One in seven small businesses is at risk of going under as a result of COVID-19 in addition to the ones that have already closed, warns the Canadian Federation of Independent Business (CFIB).
In a new report CFIB's mid-range estimate for business closures due to COVID-19 is 158,000 (14 per cent of small businesses). Depending on how the recovery goes, losses could be as few as 55,000 (five per cent) or as many as 218,000 (19 per cent).
Minimizing losses critical
"Small businesses are big players in our economy, so minimizing business losses is critical to recovery. Right now both government support and consumer behaviour are critical to transitioning back to conditions that allow businesses to survive and thrive," said Laura Jones, Executive Vice-President at CFIB.
Businesses in the arts and recreation (gyms, venues, arcades) and hospitality (restaurants, hotels, caterers) sectors are most at risk -- hospitality may see 27 per cent of businesses close and arts and recreation, 30 per cent. Businesses in Alberta face the highest risk of closing, with a mid-range estimate of 19 per cent going under as a result of COVID-19.
