Survey on Financing and Growth of Small and Medium Enterprises, 2011

A. Screening Questions - Question identifier:A.1

Is your business...

• 1: ...a franchise
  (A franchise is a right granted to an individual or group to market a company's goods or services within a certain territory or location. The franchise has access to the franchisor's proprietary knowledge, processes and trademarks.)
• 2: ...a non-profit organization
  (A non-profit organization is an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Examples include charities (i.e., charitable organizations), trade unions, trade associations and public arts organizations.)
• 3: ...a co-operative
  (A co-operative is a business organization owned and operated by the people who use its services.)
• 4: ...a joint venture
  (A joint venture exists when two or more companies agree to contribute goods, services and/or capital to a common commercial enterprise.)
• 5: ...a government agency
  (A government agency is an administrative unit of government which is responsible for the oversight and administration of specific functions.)

A. Screening Questions - Question identifier:A.2

In 2011, excluding the owner of your business and contract workers, how many of the employees of your business were...

• 1: full-time workers
  (Full-time workers are those who work 30 hours or more per week. Please provide your best estimate.)
• 2: part-time workers
  (Part-time workers are those who work less than 30 hours per week. Please provide your best estimate.)

A. Screening Questions - Question identifier:A.3

Which of the following best describes your position in this business? Are you... (Check one only.)

• 1: the sole owner of this business
• 2: a partner in this business
• 3: the person in charge of finance in this business
• 4: occupying another position in this business

Section B. General Financing - Question identifier:B.1

Did the current owners of this business...
(Select one only.)

• 1: ...start this business from scratch?
• 2: ...buy or acquire this business?
• 3: ...take ownership of this business in another way?

Section B. General Financing - Question identifier:B.2

In what year was this business first established?

Section B. General Financing - Question identifier:B.3

Which of the following sources of finance did you use to finance the start-up of your business PRIOR to the first sale of goods or services? (Mark all that apply.)

• 1: Credit from financial institutions
  (Credit includes term business loans, non-residential mortgages, business lines of credit and credit cards.)
• 2: Personal financing used towards your business
  (Includes personal loans, lines of credit or credit cards from financial institutions, and personal savings of business owner(s).)
• 3: Retained earnings (from previous or other business)
  (Retained earnings refers to the portion of net income not paid out to owners as dividends but retained by the business to be reinvested into the core business or used to pay off debt.)
• 4: Trade credit from suppliers
  (A trade credit involves purchasing goods or services from suppliers on account and paying the supplier at a later date. Trade credit debt is reported as "accounts payable" on your Financial Statements.)
• 5: Leasing
• 6: Credit from government lending institutions or government grants
• 7: Loans or equity from friends or relatives of business owner(s)
• 8: Loans or equity from individuals unrelated to the firm or its owners (i.e. angels)
• 9: Venture capital funds
• 10: Other

Section B. General Financing - Question identifier:B.4

In what year was your business bought or acquired from its previous owners?

Section B. General Financing - Question identifier:B.5

Which of the following sources of finance did you use to finance the acquisition of your business? (Mark all that apply.)

• 1: Credit from financial institutions
  (Credit includes term business loans, non-residential mortgages, business lines of credit and credit cards.)
• 2: Personal financing used towards your business
  (Includes personal loans, lines of credit or credit cards from financial institutions, and personal savings of business owner(s).)
• 3: Retained earnings (from previous or other business)
  (Retained earnings refers to the portion of net income not paid out to owners as dividends but retained by the business to be reinvested into the core business or used to pay off debt.)
• 4: Trade credit from suppliers
  (A trade credit involves purchasing goods or services from suppliers on account and paying the supplier at a later date. Trade credit debt is reported as "accounts payable" on your Financial Statements.)
• 5: Leasing
• 6: Credit from government lending institutions or government grants
• 7: Loans or equity from friends or relatives of business owner(s)
• 8: Loans or equity from individuals unrelated to the firm or its owners (i.e. angels)
• 9: Venture capital funds
• 10: Other

Section B. General Financing - Question identifier:B.6

What is the main financial institution where your business does its day-to-day banking? (Select one only.)

