Courtesy of COVID-19, small businesses can be said to have joined the Sea Turtles on the 2020 list of Endangered Species. Think we’re being over dramatic? The stats say otherwise.
COVID-19 Impact Survey Week 4 Results released April 28th 2020 by the Edmonton Chamber of Commerce show local businesses have seen unprecedented drops in revenue with staff layoffs of 60%. More than 40% have shut down their offices. 3% for good with 53% believing they will have to in future. These stats cannot be limited to the just the Edmonton market.
When a business closes, even temporarily, this puts individuals out of work and paycheques at risk. If you follow the Velocity of Money theory where $1 spent is actually re-spent in an economy several times benefiting more than the original vendor, a contracting economy slows this and worse, when folks then save rather than spend, the economic fallout is multiplied further still. It is also the reason that supporting local businesses is key to a successful community. Dollars spent locally benefit others who spend locally too.
As someone who has worked for many years in Finance supporting Businesses these stats are heartbreaking.
Business owners take real financial risks putting their savings, incomes and retirements on the line to provide products and services and create jobs. In a best case, they can provide for their own loved ones and have satisfaction knowing they have successfully walked the fine line between profitability and losses. They too have hopes of enjoying a retirement and of leaving a financial legacy.
Red Seal Financial will continue to do what it can to support local business owners with its resources and time. We offer real insight on how to manage the challenges businesses face.