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.