SMEs Regaining Confidence


Canadian small- and medium-sized enterprises (SMEs) are much more confident than they were at the beginning of the pandemic, says a survey by Modus Research. In April 2020, 44 per cent of SMEs thought they would be out of business in less than six months and only 20 per cent of SMEs thought they could last more than two years. When SME executives were asked again in the fall, just one in six thought they would be out of business in under six months (about one-third of the number from the spring). The number that said they could last more than two years more than doubled and reached a majority by the end of 2020. Large numbers of SMEs are also upbeat about a full recovery. Canadian businesses were asked whether or not they expect their organization to fully recover to pre-COVID conditions. Although the results show that larger organizations are more optimistic than SMEs, fully seven in 10 SMEs expect a full recovery. Importantly, among those businesses that have yet to recover, SMEs believe they can recover more quickly than larger organizations with 63 per cent of them expecting to do so within a year, compared to 53 per cent of larger organizations.