COVID-19: The State of Small Business (Week 5) · 7 $62,637 $129,566 $160,314 $214,915 $203,461...

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COVID-19: State of Small Business Key weekly survey results – Week 5 For public release 2020-04-15

Transcript of COVID-19: The State of Small Business (Week 5) · 7 $62,637 $129,566 $160,314 $214,915 $203,461...

Page 1: COVID-19: The State of Small Business (Week 5) · 7 $62,637 $129,566 $160,314 $214,915 $203,461 Survey No. 1 Survey No. 2 Survey No. 3 Survey No. 4 Survey No. 5 Sources: CFIB, Your

COVID-19: State of Small Business

Key weekly survey results – Week 5

For public release

2020-04-15

Page 2: COVID-19: The State of Small Business (Week 5) · 7 $62,637 $129,566 $160,314 $214,915 $203,461 Survey No. 1 Survey No. 2 Survey No. 3 Survey No. 4 Survey No. 5 Sources: CFIB, Your

Methodology

• Online survey (Your Business and COVID-19 – Survey Number Five) started April 10.

• So far, it has received 10,969 responses from small businesses from across Canada.

• For comparison purposes, a probability sample with the same number of respondents would have a margin of error for national results of +/-0.9%, 19 times out of 20.

• Note on the next pages: The percentage of responses in charts may not always add up to 100%, due to rounding or multiple choice responses.

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Page 3: COVID-19: The State of Small Business (Week 5) · 7 $62,637 $129,566 $160,314 $214,915 $203,461 Survey No. 1 Survey No. 2 Survey No. 3 Survey No. 4 Survey No. 5 Sources: CFIB, Your

As of today, is your business still open? (% response)

3

12 1318 18 19

21 2226

3032

34

QC PE ON NL NB CA NS BC SK MB AB

4 6 913

20 21 21 23 24 27 28 29 30 3338

59

Source: CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results, n = 10,908.

Note: The percentage of responses may not always add up to 100% due to rounding.

Yes, fully open21

Yes, partially open due to COVID-19

(shorter than normal hours, delivery or

telephone sales only, emergencies only)

50

No, fully closed due to COVID-19

28

No, fully (or partially) closed

due to reasons not related to COVID-19 (new business, seasonal business)

2

"Fully open"

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As of today, is your business still open? (% response)

21

50

28

2 -

10

20

30

40

50

60

Survey. No 2 Survey. No 3 Survey. No 4 Survey. No 5

Yes we are fully open

Yes, partially open due to COVID-19

No, fully closed due to COVID-19

No, fully (or partially) closed due to reasons not related to COVID-19

Sources: CFIB, Your Business and COVID-19 – Survey Number Two, March 20 - March 26, 2020, n = 13,313.CFIB, Your Business and COVID-19 – Survey Number Three, March 27 - April 2, 2020, n = 12,561.CFIB, Your Business and COVID-19 – Survey Number Four, April 3 - April 9 2020, n = 12,943.CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results, n = 10,908.

Note:The percentage of responses may not always add to 100% due to rounding

Page 5: COVID-19: The State of Small Business (Week 5) · 7 $62,637 $129,566 $160,314 $214,915 $203,461 Survey No. 1 Survey No. 2 Survey No. 3 Survey No. 4 Survey No. 5 Sources: CFIB, Your

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How have your gross sales revenues changed since the start of the COVID-19 outbreak in Canada? (% response)

3

3

5

5

12

18

14

19

22

Don’t know/Unsure

Increased

No noticeable change

Declined up to 10%

Declined 11% to 25%

Declined 26% to 50%

Declined 51% to 75%

Declined 76% to 99%

Declined 100% (we are not making any sales)

Source: CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results n = 10,845.

Note: The percentage of responses may not always add to 100%, due to rounding.

