Every other month, CFIB members lend their opinions to 'Your Voice,' a survey exploring a variety of current topics. The latest takeaways are showcased in a series of informative charts that summarize these findings.
Small businesses are vital to Canada’s economy, and results from our April Omnibus survey reveal the present
financial health of the sector, how businesses are coping with the repayment of the Canada Emergency Business
Account (CEBA) loan, and the effects of the recent carbon tax hike.
The financial health across the small business sector varies widely: 29% are in strong shape, 37% are average, and
33% face challenges (with 25% indicating weak financial health, and a concerning 8% in critical condition).
The CEBA loan has had mixed outcomes for small businesses. Firms with solid financials tended to sidestep the loan
or repay it with their own funds. Notably, of businesses that used their own assets to repay their CEBA loan, 38%
report being in a strong financial position. On the other end, businesses that accrued additional debt to repay CEBA
appear to have deepened their financial difficulties, with just 10% reporting strong financial health. This pattern
underscores how a business’s financial situation directly influences its debt management capabilities and highlights
the risks of increased borrowing.
The recent hike in the carbon tax on April 1, 2024, has added pressure, with four in five businesses finding it hard to
cover other operational costs. As a response to this financial strain, businesses expect to make tough decisions
including raising prices for consumers (67%), cutting back on investments (39%), and implementing wage freezes or
reductions (30%). Most business owners (92%) urge the government to rebate the $2.5 billion in carbon tax revenue
to help businesses in all sectors.
Overall, some Canadian small businesses demonstrate resilience, while others confront significant obstacles. Loan
repayments reflect financial stability, and the carbon tax creates added financial stress, pushing businesses to make
tough economic choices.
Marvin Cruz
Director of Research
Explore more April 2024 insights and our extensive survey collection below.