RBC report underscores vital need to focus on small business recovery
Toronto: June 11, 2020 – Today, the Royal Bank of Canada (RBC) released Small Business, Big Pivot: A devasting downturn, and how Canadian enterprises can transition. The report contains proprietary economic research which outlines how the landscape has shifted for small- and medium-sized enterprises (SMEs) during the COVID-19 pandemic. The document also includes a tangible plan to help Canadian small businesses thrive in a post-pandemic economy.
“The majority of our Members are small businesses: they are the cornerstones of our community and the engine of Ontario’s economy,” says Charla Robinson, President of the Thunder Bay Chamber of Commerce. “The data presented in RBC’s report echoes the concerns that we have been hearing from small businesses, one of the groups hardest-hit by the COVID-19 pandemic.”
RBC’s analysis found that small firms experienced twice the number of job losses in comparison to mid- and large-sized firms in Canada. Women, youth, minorities, and First Nations were found to have been particularly impacted since they tend to be employed within the most disrupted parts of the small-business economy. The report also identifies which industries face significant challenges (i.e., accommodation and food service) and those that are in a stronger position to manage short-term losses (i.e., manufacturing and wholesale trade).
“Small Business, Big Pivot underscores that small firms need to leverage new technologies with the aim of adapting to the virtual economy. The report identifies the rise in e-commerce as Canadians take advantage of online shopping and home delivery options. Small businesses that have successfully leveraged technology and online platforms are identified as remaining resilient during this unprecedented period. Yet, changing consumer trends present challenges for small firms, especially those that are digital novices, have limited capital, or are located in parts of the province with poor or unreliable broadband internet access.
“As consumer behavior shifts, the ability of small businesses to adapt and pivot will be a major determinant of Ontario’s long-term economic recovery. While the federal and provincial governments have taken swift action and extraordinary steps to keep small businesses afloat, permanent closures will have ramifications for local supply chains, workers, and communities alike. Policymakers, therefore, should consider the recommendations contained in Small Business, Big Pivot, as we continue to strengthen small businesses and work towards Canada’s economic rebuild,” says Rocco Rossi, President & CEO of the Ontario Chamber of Commerce.