• 1: Domestic chartered bank (specify): _______________
• 2: Foreign bank or subsidiary of a foreign bank
• 3: Credit union/ Caisses populaires
• 4: Other

Section B. General Financing - Question identifier:B.7

In 2011, did your business seek... (Mark all that apply.)

• 1: A non-residential mortgage or refinancing of an existing non-residential mortgage
• 2: A term loan
• 3: A business line of credit or increase in the credit limit of current line of credit
• 4: A business credit card or increase in the credit limit of current credit card
• 5: A lease
• 6: A trade credit
  (A trade credit involves purchasing goods or services from suppliers on account and paying the supplier at a later date. Trade credit debt is reported as "accounts payable" on your Financial Statements.)
• 7: Equity
  (This could be any request for new or additional financing from an investor, venture capital supplier, angel, or friend or family member in exchange for a share of the ownership of your business.)
• 8: Financing from government or a government lending institution
  (This includes direct loans, loan guarantees, grants, subsidies, no-interest loans, non-repayable contributions and equity.)
• 9: Other types of external finance

Section B. General Financing - Question identifier:B.8

Who is your main provider of external finance? (Select one only.)

• 1: Domestic chartered bank, including Alberta Treasury Branches (please specify: _______________)
• 2: Foreign bank or subsidiary of a foreign bank
• 3: Credit union / Caisses populaires
• 4: Leasing company
• 5: Government institution (for example, Business Development Bank of Canada, Export Development Canada, Farm Credit Canada) (please specify: _______________)
• 6: Venture capital firm (angel investor)
• 7: Friends and family of owner
• 8: Other

Section B. General Financing - Question identifier:B.9

Why did your business not seek external financing in 2011? (Select one only.)

• 1: Financing not needed
• 2: Thought the request would be turned down
• 3: Applying for financing is too difficult or time consuming
• 4: Cost of financing is too high
• 5: Other

Section C. Debt Financing - Question identifier:C.1

For your business' largest request for debt financing in 2011, what was the dollar amount requested?
(Your largest request in 2011 is the one with the largest monetary value.) (Debt financing includes term loans, mortgages, lines of credit and credit cards. Please provide your best estimate.)

Section C. Debt Financing - Question identifier:C.2

What was the intended use for the debt financing that was requested?
(Mark all that apply.)

• 1: Land and buildings
• 2: Vehicles/rolling stock
• 3: Computer hardware or software
• 4: Other machinery or equipment
• 5: Working capital/operating capital such as inventory or paying suppliers
• 6: Research and development
• 7: Debt consolidations
• 8: To enter a new market
• 9: Other purpose

Section C. Debt Financing - Question identifier:C.3

What was the outcome of this debt financing request? (Select one only.)

• 1: The full amount was authorized
• 2: A partial amount was authorized: $________
• 3: Request was rejected
• 4: Request is still under review
• 5: Request was withdrawn

Section C. Debt Financing - Question identifier:C.4

What reasons were given by the credit provider for turning down the request for debt financing? (Mark all that apply.)

• 1: Insufficient sales or cash-flow
• 2: Insufficient collateral
• 3: Poor or lack of credit experience or history
• 4: Project was considered too risky
• 5: Business operates in an unstable industry
• 6: Other
• 7: No reason given by credit provider

Section C. Debt Financing - Question identifier:C.5

What was the annual interest rate on this debt financing?

• 1: _________ % OR ______% + PRIME

Section C. Debt Financing - Question identifier:C.6

What was the length of term of this debt financing (in months)?

Section C. Debt Financing - Question identifier:C.7

What collateral was your business asked to provide to obtain this new debt financing in 2011? (Mark all that apply.)

• 1: Business Asset (including land, buildings, materials and equipment, inventories, accounts receivable, financial assets)
• 2: Personal Assets
• 3: Patents, trade-marks or other types of intellectual property (Other types of intellectual property protections include industrial designs, trade secrets and non-disclosure agreements.)
• 4: Other

Section D. Lease Financing - Question identifier:D.1

For your business' largest request for lease financing in 2011, what was the total value of the lease requested?
(Your largest request in 2011 is the one with the largest monetary value.) (Please provide your best estimate.)

