Small-business owners in British Columbia say they are confident about their economic futures despite increasing challenges that include rising fuel prices and the cost of doing business.

"Things are going very well in B.C. The business climate is very good," says Dave Park, an economist with the Vancouver Board of Trade.

"The provincial government is paying down the debt. We have one of the lowest unemployment rates ever and the economy is doing well."

While Park says small-business owners in Eastern Canada are concerned about high gasoline and energy prices, "here in B.C., those concerns are far outweighed by all the good things that are happening."

File photo by Bayne Stanley, Business Edge
Cupcakes co-owners Lori Kliman, left, and Heather White plan to have five locations up and running by 2007.

Bruce Carter, chief executive officer of the Greater Victoria Chamber of Commerce, agrees the province's economic outlook is rosy.

"The provincial government certainly has made some good positive economic moves. It has indicated that there will be tax stability for the next five years, for example," he says. "Also we have a better connection to world markets, whereas in Eastern Canada they are a lot more reliant on the U.S. In Victoria, there is quite a bit of high-tech industry and energy and fuel costs are a small percentage of total costs."

In a recent membership survey, the Canadian Federation of Independent Business (CFIB) said B.C. companies are among the country's most optimistic.

The CFIB's forecast notes 60 per cent of B.C. small and medium-sized companies expect the next 12 months to be strong, 18 percentage points higher than the national average. Only small-business operators in Alberta were slightly ahead at 61 per cent.

The report also stated that 88 per cent of independent business owners across the country find energy prices to be a "major cause" of concern.

Of those surveyed in B.C., 39 per cent expect to hire more full-time staff, compared with 26 per cent nationally.

"Lower taxes and less regulation and a strong economy are key factors in the optimism in B.C.," says Laura Jones, CFIB vice-president for B.C. and the Yukon.

"Since 2001 there has been a 40-per-cent reduction in the regulatory load for business by the provincial government. The regulatory relief fuels a large part of the optimism and the tax relief the government has brought in.

"On top of that there has been a substantive relief in personal income taxes. All of these moves have made B.C. a much more competitive climate in which to do business."

Brad Campbell shares that optimism. Even though he's only been in business for a little over a month, he says the future looks bright.

The co-owner of The Bent Box, an 850-sq.-ft. gallery on Granville Island, one of Vancouver's premier shopping destinations, says "it's been amazing and overwhelming how customers have responded."

The gallery specializes in selling Aboriginal gift items ranging from $40 to $22,000. "We've been following the Native market for 10 years and demand for Native art is increasing. So you have to establish your foothold," says Campbell. "Our approach is to stay away from the high end. We are able to offer our customers something that is affordable for everyone."

And while his business is just getting off the ground, Campbell says the combination of the 2010 Olympics coming to town and major construction projects on the go are helping fuel his optimism. My business partner and I are really optimistic," he adds. "We've entered the market at the right time."

A recent study by the Bank of Nova Scotia concluded that from 2000 to 2004, small businesses in B.C. created 43 per cent of 89,900 new jobs. Four out of five new jobs were created by the small-business sector. The biggest job creators were the construction sector at 31 per cent, and the retail sector at 23 per cent.

For bakery co-owner Lori Kliman, a strong economy is the icing on the cake at her downtown Vancouver business.

Kliman and business partner Heather White say they are "extremely optimistic about the future."

"Right now we are doing various studies with the view of opening four additional Cupcakes outlets," says Kliman. "We want to expand aggressively. Currently our sales are up by 25 to 30 per cent compared with last year."

Their business plan calls for five Cupcakes to be in operation by 2007.

"We have done demographic research and it shows that a lot of our customers are visitors to Vancouver. With the exposure Vancouver is getting worldwide due to the Olympics, we are seeing a lot of visitors coming to buy our cupcakes," she adds.

(George Froehlich can be reached at george@businessedge.ca)