Page 6: COVID-19: The State of Small Business (Week 5) · 7 $62,637 $129,566 $160,314 $214,915 $203,461 Survey No. 1 Survey No. 2 Survey No. 3 Survey No. 4 Survey No. 5 Sources: CFIB, Your

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How have your gross sales revenues changed since the start of the COVID-19 outbreak in Canada? (% response)

5

12

18

55

3 -

10

20

30

40

50

60

Survey No. 1 Survey. No 2 Survey. No 3 Survey. No 4 Survey. No 5

Declined up to 10% Declined 11% to 25% Declined 26% to 50%

Declined more than 50% Don’t know/Unsure

Sources: CFIB, Your Business and COVID-19 – Survey Number One, March 13 - March 21, 2020, n = 4,906.CFIB, Your Business and COVID-19 – Survey Number Two, March 20 - March 26, 2020, n = 10,059.CFIB, Your Business and COVID-19 – Survey Number Three, March 27 - April 2, 2020, n = 6,946.CFIB, Your Business and COVID-19 – Survey Number Four, April 3 - April 9, 2020, n = 12,889.CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results n = 10,845.

Page 7: COVID-19: The State of Small Business (Week 5) · 7 $62,637 $129,566 $160,314 $214,915 $203,461 Survey No. 1 Survey No. 2 Survey No. 3 Survey No. 4 Survey No. 5 Sources: CFIB, Your

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$62,637

$129,566

$160,314

$214,915 $203,461

Survey No. 1 Survey No. 2 Survey No. 3 Survey No. 4 Survey No. 5

Sources:CFIB, Your Business and COVID-19 – Survey Number One, March 13- March 21, 2020, n = 3,672.CFIB, Your Business and COVID-19 – Survey Number Two, March 20- March 26, 2020, n = 6,666.CFIB, Your Business and COVID-19 – Survey Number Three, March 27- April 2, 2020, n = 6,906.CFIB, Your Business and COVID-19 – Survey Number Four, April 3- April 9, 2020, n = 7,641. CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results, n = 6,636.

Are you in a position to tell us how much COVID-19 disruptions have cost your business to date (extra costs, lost sales, production slowed or halted, plans cancelled, etc.)?

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Are you in a position to tell us how much COVID-19 disruptions have cost your business to date (extra costs, lost sales, production slowed or halted, plans cancelled, etc.)?

By Province

By Industry

Source: CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results n = 6,636.

NB NS MB YK NL QC BC NAT SK ON AB NWT PEI

Respondents 252 256 254 4 109 1,209 687 6,636 230 2,904 678 10 43

Mean $98,739 $126,284 $144,863 $163,750 $165,698 $182,716 $194,271 $203,461 $212,049 $214,536 $263,024 $303,000 $696,099

Unclass./IVMs Retail F.I.R.E. Pers./Mis. Ser. Arts/Rec./Inf. Prof. Serv. Agriculture Soc. Serv. NAT Hospitality Nat. Res. Ent./Adm. Mgt Construction Manufacturing Wholesale Transportation

Respondents 229 1,554 127 781 262 404 164 561 6,636 703 51 160 540 613 340 147

Mean $116,421 $128,901 $133,303 $140,790 $155,755 $169,173 $170,650 $171,239 $203,461 $217,758 $228,431 $247,057 $284,458 $291,296 $320,380 $800,936

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If current restrictions continue until the end of May, how confident are you that your business will survive? (% response)

6

44

50

My business will not survive ifthis continues until the end of

May

I am not sure my business willsurvive if this continues until

the end of May

My business will definitelysurvive even if this continues

until the end of May

"Will not survive "

4 45 5 5 5 5

6 6 6

8

NS NB SK QC BC MB NL CA PE ON AB

1 3 3 3 34 4

6 6 6 67 7

8

10 10

Source: CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results, n = 10,535.

Page 10: COVID-19: The State of Small Business (Week 5) · 7 $62,637 $129,566 $160,314 $214,915 $203,461 Survey No. 1 Survey No. 2 Survey No. 3 Survey No. 4 Survey No. 5 Sources: CFIB, Your

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What are you most worried about with respect to COVID-19?(% response)

77

71

65

57

55

55

44

36

30

7

1

0

Business cash flow (getting paid, meeting payroll, paying suppliers/rent/mortgage/other bills)

Economic repercussions (on provincial, national and/or global economy)

Debt (long-term financial consequences of debt and depleted savings)

Health impacts (on myself, my staff or others)

Staffing (layoffs, retention, refusal to work)

Access to enough government support for my business/workers

Access to any/enough income as a self-employed worker

Having to close my business permanently

Business logistics (getting and shipping products, managing inventories)

Other (Specify)

No concerns at this moment

Don’t know/Unsure

Source: CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results, n = 10,534.

Note: Respondents are allowed to select multiple answers, percentages will not add to 100%.

