We’ve known from the outset that COVID-19 has had a larger impact on small and medium-sized 
businesses than it has on large businesses, especially in the retail sector.
The Mastercard Economics Institute recently released its Recovery Insights: Small Business Reset. This report highlights a lot of the challenges small businesses have faced as well as opportunities that are 
working.
As per Mastercard:
• Closures: Globally, small businesses that closed early in the pandemic were about 3x as likely as larger businesses to remain closed long term.
• E-Commerce: Following shutdowns, the number of small businesses going online each month tripled from pre-pandemic levels, peaking July 2020.
• Entrepreneurship: 
One-third more small retailers launched in 2020 compared to 2019, nearly 8x the number of larger firms created.
• Recovery: Consumer spending at small retailers is up 4.5% through August 2021 YTD compared to the same period in 2020, with e-commerce up over 30%.
These trends make a lot of sense. Smaller retailers are less likely to have as diverse of product and therefore less likely to have been labeled essential. 
Globally, it’s estimated that one-third of small businesses that closed in April 2020 remained closed after six months with about one-fifth remaining closed after 12 months. Mastercard also estimates that small and medium retailers have consistently underperformed compared to large retailers by 10 percentage points.
The other side of this shows the incredible resiliency of our business community. In the midst of a pandemic, the number of small retailers increased by a third! 
It’s also clear that investments in online have in many cases separated the businesses who are 
growing from those who aren’t. Mastercard’s analysis shows that digitally enabled small and medium retailers saw a 5% increase in customer spending and a 4.5% increase in transactions. They also found that 34% of e-commerce sales would not have occurred with only in-person shopping.
According to commerce platform Lightspeed, e-commerce growth may have peaked in 2020 at 32.4%, but it continues to steadily grow. Their research has found 64% of consumers now use ‘buy online, pick up in store’ services with 20% saying they use it regularly. Further driving the online trend is a shortage of retail staff leading to reduced hours and a lack of physical inventory due to supply chain disruptions. 
Investments in automation and upgrades to point-of-sale systems that integrate with online 
inventory are paying off.
While small online-only retailers are a growing trend, reports on the digital trend are quick to highlight that going online doesn’t mean an end to bricks and mortar retail — it’s an enhancement. Customers are looking for more ways to engage with their local businesses, including new ways to shop and a larger variety of payment options. Building up an online presence has a direct impact on improving and 
supplementing in-store sales.
It’s not too late to invest in digital infrastructure and e-commerce. Our COVID 
consumer habits aren’t expected to go away, even when the virus does. Our Digital Main Street team is available for free to help and check out our Love Local Marketplace at lovelocalptbo.ca to find some great local businesses who can help step up your online impact. 

​Business, both big and small, has been through the wringer over the last two years. It has been a saga involving improvising, 
adapting, pivoting and doing it all over again. And again.
I’m optimistic that the worst of the pandemic is behind us. At this point, it has to be, right?
2022 is going to be 
challenging, regardless of the pandemic. Planning for those challenges is going to be key.
The Business Development Bank of Canada recently published an article titled “What to watch in 2022” that lays out what to expect in the coming year:
• Pandemic uncertainty
• Supply chain pressure
• Inflation
• Rising interest
• Labour problems
Despite optimism, we really can’t predict all the zigs and zags of dealing with a 
long-term global pandemic. Back in late October the Government of Ontario rolled out its plan to ease back public health 
restrictions and return to “normal” by March. While optimistic, it didn’t seem like a stretch at the time. All this to say that business should continue to move forward planning for possible steps backward along the way. The current wave of 
infections isn’t expected to be the last, due in part to vaccine distribution 
inequality. 
Supply chain issues are 
certainly not new and 
neither is news that they aren’t going away. While pressure could ease later in the year, it could take years to clear up. As our recovery picks up, demand for 
product has increased. Manufacturing is 
increasing to meet demand, but it’s struggling with supply bottlenecks. Other products are piling up in warehouses unable to be shipped to their 
destinations. BDC notes that China’s zero-tolerance policy for outbreaks will lead to further closures of factories and ports.
Prices of goods, especially energy, fell at the start of the pandemic. This drop followed by a rapid hike at the end of last year caused a spike in inflation. Supply 
chain bottlenecks will further increase costs of some products. That spike of 4.7% isn’t expected to last, but BDC expects inflation to continue at over 3%, especially in the first half of the year.
Uncomfortably high 
inflation is likely to lead to rising interest rates. The Bank of Canada is expected to gradually hike rates soon as one of the tools to cool inflation. BDC notes one of the consequences of planning rate hikes is that it could heat up the real estate market further in the short term as people try to get ahead of the increases.
Labour challenges have been increasing and BDC is warning that they aren’t going to go away on their own. COVID both hastened retirements from baby boomers while stunting 
immigration — our main source of population growth. We’re continuing to hover around 1 million vacant jobs despite having returned to pre-pandemic workforce participation. This will continue to restrict investment and services, slowing growth through 2022. 
