Entrepreneurs are adapting to the pandemic and confident their businesses will survive: BDC study
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Since the lockdowns began in March, Canadian businesses including those in the small and medium-size and entrepreneurial categories have been buoyed by federal and provincial government programs providing wage and rent subsidies and emergency loans. Workers, meanwhile, have had lost wages replaced. Some of the assistance programs have been renewed, while others have not.
“Government programs have increased available revenue, which in turn has supported the retail sector,” Cléroux said, adding that retail is running at 101 per cent of the pre-COVID-19 level in February because “people are spending, despite loss in revenue coming from other sources, namely work.”
These sectors need continued support
Pierre Cléroux, BDC
He added that it will be important to carry on with support for business segments most affected by the pandemic: accommodation and food services, entertainment and tourism.
“These sectors have suffered significantly from COVID-19 restrictions and need continued support,” Cléroux said.
Even with continued aid for the hard-hit hospitality sector, Restaurants Canada warned last week that without additional support an estimated 40 per cent of independent restaurants might not survive beyond next March. That would be on top of roughly 10 per cent of establishments that have already closed permanently.
The industry group is recommending targeted food service sector support, as well as further support to manage labour costs, rising debt and cash flow.
