Following a sudden resurgence of Covid-19 before the end of 2020, many regions across Canada imposed tougher lockdowns and more restrictions, pushing even more small businesses closer to shutting their doors permanently.
According the Canadian Federation of Independent Business (CFIB), the dire economic situation for small businesses has gotten increasingly worse since additional lockdowns were imposed back in November. On Thursday, the organization revealed that one in six, or approximately 181,000 small businesses across Canada, are seriously considering shutting their doors.
The latest figures, which were based on a survey conducted between January 12 and 18, paint a much more dire picture of the state of the country’s small business sector. A prior estimate by CFIB from last summer suggested that one in seven, or about 158,000 businesses, were at risk of going under due to the pandemic. Now, based on the updated forecast, the CFIB predicts that over 2.4 million people face unemployment in the event of further small business shutdowns.
According to CFIB senior director of national research Simon Gaudreault, the number of small businesses that face closure as a result of the pandemic is an alarming increase. “We are not headed in the right direction and each week that passes without improvement on the business front pushes more owners to make that final decision,” he noted in a statement. “The more businesses that disappear, the more jobs we will lose and the harder it will be for the economy to recover.”
Information for this briefing was found via the CFIB. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.