Only 29% of Canada’s Small Businesses Are Back to Full Sales

(Bloomberg) -- Six months after the Covid-19 shutdowns, more than two-thirds of Canadian small businesses still haven’t returned to full sales, according to a new report.

Only one in three, or 29%, of small- and medium-sized companies surveyed by the Canadian Federation of Independent Business said they’re back to “normal or better” sales as of Sept. 16. That number is largely unchanged since mid-July.

The report coincides with recent data that suggest the economic recovery is losing momentum after a quick initial rebound in the summer. Many businesses still face capacity restrictions imposed by provincial and local authorities to curb the virus outbreak. Those restrictions may get tighter, with some cities experiencing a spike in new cases.

“This underscores the need to kick the recovery into a higher gear,” Laura Jones, chief strategic officer at CFIB, said in the report. “The current situation just isn’t sustainable.”

At the current pace, the average business won’t see sales return to normal levels for another 17 months, the CFIB said. That doesn’t bode well for country’s outlook, considering how important small firms are for the economy. As of June, 98% of companies employ fewer than 100 people, data from Statistics Canada show.

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