Small business optimism has risen slightly in Saskatchewan according to a new survey from the Canadian Federation of Independent Business (CFIB).
The survey found optimism for small business owners in the province rose to 57.7 per cent in February, up from 55.0 the previous month.
That is the highest level the index has been in over a year.
READ MORE: Multi-million dollar Métis business pilot project launched in Saskatoon
Thirty-six per cent said the overall state of their business is good, while 15 per cent said it was bad.
The CFIB survey also found that 10 per cent of businesses plan to increase full-time staff in the next few months while 12 per cent plan to decrease staff.
Businesses also reported a lack of domestic demand remained a main operating challenge followed by a lack of skilled labour and time constraints.
Marilyn Braun-Pollon, the CFIB’s vice-president of prairie & agri-business, said now is not the time for the Saskatchewan government to consider a tax hike to tackle the $1.2 billion deficit.
“The worst thing the provincial government could do is hike taxes in the 2017 budget, which will further jeopardize our competitiveness,” Braun-Pollon said in a statement.
“The government needs to continue to focus on implementing significant spending restraint.”
READ MORE: Sask. government tells public sector employers to cap employee compensation
In a pre-budget survey, 72 per cent of small business owners want the Saskatchewan government to implement spending restraints in the upcoming budget – either by reducing the size of government or freezing wages.
Only seven per cent support tax hikes.