MNP Business Leaders Survey 2018
Greater Vernon
Presented in partnership by:
#MNPbusinessleaders #GVsurvey
• Background
• Research Methodology
• Results
• Panel Discussion
• Q&A
Agenda
• Survey conducted in partnership by MNP and the Greater Vernon
Chamber of Commerce.
• This is the first time the survey has been conducted in Greater
Vernon.
• Modelled after similar surveys conducted by MNP across Canada.
• Other recent surveys completed by MNP in BC include Campbell
River (2017), Comox Valley (2016), Cowichan Valley (2016) and
Terrace (2016).
Introduction and Background
• Short pulse survey designed to provide an economic snapshot of the
local business community and opinions on key local issues.
• Goal to complete 200 surveys of local businesses – 50% Chamber
members and 50% Non-Chamber members.
• Goal is to generate baseline information to generate meaningful
conversation and work to improve the local business climate, helping
local businesses to succeed.
• This initial survey will provide a benchmark for comparison in 2-3
years.
Introduction and Background
Methodology
• The survey was conducted by a third-party market research firm,
PRA Inc. under the guidance of MNP and the Greater Vernon
Chamber of Commerce.
• Telephone interviews were conducted between March 23rd and April
12th, 2018.
• Respondents included: business owners, CEO’s, presidents and
designated senior corporate officers from businesses across all
industry sectors in the Greater Vernon area.
• Results will be posted on the Greater Vernon Chamber of Commerce
and MNP Vernon websites.
Methodology
• Survey participants were randomly selected from a list of 2,150
Greater Vernon business license holders and Chamber members.
• In total, 1,287 businesses were contacted and 200 business leaders
completed the survey.
• Of the 200 respondents,100 were Chamber members and 100 were
from other businesses in the Greater Vernon area.
Methodology
Respondents by Industry
1%
1%
1%
1%
1%
2%
2%
3%
3%
4%
5%
5%
5%
6%
6%
6%
6%
10%
15%
21%
Educational services
Management of companies and enterprises
Information and cultural industries
Utilities
Mining, quarrying, and oil and gas extraction
Travel & Tourism
Administrative and support, waste management and…
Real estate and rental and leasing
Wholesale trade
Automotive / auto repair
Arts, entertainment and recreation
Finance and insurance
Transportation and warehousing
Other services (except public administration)
Health care and social assistance
Manufacturing
Construction
Accommodation and food services
Professional, scientific and technical services
Retail trade
0% 5% 10% 15% 20% 25%
* Respondents could provide more than one answer; totals may sum to more than 100%
Profile of Survey Participants
Where is your business located in the Greater Vernon area?
Downtown Vernon
43%
Vernon North24%
Vernon South8%
Vernon East7%
Coldstream5%
Vernon West3%
Other areas10%
Profile of Survey Participants
How many years has your company been in business?
2 years or less16%
3 to 5 years12%
6 to 10 years15%
11 to 20 years15%
Over 20 years40%
Don't know4%
Profile of Survey Participants
Approximately how many employees (full and part-time) does your
business employ?
0%
5%
10%
15%
20%
25%
30%
35%
40%
None 1-4 5-9 10-19 20-49 50-99 100 or more
Results
Business Performance - Financial
Compared to 12 months ago, how would you describe the financial
performance of your company today?
Better53%
Same30%
Worse11%
Don't Know6%
2018-2019
Business Performance - Employment
In the past 12 months, how has the number of people you employ changed?
Increased35%
Decreased11.5%
Remained the same53%
2017-2018
Business Planning – Business Focus
Which of the following best describes your business plan over the next
five years? Is it:
1%
1%
2%
3%
6%
6%
25%
58%
0% 10% 20% 30% 40% 50% 60% 70%
Sell to employees
Transition business to family
Close the business
Relocate to another community
Unsure
Sell to a third party
Business as usual / no change
Grow / Expand
Business Challenges - Limitations
Businesses can face several factors that might limit growth or success.
Is your business limited by:
Access to capital
Transportation / shipping costs
Property taxes
Affordability of available land / real estate
Federal government regulation and approval processes
Zoning regulations for your land, buildings and structures
Provincial government regulation and approval processes
The image of community (what others think of Vernon)
Lack of skilled labour
Local government regulation and approval processes
Uncertainty about local economic conditions
18%
19%
23%
26%
27%
27%
30%
30%
32%
36%
44%
81%
80%
74%
72%
70%
71%
67%
67%
67%
61%
55%
2%
2%
4%
3%
3%
3%
4%
4%
2%
3%
1%
Yes No Unsure
Business Challenges
What, if any, impact has the local housing market in the Greater Vernon
area had on your business?
No Impact33%
Impact45%
Unsure22%
Business Challenges – Housing Market
Greatest Impacts to Local Businesses
Creating More Business – increase in sales
Difficult to attract / keep staff
Staff / Clients cannot afford housing
Financial – less money to spend due to larger expenses
Business Challenges
Has your organization ever experienced a cyber security breach?
No81%
Yes19%
Nearly 6 in 10 businesses say that external hackers have accessed their
confidential business information over the past year or suspect they might have. *
Business ChallengesDo you currently have, or plan to put in place, security measures and
protocols to protect your organization’s information?
Unsure4%
No24%
Yes, plan to8%
Yes, currently64%
Business Challenges
Does your business currently export products or services? (including on-line sales)
No74%
Outside Canada12%
Outside BC25%
Business Challenges
(IF NO) Within the next 3 years, do you plan to export products or
services outside the province?(including on-line sales)
Already Exporting
27%
No65%
Yes8%
Government Feedback
How important are the following industries and economic activities to the
future economy of the Greater Vernon area?
0%
10%
20%
30%
40%
50%
60%
70%
80%
The tourism industry A vibrant downtown The Kelowna airport The technologyindustry
Improving the roadsystem
Very Important Important Not Important
Lower Taxes (property / business)
Cut bureaucracy / Road block to development
Promote Economic Development & Tourism
Do nothing
What is the one thing the Local Government could do to improve the
business climate in the Greater Vernon area?
Government Feedback
Don’t know / No response
Deal with homelessness
Business Challenges
What impact will the newly announced payroll tax have on your business?
A very negative impact
17%
A somewhat negative impact
34%
No real impact36%
Don't know13%
Business Challenges
What impact would the proposed increase in the minimum wage have on
your business?
A very negative impact
20%
A somewhat negative impact
28%
No real impact49%
Don't know3%
Business Outlook - Financial
Thinking about 12 months from now, financially do you expect your
company to be performing better, about the same, or worse?
Better65%
Same25%
Worse5%
Don't Know5%
2018-2019
In the next 12 months, do you expect the number of people employed by
your business to:
Increase39%
Decrease4%
Remain the Same57%
2018-2019
Business Outlook - Employment
SummaryOverall, the Greater Vernon business community is optimistic.
Summary of Results
Strong financial performance in 2017-2018 leading into 2019
53% of businesses grew over the last year
Business Priority for 2019 is continued growth & expansion
Tourism leading economic driver for Greater Vernon
Business concerns limiting confidence for 2018-2019
Economic uncertainty
Government regulationsand taxes
Attracting & retainingskilled labour
Balancing strong financial performance with overarching concerns.
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