Sep. 30, 2022
Small Businesses Want More Government Help
Most (82 per cent) small business owners want governments to do more to address inflation, says a survey from Equifax Canada. Within a nationwide panel of 300 small business owners, 87 per cent said they have been forced to increase prices as a result of rising business costs and 78 per cent admit that this move is hurting their business. Small business owners are currently dealing with many challenges and concerns including managing cash flows, access to financing, cost of goods, and product availability. The top three expenses impacting them are products and supplies, fuel, and wages. Wages are significantly more likely to be the top expense impacting businesses in Quebec at 30 per cent versus 16 per cent in the rest of Canada. “Inflation and higher interest rates are beginning to weigh on the cash flow of small businesses,” says Jeff Brown, head of commercial solutions, Equifax Canada. “Small business owners are juggling more now even as the pandemic becomes less of a concern. Not only are they dealing with inflationary pressures on the cost of goods, supply chain issues, and the demand for increased wages, they are taking on more debt and we’re seeing delinquencies and insolvencies rise.” The average debt for small businesses in the second quarter of 2022 has increased by 14.9 per cent year-over-year and by four per cent compared to the previous quarter. The average balance for a small business now sits at $37,000. Additionally, bankruptcies were up 11 per cent year-over-year and up 12 per cent against the last quarter.