The Business Development Bank of Canada (BDC) announced that there will be a boost of 3% in investment made by small and mid-sized businesses.
According to the bank, the hike is mainly due to the surge in the business acquisition plans. The 3 percent boost will make the investment to reach $140.5 billion. BDC is expecting the business owners to increase the investment to acquire another business for $18.9 billion this year. This is $10.6 billion more than the investments made in 2017.
The report from the bank says that the sustainable economic growth in the country is the major factor for increased investments. The other factors include boosting the business value and to keep up with the competition.
The highest rate of growth in investment will be visible in the technology sector. The service sector is expected to come in the second position. The manufacturing sector will see stagnation in investment. In the construction and resources sector, the investments are expected to decline.
The annual report by BDC on the investment intentions by businesses is mainly based on the survey conducted by the bank in August and September of 2017. About 4,019 business owners took part in the survey.
The survey findings are encouraging for the companies as they will be able to offer better benefits and wages.