B.C. BUSINESSES are feeling the pain of COVID-19.
According to survey results published by the BC Chamber of Commerce on March 19, 90 per cent of businesses are currently being impacted by the virus, with 83 per cent of those impacted seeing a drop in revenue, business or deal flow.
The survey, which garnered almost 8,000 responses from across the province, found that 91 per cent of respondents anticipate a further drop in revenue in the near term, while 73 per cent expect revenues to fall by 50 per cent or more (and nearly a quarter saying their revenues will drop by 100 per cent).
Half of the respondents said they will be temporarily shutting down their offices, and 64 per cent expect to reduce their staff by more than half (and a quarter saying they will reduce staff by 100 per cent).
While the responses are concerning across the board, the tourism industry fears it will be hit especially hard, with some operators saying they've already seen cancellation of 90 per cent of their bookings.
"We are worried about bankruptcy if the summer does not go as planned—we really rely on overseas travellers," one respondent said.
Self-employed and/or contract workers are also particularly concerned, the survey found, due to their ineligibility for Employment Insurance.
"I am the only full-time employee, and I may need to close my business, potentially go bankrupt and lose $100,000 investment," a respondent said.
"I've paid into EI my entire life, except for the last year since starting my business. What services are available to me during this incredibly challenging time?"
Public health must be the primary concern during the early days of the pandemic, said Val Litwin, CEO of the BC Chamber of Commerce, in a release.
"We commend the federal and provincial governments for prioritizing the health and safety of its citizens above all else," Litwin said.
"We have also been reassured that government is strategically and thoughtfully looking at ways to mitigate impacts to businesses of all sizes and are working tirelessly to soften the economic impacts to British Columbians. Businesses in B.C. are saying that a combination of tax cuts, flexibility around tax remittances and enhanced credit access will help them weather this unprecedented storm in the short term."
The BC Chamber, along with Small Business BC, the BC Economic Development Association and Community Futures BC, has already made a number of recommendations to government based on the results, including that government: provide flexibility for tax remittance; allow for delayed property tax payment; encourage financial institutions to provide zero-interest loans, lines of credit and deferred payment terms; provide enhanced EI access and wage-replacement options; and provide funding for business to work remotely.
Check back with Pique for more as this story continues to develop.
