Today, BDC released the results of an Alberta based study on the impact of diversification. The study included 998 Alberta based companies across a variety of industry sectors. “The message is clear – diversification is a critical strategy for Canadian businesses to succeed in these challenging times”, says Pierre Cléroux, Chief Economist and Vice‑President, Research at BDC. “Business owners who fail to do so may be missing growth opportunities and putting their company under unnecessary risk.” “We found a clear relationship between financial performance and the level of diversification,” Cléroux says. In fact, nearly seven in 10 fully diversified companies had strong revenue growth – versus less than two in 10 undiversified businesses.
Even businesses with a modest degree of diversification were more likely to have strong revenue growth than undiversified companies. The study also includes a profile of 5 Alberta entrepreneurs in diverse sectors that have successfully undertaken a diversification strategy. Read the full business diversification study or visit the BDC Analysis and Research section for more information, strategies and studies.