–continuity central–

The majority of Canadian small business owners are unprepared to deal with common disruptions that can impact their ability to do business, according to the latest American Express Small Business Monitor. Almost half of small business owners are unfamiliar with the practice of business continuity planning.

The quarterly monitor demonstrates the importance of business continuity planning, as two out of every five respondents have already experienced a ‘significant’ disruption to their business. Nonetheless, small business owners find it difficult to address the threat: 80 percent of respondents said preparing for potential disruptions is low on their to-do list, or not even on their radar, and almost half (49 percent) don’t even have fire and flood insurance.

When asked how prepared they are to deal with a disruption, a mere seven percent of small business owners said they are very prepared. Only 20 percent stated that developing a plan to deal with disruptions is a top priority in the year ahead. Money was cited by 35 percent as a hindrance to developing a plan, while a third of respondents said finding time was a struggle.

“Small businesses are a vital part of the country’s economy, and given
all they have to do, it’s no surprise that they have very little time to
invest in issues that don’t translate to growth,” said Howard Grosfield, VP & General Manager, Small Business Services, American Express Canada and International. “Business owners are laser focused on how to boost sales and profit, particularly during a recession. Business continuity planning, while a vital protection for small businesses, simply isn’t going to make a company money in the short term.”

The monitor also revealed that the vast majority of Canadian small business owners have not taken precautions that cost little or no money. A full 75 percent have yet to talk to their staff about how to handle or avoid a disruption.

Small business owners noted several areas of proactive defense against the unexpected, including:

- Data back-up plan – 57 percent
- Emergency cash reserves – 34 percent
- Back-up power systems – 31 percent
- Catastrophic illness insurance – 20 percent.

www.americanexpress.ca/smallbusiness

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