More than 80 per cent of businesses impacted by pandemic: study
Published May 5, 2020 at 12:11 am
More than 80 per cent of small businesses have been negatively impacted by COVID-19.
According to a recent study commissioned by CIBC, 81 per cent of small business owners say the pandemic has had a negative impact on their operations.
Moreover, 32 per cent of owners expressed concern for the viability of their business over the next year.
As well, 85 per cent of business owners agree the uncertainty regarding how long quarantine measures will last is the hardest aspect of the pandemic to manage.
According to the findings, 54 per cent of business owners say they’ve seen a decrease in sales during the pandemic, while 28 per cent have had to shut down altogether.
In order to survive the crisis, 34 per cent of businesses have had to reducer operating costs, while 29 per cent have had to dip into their savings, 25 per cent have had to lay off staff, and 15 per cent have had to apply for more credit.
Additionally, 29 per cent of business owners believe the fallout from the pandemic will last for at least a year and possibly longer.
“It’s clear that entrepreneurs still believe in their opportunity to grow over the longer term, but are facing significant issues right now that are leading some to question if they can sustain their business long enough to move into recovery mode,” Laura Dottori-Attanasio, senior executive vice-president and group head of Personal and Business Banking for CIBC, said in a news release.
“Seeking the right guidance and advice can help businesses restructure their finances to weather the current circumstances, and plan for the future as the situation evolves,” she continued.
However, despite how dire things have been, 76 per cent of business owners are confident they’ll be able to rebound after the crisis ends.insauga's Editorial Standards and Policies