According to the report, 46% of business owners will simply cease operations without going through bankruptcy proceedings.
Article:
Canadian Press
A small business lobby group warned that commercial bankruptcies in Canada are And more small businesses are at risk of closing.
Small business bankruptcies have been on the rise since May 2021, according to Statistics Canada data. Only 10% file for bankruptcy when the business is no longer solvent.
46% of business owners said they would simply cease operations without going through bankruptcy proceedings.
"Canada's official data on small business bankruptcies does not consider zombie firms or firms that would rather shrink than file for bankruptcy," said Simon Gaudreau, chief of the CFIB and his economist. said Mr.
"Our research provides a broader perspective on corporate bankruptcies in Canada and shows that the rise in small business bankruptcies is just the tip of the iceberg."
49} CFIB data shows that 54% of business owners have not yet returned to normal pre-pandemic revenue levels and 62% still have pandemic debt.The group also said more than one of his six Canadian small business owners are currently considering going out of business.
A lobby group is calling for 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.
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