Small Business, Big Impact, Big Pivot

The Ontario Chamber Network has been part of the launch of two reports recently, one by RBC
Economics called Small Business, Big Pivot and the other by the Ontario Chamber of Commerce (OCC) policy team called Small Business, Big Impact.  Both reports highlight the fact that small businesses were most impacted by the COVID-19 pandemic.

In the OCC report it is recognized that “the coronavirus has hit small business harder than the 2008 financial crisis. As a result of public health measures aimed at mitigating the virus, SMEs are facing unprecedented challenges to their survival, including reduced revenue, poor liquidity, disrupted supply chains, inflexible fixed costs, increased need for technology, navigating emergency government supports, and retaining employees.”

The OCC report goes on to show current challenges, including for those businesses in rural, northern
communities and First Nations.

The RBC report identifies five areas to help with recovery:
1. Streamline relief programs. As we shift to a recovery, the government has an opportunity to refresh and streamline its business relief programs. Most immediately, those options could include:

• topped up Canada Emergency Business Account (CEBA) and modified Business Credit Availability Program (BCAP) with greater forgiveness to cover a protracted recovery and help owners retrofit facilities for social distancing;
• changing the Canada Emergency Response Benefit (CERB) to allow for a sliding scale to be paid to those going back on payroll;
• offering a brief tax holiday for small businesses to spur the recovery of local shopping and tourism.
  
  

2. Invest in capacity for safe reopening. Provincial governments should consider investing in broad-
based programs to help employers restart their businesses. These could include:

• a nationally-coordinated program to certify public-facing facilities as COVID-safe;
• provincially-led and funded coalitions of business groups and chambers to provide personal protective equipment to small companies;
• an initiative to remotely connect students with small businesses to help them gain work skills and mentorship opportunities.
  
  

3. Build digital networks. Small firms will not only need tools for a post-pandemic economy, they’ll need to form alliances to compete in the global platform economy.  A recovery plan needs to incorporate a digital
strategy that could include:

• tax credits for small firms to invest in Canadian designed software and hardware to enable digital growth;
• a national program to create virtual farmers’ markets and virtual Main Streets;
• an acceleration of the Budget 2019 commitment to provide high-speed Internet to every Canadian and business by 2030.
  
  

4. Set new economic strategies to help scale. Governments and large enterprises have an
opportunity to invest in sectors that leverage Canadian supply chains and fuel small business growth, including:

• coordinated procurement efforts to designate preferred small business suppliers with a special focus on PPE, testing and tracking technologies and health care;
• Canada 2020-21tourism campaign to spur domestic travel;
• a renewed provincial commitment to lower interprovincial trade barriers for small firms in 2021.
  
  

5.Create a more strategic approach to globalization.
In a world that is likely to be more fragmented, Canada will need a more focused approach to trade. We may need:

• a “Go Global” program using trade accelerators to boost exports to countries more open to Canadian goods;
• a coalition of governments,
• banks and other institutions to form a “Brand Canada” platform for small firms;
• expanded expat networks to connect knowledge-based industries with global Canadians.

93% of the membership of the Peterborough Chamber of Commerce is a small business. These businesses are creating jobs and economic activity right across our region.  They are working hard to ensure the safety of their employees and customers. We remind everyone to be patient and helpful to our local businesses as they move through the reopening phase.