Most Simcoe County businesses only have one to three months before they’ll be facing permanent closure, according to a new survey undertaken by the County of Simcoe.
The county’s Business Impact Survey was conducted between March 19 to April 9. More than 800 responses were returned from business owners, and there was participation by businesses from every municipality in the county, including Midland and Penetanguishene.
The county’s economic development committee discussed the results during their virtual meeting on Thursday afternoon.
“These are very sobering numbers,” said Innisfil Mayor Lynn Dollin.
On average, businesses indicated they are losing 70 per cent of their regular revenues that are normal for this time of year.
Sixty-three per cent of respondents anticipate they have one to three months before they need to permanently close; a point Midland Mayor Stewart Strathearn pointed to during his comments.
“I find it a little disturbing,” he said. “It says a lot about just how precarious some of these businesses really are. When we started our business, the number was, something like 85 per cent of businesses fail in the first year. If you lasted five years, you were probably OK.
“This is quite a disturbing number,” he said.
Ramara Township Mayor Basil Clarke talked about his wife’s 10-year-old business, and how he’s seen the local business model change over time, largely due to government policy changes.
“There has been a decline in profit over the last three (years),” he said. “It’s (due to) different policies. Minimum wage was a huge one. Tax adjustments. She’s seen it in her sales; just a slow decline. Inflation means you should be bringing in more dollars but no, it’s been a steady decline in how much money people have to spend.
“These businesses have been in life-support mode for a few years already,” he added.
According to the survey results, the respondents’ top concerns were the health of themselves, their family, their community, a lack of work/sales and loss of revenue and income, inability to pay bills and rent (both business and personal), a fear of business permanently closing or inability to recover financial losses, the inability to pay employees’ salaries and the overall economy in the long term following COVID-19.
Survey results indicated local businesses are looking for tax deferrals, rent and mortgage forgiveness/deferrals, access to grants/loans/other financial assistance, a listing of available resources and enforcement of physical distancing and best practices for safety.
The majority of local businesses in the agriculture sector indicated that lack of seasonal agricultural workers will not affect their 2020 production.
Only three per cent of respondents indicated they know they have insurance coverage for the effects of COVID-19. About 68 per cent of respondents indicated that they do not have insurance coverage for the effects of COVID-19, while 29 per cent indicated they are not sure whether they have coverage.
A second survey is planned to start the week of April 27 to provide businesses the opportunity to give updated feedback as the COVID-19 situation evolves. For more information, click here.
So, what is the County of Simcoe going to do about it?
Also considered during the committee meeting on Thursday was the Business Support and Economic Stimulus and Recovery Action Plan, which was developed out of the county survey results.
The plan outlines steps the county has taken and expects to take to help businesses through the pandemic.
The plan includes initiatives under six categories:
- Financial support and resources;
- Business outreach,
- Workforce alignment;
- Economic development network collaboration and research;
- Business promotion, and
- Potential broader economic stimulus.
According to the plan, many of these initiatives are underway or in the planning stages.
Many of the action items involve advocating at the provincial and federal levels to funnel funding toward the businesses most adversely affected.
“It’s quite broad, and I think very similar to what most municipalities are doing,” said Dollin. “I guess my questions would be about duplication of efforts. We need to make sure we’re co-ordinated.”
A County of Simcoe-led job portal is part of the plan, which will match job seekers with available opportunities.
The plan also outlines a push toward more ‘buy local’ campaigns, which are already underway.
To read the full Business Support and Economic Stimulus and Recovery Action Plan, click here.
