Canada's struggling economy is not deterring small technology firms from pursuing new business opportunities, judging from participation in a recent Vancouver tech conference.

About 1,000 people and 60 exhibitors, mostly small and medium-sized tech and telcom firms from across Canada, attended Massive Event's one-day Vancouver technology tradeshow and conference earlier this month.

"Overall, there are a lot of businesses that are suffering out there," says Lindsay Smith, Massive's president and CEO. "But when the economy is suffering, that's usually when they want to get out face to face. They want to mingle. They want to connect."

Smith estimates the economy has affected 20 percent of Canada's small tech companies.

"Companies across the board seem to be scaling back on labour," says Smith. "That is always a huge expense for a lot of businesses. They're just trying to make smarter decisions in terms of how they're using their resources."

Many small companies are taking longer to make purchasing decisions and monitoring their budgets more closely. But they still appear willing to do business over the internet, although sometimes on a smaller scale.

Carolyn Cramer, sales manager for Toronto-based Yahoo Search Marketing, says the recession has created new opportunities for her firm because many large companies have cut their advertising budgets.

"It's not always the best thing to do, to talk about maintaining," she says. "But when others are pulling back, it's a great time to move forward on online search advertising, specifically because it's so measurable. They can get out there and do it and do it quite cost-effectively."

Cramer says her company, which has a team that works specifically with small and medium-sized firms, continues to see a "steady climb" in customers that partake in search marketing.

Massive's Smith says smaller tech firms are attempting to help their bottom lines by capitalizing on free online services, using social media more for marketing purposes and doing more research online.

"In the past, when things were great, people started making quick decisions and hiring people left, right and centre," she says. "They were just getting caught up in the buzz of it all and they were not always thinking things through.

"It's hard to put a positive spin on it, but small businesses and just businesses in general really have to lean up. It puts them under the gun because there's just not as much money."

While many companies are struggling, firms that offer ways to save money and energy are seeing demand for their products and services increase.

David Anderson, a product marketing specialist with Vancouver-based Faronics, says his company has adopted a do-more-with-less philosophy.

"One of the things we're not doing is going to quite as many tradeshows as we have, just to try and cut back on those expenses," says Anderson.

Faronics provides products that enable companies to reduce computer and network-related energy costs and tech-support charges. The company has made changes on small policy issues, but has not had to cut staff or make other "major shifts" as a result of the economy.

"(The effect) probably comes down more to the oversight and making sure that where we're spending our money is valid," says Anderson. "There's always that desire to spend as wisely as possible, but there's a focus on that right now."

Jody Seaman, general manager of Vancouver operations for Calgary-based printing and graphic design company Industry Images, says online companies remain a good fit for his traditional business.

"I don't think I've noticed a huge difference in how (tech companies) would use our services," says Seaman, whose company was a sponsor and exhibitor at the Massive event. "I would say the biggest way (the economy) has affected us is how we think about our own business."

Rajan Sodhi, vice-president of marketing and communications for Vancouver-based internet infrastructure firm Peer 1, says it's inevitable that small telecommunications companies will get caught up in the economic malaise.

"(Customers) are taking a lot more time to make decisions," says Sodhi. "So I would imagine consumers and businesses are going to be a little more cautious, and it will ultimately affect all industries. I don't think telcos will be an exception."

He adds Peer 1 is still growing steadily and seeing the same level of interest in web hosting.

"There's a lot of activity on the internet," Sodhi says. "It's a huge medium. The only difference now is that people are taking a little bit more time to make that (purchasing) decision."

Despite the downbeat economic news, the Vancouver tradeshow generally reflected a positive mood.

"What you're seeing in the media and what we're reading in the newspaper makes everything sound very gloomy," says Sodhi.

"It's important to come out to these tradeshows and go to business events and networking events to see that the actual mood of the people isn't so much reflected in that way. People are being more cautious, but I don't think (the economy) has deterred people from wanting to do business and wanting to promote their business - and to grow."

(Monte Stewart can be reached at monte@businessedge.ca)