Effects of COVID-19 on Canadian small businesses

Small businesses made up 98.1% of all employer businesses in Canada in 2021. Small businesses employed 9.7 million individuals in Canada – about two-thirds of the total labour force, in 2020. By comparison, medium-sized businesses employed 3.2 million individuals (21.2% of the labour force) and large businesses employed 2.3 million individuals (14.8% of the labour force). As such, small businesses play an important role in employing Canadians and are a significant driver towards economic recovery.¹

From the beginning of October to early November 2021, Statistics Canada conducted the Canadian Survey on Business Conditions to better understand the current environment businesses in Canada are operating in and their expectations moving forward. Small businesses were:

1. more likely to expect a decrease in profitability and sales;
2. less likely to expect demand for their goods and services to increase over the next three months, compared with larger businesses;
3. more likely to foresee challenges in repaying funding received from repayable government support programs; and
4. more likely to be uncertain of their future outlook.

How uplifting. So, what are we doing about it?

Well, we’re a small business too. The CEBA loan repayment date is looming. What this pandemic will bring next week is uncertain, nevermind three months from now. Financial planning is a nightmare. BUT we’re absolutely hecking determined to solve #1 and #2 on that scary list – and ultimately help with #3 and #4 too.

Sounds great. How?

Book your free strategy session. During our session we will pick your brain about what’s working for your business, what’s not working, and your short- and long-term goals. Our strength is in identifying opportunities specific to your unique business case and proposing affordable, relevant, and valuable solutions. We will email you a summary after our discussion. There is zero obligation to work with us, and we’re happy to help.

References:

1. Statistics Canada: Impact of COVID-19 on small businesses in Canada, fourth quarter of 2021