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Which of the following statements best describes your current business or business owner situation with respect to the three programs described above* (CEWS, CEBA and CERB)? (% response)

8

9

30

38

10

5

I do not need assistance from any of thethree programs

I need assistance, but do not qualify forany of the three programs

I need assistance, qualify for at least oneof the three programs, and the amount

available seems sufficient

I need assistance, qualify for at least oneof the three programs, but the amount

available seems insufficient

I need assistance, but I don’t know if I qualify for any of the three programs

Other (Specify)

Source: CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results n = 10,317.* Note: see appendix for full background given to respondents before they answered the question.

6 7 8 8 8 9 9 10 10 10 10

44

3733 33

36 36 38 3739

34 35

PE QC MB SK NB NS CA BC ON NL AB

6 6 7 7 7 8 8 9 9 10 11 12 12 13 14 14

31

3834 33 32

40

48

54

38 38 38

46

24

40

28 29

Qualify, but support is insufficient

Need assistance, but do not qualify

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How much did your business pay in payroll in 2019 (according to your T4 submission)? (% response)

14

66

14

6

2

More than $0 but less than$50,000

Between $50,000 and $1million

More than $1 million

Not applicable – No payroll in 2019

Don’t know/Unsure

8 10 12 13 14 14 14 15 15 15 16

9

1714 14 14 15 13 12 10

1210

PE AB MB QC CA BC ON NL NB SK NS

6 6 7 8 8 9 11 13 13 14 14 15 18 19 19 20

2325

27 26 25

19

1213 11

1412

5

89

4

10

More than $1 million Less than $50,000

Source: CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results n = 10,367.

Note: The percentage of responses may not always add to 100%, due to rounding.

.

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Canada Emergency Business Account (CEBA)

Source: CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results, n = 10,367, n = 10,283, n = 10,244.

36%66%

Businesses eligible for CEBA (payroll between $50,000

and $1 million in 2019)

Businesses that tried

to apply for CEBA

24%

Businesses that report

using CEBA

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Canada Emergency Business Account (CEBA): Top sectors (% response)

Source: CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results, n = 10,367, n = 10,283, n = 10,244.

Businesses eligible for CEBA

(payroll between $50,000

and $1 million in 2019)

Businesses that tried

to apply for CEBA

Businesses that report

using CEBA

36

39

44

44

45

48

National

Pers./Misc. Services

Ent. & Admin. Mgmt.

Hospitality

Soc. Services

Arts, Rec. & Info.

24

22

26

26

30

35

National

Pers./Misc. Services

Ent. & Admin. Mgmt.

Hospitality

Arts, Rec. & Info.

Soc. Services

66

67

68

68

70

71

National

Soc. Services

Pers./Misc. Services

Construction

Hospitality

Fin. Ins. Etc.

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Have you tried to apply for the Canada Emergency Business Account (CEBA)? (% response)

Applied

29 30 32 32 3336 36 36 37

40 41

MB NL BC AB SK CA NB NS ON QC PE

22 2228 28 29 30 32 35 36 36 38 39

44 44 45 48

Source: CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results, n = 10,283.

Yes36

No64

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What is the main financial institution that your business currently works with? (% response)

1

1

2

2

2

4

7

9

9

9

17

19

20

Other Caisses populaires

HSBC

Other (Specify)

ATB Financial

BDC

National Bank

Desjardins

Bank of Montreal

CIBC

Credit Union

TD Canada Trust

Scotiabank

Royal Bank

Source: CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results, n = 5,409.

Note: The percentage of responses may not always add up to 100%, due to rounding.

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Since the COVID-19 emergency began, how would you rate your overall experience with

the main financial institution your business works with? (% response)

Source: CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results, n = 2,495.

27

23

24

29

31

32

28

33

34

40

39

45

40

39

43

49

24

27

25

20

22

20

20

15

12

8

8

5

6

7

7

2

3

2

4

1

1

2

2

1

Credit Union

TD Canada Trust

CIBC

Desjardins

Bank of Montreal

Scotiabank

Royal Bank

National Bank

A (Excellent) B (Good) C (Average) D (Poor) F (Unacceptable)

Average grade

across all banks:

B (Good)

Page 18: COVID-19: The State of Small Business (Week 5) · 7 $62,637 $129,566 $160,314 $214,915 $203,461 Survey No. 1 Survey No. 2 Survey No. 3 Survey No. 4 Survey No. 5 Sources: CFIB, Your

