Grosfield, VP
& General Manager, Small Business Services, American Express Canada &
International. "While they cut across so many industries and professions,
small business owners do share some common characteristics, including their
passion for what they do and the personal fulfillment and sense of purpose
they get from their work."
    Earlier this year, American Express in Canada established a new Small
Business division to develop a range of payment products and services for this
growing sector of the Canadian market. The Business Gold Rewards Card was
launched in September, and was designed specifically with the small business
owner in mind. It offers a range of services including a rewards program that
uniquely combines the ability to pay with points for travel and other rewards,
or to transfer points to airline programs including Aeroplan.
    Financial rewards and the opportunity to make it rich might be commonly
perceived as motivators, but there are several other factors that figure
prominently when business owners reflect on what drives them and keeps them
engaged and motivated, including:-   Independence and control (62%)
    -   Simply loving the work they do (29%)
    -   Personal drive for success (22%)
    -   Commitment to employees and customers (21%)"The study shows that the entrepreneurial flame burns strongly in Canada
and in these troubling times, that gives me a lot of hope and faith in this
sector's ability to be a continuing leader in the Canadian economy" added
Grosfield.
    Grosfield says the small business sector is brimming with confidence and
self esteem and what it needs now is support from the corporate sector,
particularly banks and other financial institutions as widespread concern
about access to funding and credit continue to mount.
    The American Express survey results confirm that running a small business
is indeed a tough job and not for the faint of heart. Owners work, on average,
45 hours a week, with nearly half (45%) working more than 50 hours in a
typical week. Stress levels are high with almost eight-in-ten (78%) saying
they feel the pressure of being the ultimate decision maker and having
accountability for the success of their enterprise.
    Adding to the day-to-day struggles is a "wary but cautious" outlook on
the sagging economy and the future, with nearly seven in 10 small business
owners worried about pension and retirement finances. Nevertheless, the survey
also shows that the exact same business owners accept and embrace these
challenges in anticipation of future rewards.

    Why go it alone?

    For many Canadians, the appeal of owning their own business comes down to
a desire for independence and control, and for 98 per cent of respondents, it
is the primary reason why they continue to do what they do. Other factors
include the ability to do the type of work they most enjoy (88%), and the
opportunity to make better use of their skills and knowledge (46%). In fact,
of those surveyed, nearly 60 per cent say they would "never work for anyone
else again." And when it comes to making money, 39 per cent of small business
owners say it weighed into their decision to go it alone - further indication
that the country's more than two million small business owners are driven by
personal fulfillment and achievement rather than just by the prospect of
financial rewards.

    What is the price of success?

    Independence and work enjoyment sometimes comes at a price with many
conceding that they are workaholics and that they are personally defined by
their business. Many (40%) are unable to take vacation because they believe
there is no else who can keep things running when they are away. And seven in
ten (70%) confess that they have trouble switching off and even when they are
away, they spend time checking in at work to remain connected with what's
going on. Most of these agree that this kind of behaviour is driven mostly out
of personal need to be in control and thrive on being constantly engaged in
the business.

    What does it take to succeed?

    A majority of small business owners identify the willingness to take
risks as a key part of their success, however, only one in 10 of those polled
actually consider themselves to be a high risk taker. Interestingly, small
business owners also believe luck plays a big role. More than half identify a
'breakthrough moment' that helped them take their business to the next level.
Respondents have a practical view of which personal traits help keep their
business on the rails. Among the most important characteristics are being good
with people (86%), being organized (80%) and being driven and committed (76%).

    What lies ahead?

    The American Express survey indicates that small business owners are
unique in their emphasis on placing work above all else, and their approach to
growing their business is also distinctive. Almost all (89%) of those polled
say they want to grow their business, but that doesn't mean they all have
ambitions to make it big. Only 15 per cent aspire to dramatic growth, as
compared with nearly three quarters who prefer a moderate pace. Similar
numbers were found when it comes to potential expansion as 81 per cent
envision growing their business within their own market and only one in 10
have plans to expand internationally.
    With moderate growth and personal fulfillment as guiding principles for
small business owners, it should come as no surprise that 37 per cent of
respondents say they plan to work as long as they can. Less than two in 10
intend to sell and retire, and the same number plan to stay involved while
others run the business.

    Valuable lessons

    It is clear that small business owners believe in their overall business
strategies. In fact, when asked if they would do anything differently if given
the opportunity, nearly 60 per cent said they would take the same approach.
Nevertheless, there are some who would make some subtle changes based on
history. For example, one respondent noted that 'it's hard to collect
outstanding receivables' and felt that more aggressive collection policies may
be key to getting paid quickly in the future. A small percentage of survey
respondents said more education and better market research would factor into
their actions if they could start over but for the most part, small business
owners are satisfied with how they have shaped their business over the years.
    "There is no question that running a small business places significant
demands on the owner, but these findings show that the difficulties pale in
comparison to the rewards," added Grosfield. "As business owners continue to
navigate through both the risks and rewards that come with being the boss,
it's crucial to ensure this critical market segment has access to the very
best products and services built specifically for their needs."

    About the survey

    The above data is the result of a survey comprised of 762 Canadian Small
Business Owners (SBO) completed between August 28 and September 15, 2008
concerning SBO lifestyles. A companion survey was also conducted among 404
Canadian Small Business owners from September 29 to October 6, 2008 to gauge
their reactions to recent events in the economy. This information was released
in October. Both survey sample groups consisted of Canadian small business
owners having between 2 and 100 employees were conducted via Ipsos Reid's
Ipsos I-Say National Online Panel.

    About American Express in Canada

    American Express in Canada operates as Amex Bank of Canada and Amex
Canada Inc. Both are wholly owned subsidiaries of the New York based American
Express Travel Related Services Company, Inc., the largest operating unit of
the American Express Company. Amex Bank of Canada is the issuer of American
Express Cards in Canada. Amex Canada Inc. operates the Corporate Travel,
Travel Services Network and Travellers Cheques divisions in Canada. American
Express opened its first offices in Toronto and Hamilton in 1853 and now
employs 3,700 Canadians coast-to-coast. To find out more about products and
services built specifically for business owners, go to amexforbusiness.ca