July 5, 2022

The Queens County Citizen

Complete Canadian News World

One of the four SMEs will close in 2022

One of the four SMEs will close in 2022

The Canadian Federation of Independent Business (CFIB) has indicated that one in four SMEs may close their doors permanently by the end of the year, especially if they are already in debt through previous waves.

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“Surely after two years of epidemic, apparently, the many arrests we have faced, the many SMEs, the arrival of such a variant is bound to raise a lot of questions for entrepreneurs,” said Francis Berube, CFIB Senior Policy Analyst. .

The latest regulatory measures are hurting many businesses. Cineplex has laid off nearly 1,000 employees. Air Transat announced the cancellation of almost a third of its flights.

“Many companies are stuck in debt to get this, and eventually, it’s telling itself that it’s going to reopen and that operations are going to resume a little bit normal, and that companies, in quotes, are going to have to start all over again.

Government assistance programs are more than necessary to prevent bankruptcy. But with these new sanctions, bankruptcy cases against entrepreneurs are now on the rise.

“Business insolvency is at an all-time low of 35,” he said. Then it’s thanks to various state support programs. This has helped many businesses. But these programs are temporary. There are a lot of these programs … completed or closed. So in the end, things will be normalized, “said Mr Berubey, chief of The Christian Science Monitor’s Washington bureau.

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In an effort to keep their heads above water, companies have adapted to the new reality.

“In retail, some companies have migrated to online shopping; In the restaurant business, companies that have emigrated for delivery. But companies that do not make these changes will certainly face more difficulties in crossing over very simply, ”Mr. Saward said.

In addition to all these challenges there is a shortage of workers, which has been plaguing SMEs for the past few months.

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