According to a recent study by the Canadian Federation of Independent Business (CFIB), inflation weighs on the shoulders of many business leaders.
Although the peak of inflation is behind us, operating costs are still higher than before. The pressure is so great at the beginning of the year that entrepreneurs claim their situation has worsened compared to last year.
According to the CFIB survey released on Monday, 64% of SME managers say they have suffered a significant impact from rising prices on their business.
And for small businesses with fewer than five employees, the pressure is even greater.
“If we look at our results, we see that small business leaders work more hours than average. Smaller companies are less likely to pass the price on to the customer, but are more likely to reduce their investment. We can clearly see that it is losing momentum for SMEs and that it is severely weakening small businesses,” said François Vincent, vice president for Quebec of the Canadian Federation of Independent Business.
A climate of insecurity
According to the Rimouski-Neigette Chamber of Commerce and Industry, the results of the study represent well what is happening in the Rimouski business environment. The lack of predictability worries many entrepreneurs.
“Interest rates, tariff increases, taxes, the possible increase in electricity tariffs for retailers, all of this creates uncertainty. The watchword is concern, everyone is busy, concerned. We will continue doing business, there are great projects, but the future is more uncertain,” explained Jean-Nicolas Marchand, Director of the Rimouski Chamber of Commerce and Industry.-Snow.
Both the Chamber of Commerce and the CFIB are challenging the government and urging it to act on certain levers to allow business leaders to breathe.
“The government can act on two levers tomorrow morning, as it did for the citizens; to contain government costs and taxation,” Mr Vincent said.
According to the CFIB study, 94% of entrepreneurs would like the government to apply its anti-inflation measures to SMEs. A boost that could help companies get through this difficult period.
“And the forthcoming budget is also an opportunity to reduce the tax burden on small businesses,” concluded Mr. Vincent.