The various announcements made by Quebec Thursday will once more weaken SMEs, worries the Canadian Federation of Independent Business (CFIB), which urges the government to review its plans.
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As we enter a third year marked by economic restrictions due to the pandemic, the resilience of small business owners who juggle these repeated closures “will sooner or later reach their limits,” the CFIB has warned.
“Before the December restrictions were put in place, nearly one in four SMEs did not expect to make it by the end of 2022 due to sub-par revenues. For SME leaders who have to shut down their business or slow down service delivery yet once more, it’s the equivalent of running a never-ending marathon, ”said François Vincent, CFIB Vice-President for Quebec, by press release, Friday.
The CFIB stresses that the level of debt contracted due to COVID-19 is “worrying”, reaching $ 200,000 on average for restaurateurs with dining room and $ 100,000 on average for Quebec SMEs.
“For restaurateurs, it will be a difficult blow to pass and it is, along with gyms, cinemas, events and entertainment centers, one of the sectors hardest hit by the restrictions. For retail businesses, we may wonder regarding the Sunday closing, which will generate very high demand on Saturdays. This is why we are asking the Quebec government to allow curbside pickup for Sunday, ”added Mr. Vincent.
The Federation is also concerned regarding the impact of the postponement of the start of the school year to January 17 for primary and secondary schools. In fact, with nearly two out of three SMEs facing a labor shortage, the absence of employees who must take care of their children will increase the pressure on these SMEs.
“Half of the businesses in Quebec have fewer than five employees. So, for them, losing an employee represents a 20% reduction in the production force, ”said François Vincent.
The Federation, which believes that business closures should be adopted “as a last resort only”, also asks the government to improve the management of rapid tests to democratize them, and to assess the possibility of reducing the duration of the confinement of people. without symptoms.
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Quebec’s Latest Announcements to Weaken SMEs: An Analysis
As the third year of economic restrictions due to the pandemic continues, Quebec’s small and medium-sized enterprises (SMEs) are bracing themselves for another wave of challenges. Recent announcements made by the Quebec government have sparked concerns among the business community, with the Canadian Federation of Independent Business (CFIB) warning that these measures will further weaken SMEs.
The CFIB has urged the government to review its plans, citing the resilience of small business owners who have been juggling repeated closures and restrictions. As we examine the situation, it becomes clear that the road ahead will be challenging for SMEs operating in Quebec.
To understand the context of this issue, it’s essential to consider the broader business landscape in Quebec. According to the Business Corporations Act ([[1]]), Quebec has its distinct set of laws and regulations governing businesses. For foreign entities considering doing business in Quebec, it’s crucial to grasp the province’s unique linguistic, cultural, and legal systems ([[2]]).
In terms of corporate law, Quebec offers various alternative legal structures for carrying on commercial activities ([[3]]). However, despite these options, SMEs are facing unprecedented challenges.
The repeated closures and restrictions have put a strain on SMEs, with many struggling to stay afloat. Restaurant owners, in particular, are furious about the latest measures, which will only exacerbate their plight.
As the CFIB has warned, the resilience of small business owners will soon reach its limits. The Quebec government must take these concerns seriously and review its plans to ensure that SMEs receive the support they need to survive.
the recent announcements made by the Quebec government are set to weaken SMEs further. As a famous blog news writer, I urge the government to reconsider its plans and provide essential support to small business owners. The survival of SMEs is crucial for the economic well-being of Quebec, and it’s time for the government to take decisive action.
