Majority Of Canadian Businesses Worry About Survival In Coming Year - Statistics Agency

TORONTO (UrduPoint News / Sputnik - 06th March, 2021) The majority of Canadian businesses are worried they might not survive the ongoing COVID-19 pandemic, the state statistics agency said.

"Over half (51.3%) of businesses did not know how long they could continue to operate at their current level of revenue and expenditures before considering closure or bankruptcy, while one-tenth (10.3%) of businesses reported they could continue for less than 12 months," Statistics Canada said in its first quarter business conditions survey on Friday.

The concerns are most pronounced in the accommodation and food services industry, where a quarter of businesses says they could continue operations for less than 12 months in the current conditions before shuttering doors forever. More than 23 percent of arts, entertainment and recreation businesses said the same.

Furthermore, nearly half - 46.4 percent - of business said they did not know how much longer they could manage before laying off staff, while more than one in five said that they have less than 12 months before layoffs begin.

Overall, nearly 42 percent of all businesses are bracing for a decline in profitability in the next three months and close to a third of companies are anticipating sales declines in the same period.

The results of a recent study conducted by the Canadian Federation of Independent Business (CFIB) revealed that a sixth of Canadian small businesses impacted by the COVID-19-related restrictions are contemplating closing for good, potentially putting 2.4 million jobs in jeopardy.

Persistent lockdown orders in Canada in combination with an underwhelming Federal vaccine rollout have sparked frustration among the hundreds of businesses owners, who have been forced to close their doors for months.

Last month, despite facing steep fines of up to $79,000, more than 500 small business owners, in at least eight out of ten Canadian provinces, reopened in defiance of strict lockdown measures in place across much of the country.

Canadian business owners, some of whom participated in the protest, told Sputnik that the pandemic is crushing small businesses, while governments roll out confusing new guidelines and relief programs that are insufficient.