Small businesses in New Brunswick and across Canada are already feeling the stark financial impacts of trying to contain the spread of Coronavirus, according to the latest survey from the Canadian Federation of Independent Businesses (CFIB).
According to the survey, half of Canada’s small firms have already seen a drop in sales due to the economic effects of COVID-19, with four in 10 of those affected businesses also reporting a decrease greater than 25 percent.
The survey also found that a quarter of small firms would not be able to survive for more than a month with a drop in business income of more than 50 percent.
Louis-Philippe Gauthier, CFIB’s director of provincial affairs for New Brunswick and Prince Edward Island, says the survey data is comparable in all provinces, including New Brunswick. Businesses in the hospitality, arts/recreation, retail and personal services are getting hit the hardest.
“The impact varies according to the sectors. If it’s in a sector where the government has essentially ordered a shutdown, of course it is having a bigger impact,” says Gauthier. “Basically, at that point, you’re not operating. But businesses are feeling the pinch of this quite heavily on their revenues, especially in the public-facing sectors.”
CFIB has been pressing both federal and provincial governments to provide support to small businesses impacted by the virus. Their suggestions include postponing things like GST, HST, EI and other tax payments that would help keep cash in businesses. But for businesses severely impacted, Gauthier says more will need to be done.
“There’s also the reality that for the businesses that are severely impacted by this there are additional considerations that need to occur, especially since certain sectors are literally being shut down by the government,” he says. “It is going to require direct cash input into companies in one form or another to either support payroll or support the employers.”
To help the small businesses that are still open, Gauthier suggests people find ways to safely get what they need locally.
“It would be good for the public to keep in mind that small businesses need their support during this time, either ordering through delivery, certain small businesses have gift cards that you can buy,” he said. “These are the types of steps where the consumer can help small businesses by thinking about them and seeing if they can fulfill their needs through small businesses.”
A version of this story was published in Huddle, an Acadia Broadcasting content partner.
