CFIB raises estimate of small businesses at risk of closing permanently

TORONTO — The Canadian Federation of Independent Business (CFIB) is raising its estimate for the number of businesses that are considering closing permanently.

The organization says one in six or about 181,000 Canadian small business owners are seriously contemplating permanently closing, based on a survey of its members done last week.

Based on the forecast it says that means more than 2.4 million jobs are at risk.

An estimate by the CFIB last summer said one in seven or 158,000 businesses were at risk of going under as a result of the pandemic.

Annie Dormuth with the Alberta branch of the CFIB said our province has the worst outlook.

“That was the case back in June and July and is the case again in January 2021 with 22 per cent of Alberta small businesses at risk of closing which is significantly higher than the national average. As well, as putting us a little higher than some of those provinces with stronger restrictions and stronger lockdown measures.”

She added that small businesses need better communication from the provincial government about what the plan is for reopening.

Many businesses have called for clarity in reopening plans including the Airdrie Chamber of Commerce who sent a letter to their MLAs expressing the confusion and frustration of the business community.

Dormuth said the government previously hosted town halls and teleconferences with small businesses and wants that line of communication to be revisited.

“We really do need to get off this yo-yo of opening and re-closing and developing a clear pathway for these businesses to reopen and remain open,” said Dormuth.

CFIB says the latest estimate is on top of the 58,000 businesses that became inactive in 2020.

It says in total, one in five businesses are at risk of permanent closure by the end of the pandemic.

On Monday, the Alberta government allowed personal care businesses such as salons and tattoo parlours to reopen by appointment only.

Many of those businesses threatened to open despite public health measures with some in Lethbridge and Innisfail doing so. Owners of those businesses said they could not afford to keep their doors shut and that they were not adding to the rise in COVID-19 cases.

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