The reopening of the economy in 2021 led to a bounceback in openings across all industries after months of abnormally low levels due to the COVID-19 pandemic, a reopening trend that, while slowing, didn’t significantly drop until the second quarter of this year, said Brown.
This is a “discouraging” sign, said Deloitte chief economist Craig Alexander, noting that the decline was reflected countrywide. “The decline in the business opening rate is a signal of the weakening of the Canadian economy and expectations of further economic weakness to come,” he said. “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