It exhibits that the price of doing enterprise grew 600% extra between 2020 and 2021 than it did between 2013 and 2019 and this has hit companies arduous with 65% saying they’ve felt the detrimental influence of rising prices.

Price of not doing enterprise

After all many Canadian SMEs mitigated the devastating results of the pandemic on their enterprise by accepting authorities assist, most notably the Canada Emergency Enterprise Account (CEBA) mortgage.

However hundreds of small companies will lose the forgivable portion of those loans on the finish of 2023, which is able to add as much as $20,000 extra to their debt and trigger them to face 5% curiosity on the complete stability.

The Canadian Federation of Unbiased Enterprise says 250,000 SMEs will probably be affected, that’s 19% of all small companies in Canada, until the federal government extends the deadline for reimbursement.

“The message from small companies is loud and clear: they want extra time to repay their CEBA mortgage. With solely half of small companies again to regular gross sales, most companies — significantly within the arts, recreation, hospitality and the service sectors — will want additional runway,” mentioned Dan Kelly, CFIB president. “Monetary establishments nonetheless have time to delay reimbursement processes if the federal government extends the CEBA deadline, however that window is closing. Ottawa must act now.”