Government Support Important To Business Survival

The top three measures taken by Canadian businesses to help them persevere through the pandemic are participation in government initiatives (such as CEBA, wage subsidies, rent, and tax deferrals), cost cutting measures, and investing in information and communications technology, says a report by Modus Research. It shows that relatively few businesses responded by building/expanding online sales or moving into new lines of business. Approximately half of businesses who participated in government initiatives, cut costs, or invested in technology regarded those measures as very important to their survival. Likewise, fully 50 per cent of those building or expanding online sales regarded it as very important to survival (although fewer than a quarter of businesses adopted that measure). Firms that are struggling to survive are significantly more likely to participate in government support and cost cutting than more stable firms. These relatively precarious firms also rate importance of cost cutting and government support much higher than secure companies. Interestingly, they are much more critical of government support during the pandemic, especially provincial and local governments.