Canadian small businesses are more confident about survival

Canadian small businesses are more confident about survival
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TORONTO – In the latest survey from The Business Monitor, released by Modus Research, Canadian executives were asked how long their organizations could remain viable, assuming current public health restrictions remain in place. This question was asked in the spring, fall and winter of 2020.

The results show that Canadian SMEs (Small and Medium-sized Enterprises) are much more confident than they were at the beginning of the pandemic. In April 2020, 44% of SMEs thought they would be out of business in less than six months and only 20% of SMEs thought they could last more than 2 years.

When SME executives were asked again in the fall, just 1 in 6 now thought they would be out of business in under 6 months (about one-third of the number from the spring). The number that said they could last more than 2 years more than doubled and reached a majority by the end of 2020.

This survey was carried out among a representative sample of over 700 Canadian managers and executives at the end of 2020. Unlike other business surveys, the sample is fully random and representative of all Canadian businesses.

Large numbers of SMEs are also upbeat about a full recovery. Canadian businesses were asked wether or not they expect their organization to fully recover to pre-COVID conditions. Although the results show that larger organizations are more optimistic than SMEs, fully 7 in 10 of SMEs expect a full recovery.

Importantly, amongst those businesses that have yet to recover, SMEs believe they can recover more quickly than larger organizations with 63% of SMEs expecting to do so within a year, compared to 53% of larger organizations.

Established in 2012, Modus Research is a full-service research agency that provides clients with actionable feedback from Canadian enterprises based on scientifically representative samples.

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