Read more: Canada’s SMBs are confident of growth despite recession fears
Nevertheless, many small firms are concerned about inflation, rising interest rates, supply chain challenges, and a labour shortage.
“As we see reinvigorated consumer demand, businesses are reporting positive sales and revenue numbers, and less cash flow concerns. While it’s encouraging to see more optimism, the road ahead will pose new challenges,” said Jason Charlebois, senior vice president, Small Business, Scotiabank.
A third of small businesses (34%) said they’re feeling the impact of inflation; among that group, 37% said they’re experiencing a significant impact, and 4% say it’s a critical impact. Meanwhile, rising borrowing costs are impacting 24% of small firms, with 42% in that group reporting a significant impact and 4% reporting a critical impact.
For one quarter (25%) of small businesses, labour shortages and/or problems obtaining materials are posing challenges.
