Poll digs deep into concerns, attitudes, and coping strategies shared by Canadian entrepreneurs
The past few months have been nothing short of a trial for Canadian business owners, with a slight majority holding that their area is in crisis. Despite that, entrepreneurs are showcasing their trademark resilience, with a strong majority believing in better times ahead.
According to a new study by CIBC, two thirds (68%) of Canadian business owners continue to be negatively impacted by the COVID-19 pandemic, and more than half (57%) believe businesses in their area are in crisis mode.
Among the top concerns cited by respondents were reduced demand for their products and services (37%) and worries surrounding their operations’ overall viability (23%); four fifths (81%) agreed that the hardest aspect to manage has been the uncertainty of the current environment. Nearly three fourths (72%) of business owners reported feeling much higher levels of stress compared to before the pandemic.
But even in the face of those setbacks, 75% of business owners polled by CIBC were confident that they’ll bounce back when the pandemic subsides. Three tenths (29%) anticipate things will be back to normal in one to two years.
“During these challenging times, Canadian business owners have shown incredible resilience by staying focused on fundamentals and being very nimble and creative,” said Laura Dottori-Attanasio, Group Head, Personal and Business Banking, CIBC.
Business owners are adopting different approaches to sustain sales, cut expenses, and keep their doors open. One third (30%) said they’ve expanded their virtual presence, and over half (57%) are planning to build their business’s digital capabilities while 16% have pivoted to a completely online model of business operation.
More than half (56%) have availed of at least one government relief program this year, and nearly as many (52%) said they’re relying on government support for survival. Two fifths (41%) are seeking additional credit to shore up their operating capital.
Around one third of business owners are adopting defensive strategies such as reducing operating expenses (35%) and cutting employee hours (28%). Forty-five per cent are looking to reduce their debt levels, while 40% said they’re seeking advice to manage their cash flow better.
