Canadian Small Business Resilience and Insurance Strategies
In the face of economic uncertainties and ongoing challenges, Canadian small business owners remain remarkably optimistic about the future. Despite the lingering effects of the COVID-19 pandemic and concerns over rising interest rates and inflation, a recent survey paints a picture of resilience and forward-looking optimism within the small business community.
Confidence Amidst Challenges
The survey findings reveal that a substantial majority (71%) of Canadian small business owners and self-employed professionals are confident that their businesses will thrive throughout the remainder of the year.
This optimism stands strong in the face of economic headwinds, showcasing the determination and adaptability of entrepreneurs across the country.
However, it’s not all smooth sailing. Nearly 60% of respondents acknowledged that the state of the economy had negatively impacted their businesses during the first half of 2023. Concerns regarding inflation, rising interest rates, the need to raise prices, and the escalating cost of gasoline were among the top worries shared by Canadian business owners.
Read our blog on Canada’s Federal Fall Economic Statement 2023: Funding Takeaways, which dives into why there are reductions in public sector spending and learn about the government’s priority sectors.
Regional Disparities and Resilience
Interestingly, the survey also uncovered regional disparities in how business owners perceive the economic effects on their ventures. In Ontario, 24% of respondents expressed negative impacts on their businesses, while only 12% in British Columbia and 10% in Alberta shared similar sentiments. Canadian small businesses are grappling with managing costs but are also displaying optimism, resilience, and forward-thinking strategies in a challenging economy.
Embracing Risk Management
One of the key takeaways from the survey is the recognition among Canadian small business owners of the importance of proactive risk management. 63% of respondents cited mitigating liability risks as a top priority, underscoring a strong commitment to safeguarding their businesses against potential threats.
Moreover, the survey highlights the prevalence of business insurance among Canadian small businesses, with 87% of respondents reporting being insured. Despite this, concerns arise regarding the 13% who remain uninsured.
In a separate survey, 57% of small businesses report a lack of cybersecurity training among their ranks. Read our blog on the measures Canadian businesses are taking to improve their cybersecurity awareness.
Navigating Insurance Purchases
When it comes to purchasing insurance, the survey sheds light on the decision-making process of small business owners. While 46% of respondents shop around for insurance rates annually, 22% do so every few years. However, 8% reported never shopping around, a concerning trend given the dynamic nature of business needs and insurance offerings.
Factors such as cost, customized coverage, financial protection, and ease of acquisition play pivotal roles in the decision-making process. Additionally, the influence of advisors, mentors, and peers emerges as a significant factor, with many business owners seeking guidance from insurance brokers, mentors, or trusted recommendations.
Government grant programs are an excellent way to cut costs and invest your money in the right areas of your business. Contact us today to determine whether your business projects are eligible for cost coverage!
Accessing Government Grants in Canada
Did you know that both Federal and Provincial governments in Canada support small businesses by subsidizing costs for business expansion and projects? No matter your industry, you can receive funding to cover your capital & tech adoption costs, research & development costs, business expansion costs, and hiring & training costs.
If you are looking to train your existing staff, the Canada Job Grant (CJG) has a different provincial stream for each province, where businesses can apply to receive up to 50-100% in cost coverage.
Download our popular Business Funding Guide to learn about existing grant programs, how to apply, and how to align your business projects with the government’s priorities.