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What additional sources of money is your business using

to cope financially with COVID-19? (% response)

37

34

24

19

11

10

9

7

7

3

8

13

4

Personal savings (other than retirement)

Credit card

Canada Emergency Business Account (interest-free government loan of up to $40,000accessed through financial institutions)

Other loan from bank or public/private financial institution (excluding Canada EmergencyBusiness Account)

Government money, excluding loans (such as a provincial grant or the federal wage subsidy)

Other (Specify)

Retirement savings (RRSP, TFSA, other savings set aside for retirement)

Mortgage

Loan from friends/family

Other private money (such as angel investor, venture capital or another business owner)

None – Unable to access any additional funds

None – No additional funds needed

Don’t know/Unsure

Source: CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results, n = 10,244.

Note: Respondents are allowed to select multiple answers, percentages will not add to 100%.

Page 19: COVID-19: The State of Small Business (Week 5) · 7 $62,637 $129,566 $160,314 $214,915 $203,461 Survey No. 1 Survey No. 2 Survey No. 3 Survey No. 4 Survey No. 5 Sources: CFIB, Your

“It is important that my provincial government creates a hardship grant to help

hard hit businesses cover fixed costs (such as rent)”[% respondents who agree or disagree with statement]

19

Source: CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results, n = 10,048.

Note: The percentage of responses may not always add up to 100%, due to rounding.

50

55

56

56

57

59

59

60

60

62

64

37

34

31

27

33

30

30

28

29

28

25

4

3

6

8

4

4

4

3

4

5

7

1

1

1

2

2

1

0

1

1

1

1

6

5

5

5

3

5

4

5

4

4

3

3

2

2

2

1

2

2

1

AB

SK

MB

PE

NB

CA

BC

QC

ON

NS

NL

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

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“Governments are doing a good job at handling…

…the economic emergency associated with COVID-19

…the health emergency associated with COVID-19” [% respondents who agree with each statement]

Source: CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results, n = 10,094.

Note: Agree includes – strongly agree and somewhat agree.

47

5459 61 63 64 66

69 7073 75

71

77 79 81 8178

87 8891

8792

AB SK MB BC CA ON PE NB QC NS NL

Economic emergency Health emergency

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Reopening the economy[% respondents who agree or disagree with each statement]

40

42

52

33

34

25

9

5

3

1

1

6

11

11

7

5

8

7

I think that governments should be more creative about getting people back to worksafely

Businesses that can respect strict social distancing guidelines and provide reasonableprotection for employees should be allowed to reopen

I would rather be open at half capacity than not be open at all

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

Source: CFIB, Your Business and COVID-19 – Survey Number Five, April 2020, preliminary results, n = 10,094.

Note: The percentage of responses may not always add up to 100%, due to rounding

Page 22: COVID-19: The State of Small Business (Week 5) · 7 $62,637 $129,566 $160,314 $214,915 $203,461 Survey No. 1 Survey No. 2 Survey No. 3 Survey No. 4 Survey No. 5 Sources: CFIB, Your

Appendix

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Page 23: COVID-19: The State of Small Business (Week 5) · 7 $62,637 $129,566 $160,314 $214,915 $203,461 Survey No. 1 Survey No. 2 Survey No. 3 Survey No. 4 Survey No. 5 Sources: CFIB, Your

Backgrounder provided

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From slide 11:

• Canada Emergency Wage Subsidy (CEWS): A direct subsidy to employers of a maximum of 75% of the wages of each employee, up to $847 per week per employee. To qualify, employers must show a significant revenue drop (-15% in March 2020 compared to January/February 2020 or March 2019, -30% in April or May 2020 compared to January/February 2020 or April or May 2019).

• The Canada Emergency Business Account (CEBA): Interest-free loans to cover business operating expenses of up to $40,000, with 25% of the loan that may be forgivable. To qualify, businesses must show they paid between $50,000 and $1 million in payroll in 2019.

• The Canada Emergency Response Benefit (CERB): A direct payment to employed and self employed Canadians who stopped working because of COVID-19 that provides $500 a week for up to 16 weeks. To qualify, Canadians must not have quit their job voluntarily, be at least 15 years old, and have earned at least $5,000 in the last 12 months or in 2019. They must also have received no income for 14 consecutive days to apply.