Section D. Lease Financing - Question identifier:D.2

What type of asset did your business intend to acquire through this lease? (Select one only.)

• 1: Business or office space
• 2: Vehicles
• 3: Computer hardware or software
• 4: Other machinery and equipment
• 5: Other

Section D. Lease Financing - Question identifier:D.3

What was the outcome of this lease financing request? (Select one only.)

• 1: The full amount was authorized
• 2: A partial amount was authorized: $________
• 3: Request was rejected
• 4: Request is still under review
• 5: Request was withdrawn

Section E. Trade Credit Financing - Question identifier:E.1

What was the outcome of your business' largest request for trade credit financing in 2011? (Your largest request in 2011 is the one with the largest monetary value.) (A trade credit involves purchasing goods or services from suppliers on account and paying the supplier at a later date. Trade credit debt is reported as "accounts payable" on your Financial Statements.) (Select one only.)

• 1: A trade credit was provided
• 2: Request was rejected
• 3: Request is still under review
• 4: Request was withdrawn

Section E. Trade Credit Financing - Question identifier:E.2

Please indicate the value of the trade credit provided. (Please provide your best estimate.)

Section F. Equity Financing - Question identifier:F.1

What was the outcome of your business' largest request for equity financing in 2011? (Your largest request in 2011 is the one with the largest monetary value.) (Select one only.)

• 1: The full amount was provided
• 2: A partial amount was provided
• 3: Request was rejected
• 4: Request is still under review
• 5: Request was withdrawn

Section F. Equity Financing - Question identifier:F.2

Please indicate the value of equity provided. (Please provide your best estimate.)

Section G. Government Financing - Question identifier:G.1

What was the outcome of your business' largest request for government financing in 2011? (Your largest request in 2011 is the one with the largest monetary value.) (Government financing includes direct loans, loan guarantees, grants, subsidies, and non-repayable contributions and equity from government or government lending institutions.)

• 1: Government financing was provided
• 2: Request was rejected
• 3: Request is still under review
• 4: Request was withdrawn

Section G. Government Financing - Question identifier:G.2

Please indicate the value of the government financing provided. (Please provide your best estimate.)

Section H. General Business Information - Question identifier:H.1

What was the value of the following business financial figures in 2011? (Please provide your best estimate.)

• 1: Total business sales or total revenues $__________
• 2: Profit/net income, before taxes $_________
• 3: Total Assets $_________
  (What is the approximate total value of buildings, machinery, inventories, deposits and accounts receivable?)
• 4: Total Liabilities $__________
  (What is the approximate total amount of all short-term debt, long-term debt and accounts payable that your business owes to its creditors?)
• 5: Research and development expenditures $_________
• 6: New information and communication technology expenditures (computers, communication and software) $ ___________
• 7: New machinery and equipment expenditures $ ___________
• 8: Expenditures on education and training for employees, $ ___________

Section H. General Business Information - Question identifier:H.2

Over the last three years, what was the average yearly growth of your business' sales or total revenues? (Select one only.)

• 1: Less than 0% (negative sales growth)
• 2: 0% (no growth)
• 3: Between 1% and 10% per year
• 4: Between 11% and 20% per year
• 5: 20% or more per year

Section H. General Business Information - Question identifier:H.3

In the next three years, what is the expected average yearly growth of your business' sales or total revenues? (Select one only.)

• 1: Less than 0% (scale back)
• 2: 0% (no growth)
• 3: Between 1% and 10% per year
• 4: Between 11% and 20% per year
• 5: 20% or more per year
• 6: Not applicable (business will not exist)
• 7: Business cannot provide this information

Section H. General Business Information - Question identifier:H.4

Which of the following obstacles external to your business are serious problems for the growth of your company? (Mark all that apply.)

