Small business lobby groups say commercial bankruptcies are on the rise in Canada and more small businesses are at risk of closing.
Statistics Canada data show that small business bankruptcies are on the rise from May 2021 onwards.
However, according to the Federation of Independent Businesses of Canada, its own survey data shows only 10% of Canadian small businesses. Owners file for bankruptcy if the business becomes insolvent.
46% of business owners said they would simply cease operations without going through bankruptcy proceedings.
According to the CFIB, more than one in six of his Canadian small business owners are currently considering going out of business.
A lobby group is seeking government help to help Canada's small business sector navigate the coming months and cope with challenges such as pandemic-related debt and supply chain issues.