Confidence among Canadian small businesses has declined as retailers continue to grapple with inflation and labour shortages, according to a survey by the Canadian Federation of Independent Business (CFIB).
The November survey results indicate that optimism among small business operators, particularly in the retail sector, has declined to the lowest level on record heading into the pivotal holiday shopping season.
CFIB said high costs due to inflation, an ongoing lack of staff, and interest rate hikes have left businesses uncertain about their future ability to continue operating.
The CFIB’s “optimism index” is currently at 43.8, down 50 points and bringing it to the lowest level outside the 2008-2009 financial crisis and start of the COVID-19 pandemic in March 2020.
Optimism was lowest for businesses in the financial sector, while retailers had the second-lowest optimism in their outlook for the next year.
Seventy-one per cent (71%) of businesses said fuel and energy was the top factor limiting their ability to grow. Labour shortages were also reported as a major hurdle.
CFIB said that optimism is typically at its highest level for the year heading into the holidays, making the latest survey results highly unusual.
The November poll results are based on 719 responses from a stratified random sample of CFIB members, to a controlled-access web survey. The findings are considered statistically accurate to +/- 3.7%, 19 times out of 20.
