Fewer than one in five businesses say they are fully recovered, one in 20 for some hard hit sectors
More than 80 per cent of small businesses have not fully recovered from the pandemic, with that share rising above 90 per cent for hard hit sectors like arts and recreation (95 per cent) and hospitality (96 per cent), finds the latest research from the Canadian Federation of Independent Business (CFIB). Businesses that have not recovered say it will take them an average of 23 months to get back to normal.
“While we are starting to put the worst of the COVID storm behind us, for small businesses clean-up and recovery is its own daunting task,” said Laura Jones, Executive Vice-President at CFIB.
The survey asked small businesses to define what recovery means to them. The top answers include:
- Being back to pre-pandemic sales (46%)
- No longer experiencing high stress and anxiety levels due to COVID-19 (45%)
- No longer experiencing pandemic related delays in supplies and shipping (44%)
- Being allowed to be fully open without restrictions (40%)
- Having paid off any debt incurred due to COVID-19 (39%)
- Being back to pre-pandemic staffing (27%)
- No longer worrying about having to close their business permanently (24%)
- Having established a set of “new normal” practices for employees and customers (23%)
“Recovery means much more than getting back to normal sales and staffing—it’s also about paying down debt and processing the shock to our collective systems. Things are starting to look much more normal on the surface but there is still a long road ahead for many business owners who remain stressed out about the future,” said Simon Gaudreault, Vice-President of National Research at CFIB.
CFIB continues to encourage consumers to support local businesses through its #SmallBusinessEveryDay campaign. It also urges governments to extend support measures until the economy, including Canada’s borders, has reopened fully.
“With a potential federal election on the horizon, it is crucial that all parties have a strong strategy for how they will support small businesses and the communities that rely on them through their recovery,” concluded Jones. “And, as consumers, we can all be part of the small-business recovery solution in small ways every day.”