A new report says that 14% of Canadian small businesses are at risk of permanently closing due to the COVID-19 pandemic.
About one in seven small- and medium-sized companies surveyed at the end of June by the Canadian Federation of Independent Business (CFIB) said it is considering bankruptcy or winding down operations because of the global pandemic. That would represent about 158,000 businesses in addition to ones that have already closed.
Recent indicators suggest the Canadian economy is recovering, but economists warn the country is still headed for a long climb out of the deepest downturn since the Great Depression. The CFIB said its latest survey results may be conservative as its member businesses are usually more established, and therefore more resilient to economic shocks.
Business closures could range between 55,000 at the low end of estimates and 218,000 at the high end, depending on how the recovery goes, the CFIB said. Geographically, businesses in Alberta face the highest risk of going under at 19%. The western province has suffered a double blow from the pandemic and a collapse in global oil prices.