• 1: Shortage of labour
• 2: Fluctuations in demand for your products or services
• 3: Obtaining financing
• 4: Government regulations (please specify:___________ )
• 5: Rising cost of inputs
• 6: Increasing competition
• 7: Other

Section H. General Business Information - Question identifier:H.5

Which of the following obstacles internal to your business are serious problems for the growth of your company? (Mark all that apply.)

• 1: managing debt level
• 2: maintaining sufficient cash flow
• 3: lack of monitoring of your business operations to make improvements (information on business operation could be about your production of goods and services, client satisfaction, employee performance, financial performance, etc.)
• 4: lack of knowledge about competitors or market trends
• 5: devoting too much time to day-to-day operations
• 6: recruiting and retaining employees
• 7: other

Section H. General Business Information - Question identifier:H.6

In 2011, what percentage of your total sales was made: (Please provide your best estimate.)

• 1: Within your local municipality or region ____% (Include all sales made within 80 km of your business.)
• 2: Outside of your local municipality or region but within your province or territory _____%
• 3: Rest of Canada ______ %
• 4: Outside of Canada (export sales) ______%

Section H. General Business Information - Question identifier:H.7

In 2011, did your business export: (Mark all that apply.)

• 1: Goods?
• 2: Services?

Section H. General Business Information - Question identifier:H.8

In 2011, what percentage of your business' total exports was made to: (Please provide your best estimate.)

• 1: The United States ______ %
• 2: Latin America ______% (Latin America includes Mexico, Central and South America and the Carribean.)
• 3: Europe ______ %
• 4: China ______ %
• 5: Other Asia ______ %
• 6: Other ______ %

Section H. General Business Information - Question identifier:H.9

In 2011, did your business... (Mark all that apply.)

• 1: Import goods or services from outside Canada?
• 2: Outsource (contract out) any business activities from Canada to another country?
• 3: Sell goods to a business in Canada that used them as an intermediate input in the production of another good that was then exported?
• 4: Engage in foreign direct investments? (Full or partial ownership voting stock of a foreign enterprise.)
• 5: Relocate business activities in support of its operations outside of Canada (i.e. keeping the activity within your business but outside Canada)?
• 6: Engage in other international business activities?

Section H. General Business Information - Question identifier:H.10

Which of the following sources did your business use to finance its foreign investment? (Mark all that apply.)

• 1: Financing from Canadian financial institutions
• 2: Financing from non-Canadian financial institutions
• 3: Financing from Canadian governmental lending agencies or Canadian governmental grants
• 4: Financing from non-Canadian governmental lending agencies or non-Canadian governmental grants
• 5: Private equity
• 6: Internal company resources (e.g., intercompany loans, cash-flow and retained earnings)
• 7: Other

Section H. General Business Information - Question identifier:H.11

In the next 3 years, does your business intend to expand sales to new markets within... (Mark all that apply.)

• 1: The United States
• 2: Latin America (Latin America includes Mexico, Central and South America and the Carribean.)
• 3: Europe
• 4: China
• 5: Other Asian countries
• 6: Other

Section I. Owner Information - Question identifier:I.1

What is the age of the majority owner or general manager of your business? (In the case of equal partnership, please report the average age of the partners.)

Section I. Owner Information - Question identifier:I.2

What is the highest level of education attained by the majority owner or general manager of your business? (Select one only.)

• 1: Less than high school diploma
• 2: High school diploma
• 3: A college/cegep/trade school diploma
• 4: A bachelor's degree
• 5: A master's degree or above

Section I. Owner Information - Question identifier:I.3

How many years of experience does the majority owner or general manager have in owning or managing a business? (Include experience managing any business, not just this one.)

Section I. Owner Information - Question identifier:I.4

Was the majority owner or general manager born...

• 1: In Canada?
• 2: Outside of Canada? (Please specify: ____________________ )

Section I. Owner Information - Question identifier:I.5

How many years has the majority owner or general manager resided in Canada?

Section I. Owner Information - Question identifier:I.6

What is the language that the majority owner or general manager first learned at home and still understands today? (Select one only.)

