Governments across Canada have imposed severe restrictions on business activities as part of their plans to fight COVID-19. Many restrictions have since been relaxed, but small businesses have not returned to normal activity. CFIB estimates that if recovery maintains its current pace, it will take small businesses a year and five months to return to normal sales, with the hospitality sector taking more than eight years.
|Hospitality (E.g. restaurants, hotels)||8 years 3 months|
|Enterprise & Administration Management (E.g. staffing agencies, building management)||5 years 4 months|
|Professional Services (E.g. law firms, accounting)||2 years 7 months|
|Finance, Insurance, Real Estate & Leasing||2 years 2 months|
|Natural Resources||2 years|
|Construction||1 year 10 months|
|Personal, Miscellaneous Services (E.g. dry cleaners, mechanics)||1 year 6 months|
|Retail||1 year 5 months|
|Average for all sectors||1 year 5 months|
|Manufacturing||1 year 2 months|
|Arts, Recreation & Information (E.g. golf courses, gyms)||1 year 1 month|
|Social Services (E.g. dentists, chiropractors)||9 months|
If nothing is done in the short term to kick their recovery into higher gear, they are likely headed for the dreaded “L-shaped” recovery, meaning that the steep recession of the last few months would be followed by an extended period of depressed employment, investment, production and sales among Canadian independent businesses, plus of course closures. It also shows how far we are from normal and can help assess what level of support is still needed from governments, consumers and communities so our local economies can get through this economic crisis.
|Sept. 2020||Are Canadian small businesses headed for an L-shaped recovery?|