Nearly a quarter of Quebec’s SMEs risk not making it to 2022, the Canadian Federation of Independent Business (CFIB) fears due to the fifth wave of COVID-19 powered by the Omicron variant.
According to the latest data collected by the CFIB, more than half of Quebec’s SMEs (55%) have not returned to their normal sales level, and of that poor half, 43% don’t think they will last more than a year.
Therefore, one in four small and medium-sized enterprises “is at high risk of not continuing to operate beyond next year,” the AU said. The union fears that new economic restrictions, which could be imposed by the Quebec government, threaten to “swallow it again”.
“The average debt of a Quebec small and medium-sized business is close to $100,000, and it could be as high as $206,944 for a restaurant with a dining room. The prospect of further economic restrictions or other cost increases shakes business leaders,” CFIB said in a statement Thursday.
The health status of SMEs is alarming […]. Small and medium-sized businesses in Quebec are very worried about this fifth wave, which could prove fatal to them, and are asking for reassurance to end the year in full swing. “It is important that the government avoid the new restrictions and embrace direct assistance if it is to reach that decision,” said François Vincent, vice president of Quebec at CFIB.
According to the CFIB, as of October 31, 1,454 corporate bankruptcies have been filed in Quebec, which is 60% of all cases filed in Canada (2,405). In comparison, Ontario has 594. It should be noted that small businesses contribute 30% of Quebec’s GDP.
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