• 1: English
• 2: French
• 3: Other

Section I. Owner Information - Question identifier:I.7

Is the majority ownership of your business held by... (Mark all that apply.)

• 1: An aboriginal person?
  (Aboriginal persons refer to those persons who identify with at least one Aboriginal group, (i.e. North American Indian, Métis or Inuit). ("North American Indians" are those who are a Treaty Indian or a Registered Indian as defined by the Indian Act of Canada and/or who are members of an Indian Band or First Nation.)
• 2: Persons who are from a visible minority group (other than aboriginal)?
  (Visible minority groups include someone, other than an Aboriginal person, who is non-white in colour/race, regardless of place of birth. For example, Black, Chinese, Japanese, Korean, South Asian/East Indian, Southern Asian, non-white West Asian, North African or Arab, non-white Latin American, persons of mixed origin (with one parent in one of the visible minority groups in this list), or other visible minority group).

Section I. Owner Information - Question identifier:I.8

What percentage of your business is owned by women?

Section J. Technical and Non-technical Innovation - Question identifier:J.1

In the last three years has your business developed or introduced: (Mark all that apply.)

• 1: A new or significantly improved good or service
  (This may be a new or significantly improved good or service with respect to its capabilities, user friendliness, components or sub-systems. It must be new to your business but it does not need to be new to your market.)
• 2: A new or significantly improved production process or method
  (This may be a new or significantly improved production process, distribution method or support activity for your goods and services. It must be new to your business but it does not need to be new to your market.)
• 3: A new organizational method in your business practices, workplace organization or external relations
  (It must be a result of strategic decision taken by management. Exclude mergers or acquisitions, even if for the first time.)
• 4: A new way of selling your goods or services
  (This requires significant changes in product design or packaging, product placement, product promoting or pricing. Exclude seasonal, regular and other routine changes in marketing methods.)

Section J. Technical and Non-technical Innovation - Question identifier:J.2

What was the main reason your business did not develop or introduce any new or significantly improved product, process, organizational or marketing innovations in the last three years? (Select one only.)

• 1: Innovations were carried out prior to 2009
• 2: Market doesn't require new products/processes
• 3: Lack of funds to carry out innovation projects
• 4: Lack of trained staff to carry out innovation projects
• 5: Business doesn't need to innovate/innovation is not part of business plan
• 6: Other reason

Section J. Technical and Non-technical Innovation - Question identifier:J.3

What was the result of developing or introducing this/these innovation(s)? (Mark all that apply.)

• 1: Increased sales
• 2: Decreased costs
• 3: Captured a larger share of the existing market
• 4: Entered into a new market
• 5: Results have not yet been realized
• 6: Other
• 7: No result

Section K. Intellectual Property - Question identifier:K.1

As of December 2011, did your business hold any... (Mark all that apply.)

• 1: Registered trade-marks
  (A trade-mark is any combination of words, designs, numbers, or shapes used to distinguish the goods or services of one organization from those of others. Include registered trade-marks, enterprise and all company names (if trade-marked), enterprise logos and product logos (if trade-marked). Exclude domain names (websites).)
• 2: Patents
  (A patent is a set of rights granted to an inventor for a limited period of time in exchange for a public disclosure of that invention. Include patents originated with previous owners, patents licensed to others, patents purchased directly by your business or obtained through mergers and acquisitions.)
• 3: Registered industrial designs
  (Industrial designs are any combination of the visual features of shape, configuration, pattern or ornament applied to a finished article made by hand, tool or machine. Also known as design patents in the U.S.)
• 4: Trade secrets
  (Trade secrets are information that is secret or not generally known in the relevant industry and that gives its owner an advantage over competitors.)
• 5: Non-disclosure agreements
  (A non-disclosure agreement is a legal contract between at least two parties that outline confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to by third parties.)
• 6: Any other type of intellectual property protection,
  please specify:_______

Section K. Intellectual Property - Question identifier:K.2

As of December 2011, in which of the following countries or regions did your business hold patents, trade-marks or other types of intellectual property protections? (Other types of intellectual property protections include industrial designs, trade secrets and non-disclosure agreements) (Mark all that apply.)