Dealing with the challenges of 2022 is going to involve intentional investments. Investments in sourcing as local as possible to minimize supply chain issues. 
Investments in retaining a loyal workforce and 
labour-saving technology. 
Investments in 
energy-saving practices and equipment. Most 
importantly, investments in our businesses not as a stopgap, but moving them toward where we want to be five to 10 years from now.
There will be more zigs and zags ahead, but we are moving ahead. 

​Our province and much of the rest of the world are back to dealing with significant business and social restrictions.
For this week’s Voice of Business column, we’re providing an overview of some of the support programs available from our federal and provincial governments to assist local businesses through another series of challenges. Some of these programs are brand new while others have been around for a while but may have been updated or enhanced. The Peterborough and the Kawarthas Chamber of Commerce and chambers across the country have been busy advocating for many of these programs, updates, and enhancements and we’re encouraged to see our governments continue to support our hardest hit businesses.
Government of Canada Expanded Access to the Lockdown Program
The Government of Canada is expanding access to the Local Lockdown Program to include employers subject to capacity-limiting 
restrictions of 50 per cent or more. They are also reducing the current-month revenue decline threshold 
requirement to 25 per cent. Eligible employers will receive wage and rent subsidies from 25 per cent up to a maximum of 75 per cent, depending on their degree of revenue loss. The 12-month revenue decline test continues to not be required in order to access this support.
This will apply from December 19, 2021, to February 12, 2022.
Expanded Worker Lockdown Benefit
The Canada Worker 
Lockdown Benefit is being expanded to include workers in regions where provincial or territorial 
governments have introduced capacity-limiting restrictions of 50 per cent or more. This benefit will provide $300 per week in income support to eligible workers who are directly affected by a 
COVID-19-related public health lockdown, and who have lost 50 per cent or more of their income as a result.
This program includes self-employed individuals. 
This will apply from December 19, 2021, to February 12, 2022.
Wage and Rent Subsidies
The Government of Canada changed some of its 
programs in the fall to a more targeted approach. Businesses can apply for wage or hiring subsidies as well as rent subsidies. 
Support is available through the Tourism and Hospitality Recovery Program as well as the Hardest-Hit Businesses Recovery Program. Eligible businesses in the tourism and hospitality sector are eligible for up to a 75% 
subsidy for wages and rent with other hard-hit 
businesses eligible for up to 50%.
Highly Affected Sectors Credit Availability Program
The Government of Canada is offering low-interest loans of $25,000 to $1 million to cover operational cash flow needs for businesses 
heavily impacted by COVID-19. Businesses can apply until March 31, 2022.
Additional programs:
• Canada Recovery Sickness 
Benefit – this program provides $500/week for up to six weeks for workers who are limited in their ability to work either from contracting 
COVID-19 or other health restrictions relating to 
COVID-19. This program includes self-employed individuals. 
• Jobs and Growth Fund – the federal government is looking to invest in businesses that support the transition to a green economy, foster inclusive recovery, improve digital adoption, and strengthen critical sectors.
• Indigenous Business Support – financial support is being offered to First Nation, Inuit, and Métis community or collectively-owned businesses and microbusinesses affected by COVID-19 that do not qualify for other relief programs.
• Various sector-specific support programs – the Government of Canada has rolled out a series of 
sector-specific programs offering support for 
businesses. Check Canada’s COVID-19 Economic 
Response Plan for more details.
Government of Ontario
Ontario Business Costs Rebate Program
Starting in mid-January, businesses will able to apply for a rebate for a portion of their property tax and energy costs incurred while subject to public health restrictions. Eligible businesses required to reduce capacity to 50 per cent, such as smaller retail stores, will receive a rebate payment equivalent to 50 per cent of their costs. Businesses required to close for indoor activities, such as restaurants and gyms, will receive a rebate payment equivalent to 100 per cent of their costs. A full list of eligible business types will be 
available through a program guide in mid-January. 
Payments to eligible businesses will be 
retroactive to December 19, 2021.
Tax Payment Relief
The Province is offering a six-month interest and penalty-free period for making payments for most provincially administered taxes, running from January 1 to July 1. The goal of this program is to free up short-term cashflow.
Regional Opportunities Investment Tax Credit
Businesses in the City and County of Peterborough are eligible for the Regional 
Opportunities Investment Tax Credit of up to $90,000 if they are building, 
renovating or acquiring an eligible commercial or industrial building. The tax credit will be available to claim on your corporate income tax return.
Pausing Commercial Evictions
The Province is temporarily stopping or reversing 
evictions of commercial tenants and protecting them from being locked out or having their assets seized during COVID-19. This applies to businesses that were eligible for the previous Canada Emergency Commercial Rent Assistance (CECRA) for small businesses program or who have been approved for the Canada Emergency Rent Subsidy (CERS).
For the full list of COVID-19 related business support programs, up-to-date news on public health measures, and links to resources, visit the Peterborough and the Kawarthas Chamber of Commerce COVID-19 portal at peterboroughchamber.ca/covid-19.