Small business owners see Canada in recession: poll

A new poll of 150 small businesses in British Columbia suggests a challenging summer job market as many owners believe Canada is already in a recession.

According to a poll conducted by Merchant Growth, a company offering financial services to small business across Canada, this perception is leading businesses to scale back on spending and hiring.

David Gens, CEO and founder of Merchant Growth, say that nearly 60 per cent of the surveyed small businesses feel that Canada is currently in a recession or experiencing an economic downturn.

As a result, Gens highlights that the summer job market is looking “leaner” this year, as many businesses are not hiring the same number of seasonal employees.

Additionally, three out of four businesses are actively concerned about a potential recession within the next year.

“We have seen about 65 per cent of the businesses we surveyed have already cut spending in reaction to what’s going on,” Gens told 1130 NewsRadio.

He says some businesses are already reporting financial deficits.

“Small business owners are seeing revenue growth come in lower and lower as time goes on and eventually, in certain sectors, we are seeing that turn negative,” said Gens, adding that it’s especially the case in the food service industry.

In response to the pressures, Gens is calling on the provincial and federal government to support small businesses, specifically by “expanding the small business deduction limit or providing a refundable credit for supply chain diversification.”

—With files from Ben Bouguerra