Inflation: SME optimism plummets

Inflation: SMB optimism plummets

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With soaring gasoline prices and ever-increasing inflation, short- and long-term small and medium-sized business (SME) optimism continues to slide, the report revealed. most recent Canadian Federation of Independent Business (CFIB) Business Barometer.

The situation is particularly felt in Quebec and Ontario, which saw their short-term confidence index drop by 4.5% and 6% respectively.

According to 77% of SME managers surveyed, the The main obstacle to the growth of their business remains the price of fuel, while the shortage of labor is found to be the number one constraint for half of SME owners (50%).

“SME leaders continue to feel the pressures of rising costs and labor and product shortages. This explains why many are worried about the future. And with inflation climbing, many SMEs have yet to return to normal operating conditions,” said CFIB Director of Economics Andreea Bourgeois.

– Listen to the interview of Guillaume Lavoie with Francis Bérubé on QUB radio:

Debts linked to the pandemic as well as rising costs are jeopardizing the survival of many SMEs. At least that's what you can see when you take a look at CFIB's Small Business Health Tracker.

“Political leaders say businesses are doing well right now , but this is not at all the case for 54% of SMEs which have not returned to normal income,” mentioned Simon Gaudreault, Vice-President of Research and Chief Economist.

To help them, CFIB is calling on the federal and provincial governments to temporarily eliminate or reduce fuel excise taxes or freeze planned carbon tax increases. CFIB also calls for the removal of the “tax anomaly of imposing taxes on taxes by applying sales taxes to fuel taxes”.