The sharp pullback in openings, which is also down by almost 49 per cent compared to the same quarter in 2019, marks a shift from the sense of optimism last year among consumers and business owners as vaccines were rolled out and restrictions eased, said Jeff Brown, Equifax’s head of commercial solutions.Sign up to receive daily headline news from the Ottawa SUN, a division of Postmedia Network Inc.
Brown said the lack of openings this year come as small businesses, which make up the bulk of new openings, struggle with inflation, decreased consumer spending, increased debt from pandemic loans, and supply chain problems.Business openings are a sign of economic optimism, and so a drop in openings is a sign of the opposite, a sense of pessimism about what’s to come, said Alexander. Like many market watchers, he believes that Canada’s economy is headed for a recession.
“Whether you’re an existing small business, or you are an entrepreneur thinking about starting a small business, this is an incredibly difficult time,” said Kelly.Existing small businesses are also still dealing with the COVID-19 hangover, with fewer than half back to normal sales and many struggling with extra debt, said Kelly.Article content