CIBC survey uncovers COVID-19 challenges as well as dramatic efforts to adapt to near-term environment
In the face of the coronavirus outbreak, the majority of business owners are facing drastic negative impacts — but nearly as many are confident that they will recover in time.
In a new poll of Canadian small-business owners conducted by CIBC, four fifths of respondents (81%) said COVID-19 has negatively impacted their operations. Just over half (54%) reported that their sales have dropped, with nearly the same number (52%) citing reduced customer demand for their products and services.
Nearly three tenths (28%) said they’ve had to temporarily shut down their operations totally, and around one fifth (21%) were concerned that they may be unable to pay their staff.
For a large majority (85%), the hardest aspect to manage right now is the uncertainty surrounding how long measures to contain COVID-19 will stay in place.
Given the current climate, many business owners expressed pessimism. Echoing results from other surveys, nearly a third said they were worried about their business’s viability over the next year (32%) and feel it will take one to two years for business volumes to return to pre-COVID levels (29%).
Still, around three fourths (76%) confident they can rebound after the crisis.
While 74% said their business is not currently set up to sell or service customers online, most respondents said they’ve had to adapt by making some hard choices.
A third (34%) have cut back their operating expenses, while 29% have dipped into savings. One fourth (25%) said they’ve let go of staff, and 15% said they applied for more credit.