• 1: Canada
• 2: United States
• 3: Europe
• 4: Other, please specify: _____________________

Section K. Intellectual Property - Question identifier:K.3

Why did your business decide to hold patents, trade-marks or other types of intellectual property protections? (Other types of intellectual property protections include industrial designs, trade secrets and non-disclosure agreements) (Mark all that apply.)

• 1: Prevent your new product(s) or service(s) from being copied
• 2: Improve chances of securing financing
• 3: Enhance business reputation or product image
• 4: Prevent legal action against your business related to patents or other intellectual property protections
• 5: Obtain licensing revenues
• 6: Other, please specify: ______________________

Section K. Intellectual Property - Question identifier:K.4

Why did your business decide not to seek any patents, trade-marks or other types of intellectual property protections? (Other types of intellectual property protections include industrial designs, trade secrets and non-disclosure agreements.) (Mark all that apply.)

• 1: No need / not relevant for your business
• 2: Unaware of relevant IP type
• 3: Concerns regarding disclosure
• 4: Cost of application
• 5: Cost of enforcement or litigation
• 6: Complexity of application process
• 7: Uncertain commercialization prospects
• 8: Other

Section K. Intellectual Property - Question identifier:K.5

In the last three years, did your business... (Mark all that apply.)

• 1: ...sell or license out any patents, trade-marks or other types of intellectual property to other businesses?
  (Other types of intellectual property protections include industrial designs, trade secrets and non-disclosure agreements.)
• 2: ...buy or license in any patents, trade-marks or other types of intellectual property from other businesses?
  (Other types of intellectual property protections include industrial designs, trade secrets and non-disclosure agreements.)

Section K. Intellectual Property - Question identifier:K.6

Has your business ever sought external advice on patents, trade-marks or other types of intellectual property? (Other types of intellectual property protections include industrial designs, trade secrets and non-disclosure agreements.)

• 1: Yes
• 2: No

Section K. Intellectual Property - Question identifier:K.7

Please indicate from which of the following sources your business has sought external advice on patents, trade-marks or other types of intellectual property: (Other types of intellectual property protections include industrial designs, trade secrets and non-disclosure agreements) (Mark all that apply.)

• 1: Canadian Intellectual Property Office
• 2: Legal professional, other than intellectual property specialist
• 3: Intellectual property specialist
• 4: Accountant
• 5: Business association
• 6: Colleague or friend
• 7: Internet search
• 8: Other

Section K. Intellectual Property - Question identifier:K8

Does your business have a formal strategy for protecting your patents, trade-marks or other types of intellectual property (either separate from or part of your overall business plan)? (Other types of intellectual property protections include industrial designs, trade secrets and non-disclosure agreements)

• 1: Yes
• 2: No

Section K. Intellectual Property - Question identifier:K.9

Has your business ever used or searched patent, trade-mark or other intellectual property databases? (Other types of intellectual property protections include industrial designs, trade secrets and non-disclosure agreements) (Examples of intellectual property databases include the US Patent & Trademark Office's patent database and European Patent Office's Espacenet.)

• 1: Yes
• 2: No

Section K. Intellectual Property - Question identifier:K.10

For which purpose has your business used or searched patent, trade-mark or other intellectual property databases? (Other types of intellectual property protections include industrial designs, trade secrets and non-disclosure agreements) (Examples of intellectual property databases include the US Patent & Trademark Office's patent database and European Patent Office's Espacenet.) (Mark all that apply.)

• 1: Gain competitive advantage
• 2: Avoid infringement
• 3: Ensure freedom to operate
• 4: Assess patentability of ideas
• 5: Identify potential partners

Section L. Conclusion Text - Question identifier:L.1

To avoid duplication of surveys, Statistics Canada has signed an agreement with the Institut de la statistique du Québec, to share the information that you provided on this survey. It has agreed to keep your information confidential and use it only for statistical purposes. Do you agree to share your information with the Institut de la statistique du Québec?
1) Yes
3)No