Inflation is beginning to weigh heavily on the shoulders of many business leaders according to a recent study by the Canadian Federation of Independent Business (CFIB).
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Although the peak of inflation is behind, operating costs are still higher than before. The pressure is so strong at the start of the year that entrepreneurs claim that their situation has deteriorated compared to last year.
According to the CFIB survey released on Monday, 64% of SME managers say they have suffered significant impacts from rising prices on their business.
And the pressure is even greater for small businesses with fewer than five employees.
“When we look at our results, we see that the leaders of small businesses will work more hours than the average. Smaller companies will be less likely to transfer the price to the customer, but more likely to reduce their investments. We can clearly see that it is running out of steam for SMEs and that it greatly weakens small businesses,” explained François Vincent, vice-president for Quebec of the Canadian Federation of Independent Business.
According to the Chamber of Commerce and Industry of Rimouski-Neigette, the results of the study represent well what is happening in the entrepreneurial environment of Rimouski. The lack of predictability worries many entrepreneurs.
“Interest rates, rate increases, taxes, the possible increase in electricity rates for merchants, all of this creates uncertainty. The watchword is “concern”, everyone is preoccupied, worried. We will continue to do business, there are great projects, but what the future will hold 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, asking it to act on certain levers to allow business leaders to breathe.
“The government can act tomorrow morning on two levers, as it did for the citizens; on government cost containment and taxation,” Mr. Vincent said.
According to the CFIB study, 94% of entrepreneurs would like the government to apply its anti-inflationary measures to SMEs. A boost that might help companies get through this difficult period.
“And the upcoming budget is also an opportunity to seize to ease the tax burden on small businesses,” concluded Mr. Vincent.
