A quarter of Metro Vancouver businesses "don’t expect to survive" the next 12 months
One-in-four businesses in Metro Vancouver do not expect to survive more than 12
months under the current economic conditions.
This stark outlook on the future of business in the region comes after a recent survey conducted by the Greater Vancouver Board of Trade (GVBOT) in partnership with the Mustel Group.
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The survey results were released today and presented to the leaders of BC’s three main parties at a GVBOT event to discuss ballot box issues facing BC’s business community ahead of the election on October 24.
The GVBOT said its most recent figures have found that only 40% of businesses expect to return to regular operations in the wake of the pandemic. Businesses are also citing layoffs (17%), limited capacity (26%), and reduced employee hours (17%) as the most significant concerns facing the community.
In total, 150,000 jobs have been lost in Metro Vancouver since the start of the pandemic, the GVBOT said.
Now, “the majority of businesses would like to see the Government do more on a number of issues impacting their businesses,” said the GVBOT in a release. Results of the survey also include:
- 69% believe more action is needed to provide a vision for the future of Metro Vancouver’s economy;
- 63% believe that not enough is being done on the availability and affordability of housing;
- 62% of respondents believe the Government should do more to prioritize major infrastructure projects.
Reducing permitting processes (62%), training the workforce (53%) and growing BC’s tech ecosystem (50%) were also flagged as areas for improvement.
Making matters worse, the GVBOT said businesses “appear to be approaching an employee crisis.”
The survey found that since the onset of COVID-19, businesses have observed the following:
- Increased mental health concerns among employees (60%)
- Loneliness and disconnection (54%)
And while seven-in-10 businesses are aware of the current government’s economic recovery plan, two-thirds (65%) “are not confident” that it will help their overall economic recovery.
In light of these findings, the GVBOT said its members believe the most pressing measures the BC Government should prioritize are as follows:
- Creating better/more competitive conditions for investment in the province (43%)
- Reducing the administrative burden or making regulations more efficient (41%)
- Financial support such as payroll/wage supports, providing capital or reducing taxes and fees (39%)
- Supporting sectors such as tourism and travel that are positive economic multipliers for the region (38%)
- Reduced fees (33%), eliminating PST (32%), and cutting commercial property taxes (30%) were also highlighted as direct support measures that businesses deemed most important to their survival
“The stark reality that this survey lays bare is that many businesses in Greater Vancouver are hanging by a thread,” said GVBOT President and CEO Bridgitte Anderson.
Both through this survey and in our conversations with members, the message coming through loud and clear is that action needs to be taken to not only help them survive, but also to mitigate the long-term economic challenges posed by this virus.”
The impact “on our communities, our economy and our downtown core should we lose a quarter of businesses over the next 12 months is almost unthinkable,” she added. “Whoever wins the election on October 24 will need to act fast to stoke the fires of economic recovery and set BC on a course to help the private sector recover.”
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