Small Business Month

2020

Small Business news in Canada

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S M A L L B U S I N E S S M O N T H - S U P P L E M E N T T O T H E W I N N I P E G F R E E P R E S S - S A T U R D A Y , O C T O B E R 1 7 , 2 0 2 0 2 TRUST What makes people small businesses? BBB.org/SMALLBUSINESS A number of key sectors, including agriculture and manufacturing, were doing well at the time and many economic forecasters were calling for steady, although not spectacular, growth. That all changed in March when the COVID-19 pandemic gripped the province and effectively forced many businesses to curtail their operations and, in some cases, temporarily close their doors. "Obviously, everything changed with COVID and everything changed for business as well," says Chuck Davidson, president and CEO of the Manitoba Chambers of Commerce (MCC). "The key sectors that have been the most impacted, and I don't think this is a surprise to anyone, are in the service sector, whether it's retail or hospitality or restaurants and hotels. These are key industries that are big economic drivers that are not going to be back to pre-pandemic numbers for quite some time." That's especially true for many small businesses. A recent report authored by the Canadian Federation of Independent Business (CFIB) suggests it could take up to a year and five months for small businesses to return to return to normal sales. Considering that about 97 per cent of companies in Manitoba are considered small businesses (99 or fewer employees, according to Statistics Canada) and employ 72 per cent of all workers, it's not difficult to see the impact such a slow down could have on the overall economy. Davidson explains that's why it's now more important than ever that people in Winnipeg and rural Manitoba support small businesses. "That's a key part of what the MCC is continually encouraging is, regardless of whatever community you're in, go out and support those small businesses," he says. "It might sound hokey, but those small business owners are the backbone of our economy and those people need our help right now." While recent economic news has been trou- bling, Davidson points out there have still been some positive developments when it comes to the Manitoba economy. One recent economic forecast from RBC indicated that while Manitoba's gross domestic product is expected to shrink by 4.5 per cent in 2020, that's a far smaller reduction than is expect- ed in most other provinces. Davidson says one of the main reasons Manitoba has been able to weather the economic storm is that the province moved quickly after the first wave of COVID-19 to put measures in place to limit the spread of the virus. "What it allowed us to do was reopen our economy sooner than a lot of other jurisdictions, whether it was reopening restaurants to 50 per cent capacity or retail being able to open. In terms of bringing back employees, Manitoba has done well too. I think we're somewhere between 90 and 95 per cent," he says. "That's all had a positive impact on our economy." Another encouraging development is the fact the rural economy has experienced minimal interruptions during the pandemic. Some rural industries, such as agriculture, mining and manufacturing, haven't really been impacted by the coronavirus. And unlike many tourism-dependent businesses in Winnipeg that were devastated by the pandemic, many rural tour operators actually enjoyed an increase in their bottom line this summer. "A lot of Winnipeggers and Manitobans spent the summer travelling around the province instead of going elsewhere," Davidson says. "As a result, a lot of tourism providers outside of Winnipeg told us that they had the best summer they had in the history of their organizations." Despite the many challenges Manitoba business owners have faced of late, Davidson says most of those he's spoken with remain optimistic about the future. That said, there is concern about the impact a second wave of the virus could have on businesses. The province instituted strict new measures for Winnipeg and surrounding communities on Sept. 28 that made mask use mandatory at all indoor public spaces, including bars and restaurants, as the number of confirmed cases of COVID-19 in the city began to climb dramatically. "A lot of businesses have been accessing programs and tax deferrals or mortgage deferrals. A lot of those things are coming due and businesses are not sitting on huge piles of cash to pay for them. It's like a second economic wave and there's going to need to be continued economic help for business to get through this," Davidson says, adding the MCC would like to see the federal and provincial governments help businesses cover the costs of purchasing items such as safety shields and PPE. ■ By Jim Timlick "A lot of businesses have been accessing programs and tax deferrals or mortgage deferrals. A lot of those things are coming due and businesses are not sitting on huge piles of cash to pay for them." - Chuck Davidson, president and CEO of the Manitoba Chambers of Commerce (MCC) Back in January, the Manitoba economy appeared poised for a solid performance in 2020.

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