Only 28% of B.C. businesses getting COVID-19 aid expect a return to normal once help ends: poll

Many British Columbia businesses are worried about a “second wave” of negative impacts if government supports during the COVID-19 pandemic are lifted too early, a new poll suggests.

Based on a regular check-in with 1,401 businesses, 65 per cent of companies are using some form of government support amid the health crisis.

And only about 28 per cent of those businesses that are on government support expect to return to normal once the programs end.

Of the remainder, 32 per cent of firms expect to reduce employee hours, 27 per cent expect to lay off or terminate staff, and 24 per cent anticipate taking on debt.

According to the survey, which was conducted by the Mustel Group and included members of the Business Council of B.C., the Greater Vancouver Board of Trade and the BC Chamber of Commerce, one in 10 say they will have to close if when those supplements are gone.

“The viability of many businesses hinges on the government acting quickly in rolling out a recovery plan that restores consumer confidence, provides support measures necessary to help with wages, reduces costs and fees, while taking meaningful steps towards creating a competitive and resilient business environment that will stimulate our economic recovery,” Greater Vancouver Board of Trade CEO Bridgitte Anderson said.

Businesses are worried the provincial recovery plan will not help them succeed or survive. Only 16 per cent are confident, compared to 47 per cent that are not confident, in the province using the $1.5 billion it has set aside to help them.

The most common economic impact of the pandemic is a decrease in sales volume, with 75 per cent of businesses noting a drop.

More than four in 10 companies report reducing staff hours, laying off employees and closing temporarily.

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More than a third have increased their digital or e-commerce presence. And among business owners who travel, the majority say they do not expect to return to business travel until 2021.

Overall, the community is calling for cutting red tape, creating better investment conditions, adding direct cash flow support, and making regulations more efficient.

“Policymakers and politicians must stay sensitive to how vulnerable B.C. businesses are today,” BC Chamber of Commerce CEO Val Litwin said.

“Entrepreneurs are waking up to the reality that their new operating environment is more costly and fraught with risk. A bold economic recovery plan that helps small businesses compete is a non-negotiable for a prosperous B.C. – and when small businesses thrive, so do communities and people. Governments must keep focused on delivering their recovery plans swiftly.”