Over two trillion dollars in business assets have become vulnerable due to the mass exodus of small businesses in Canada

BY STEVEN KASZAB

The pandemic continues to consume our lives whether we know it or not. Lingering impacts upon your personal or business lives continue, remain and will affect you across all sectors.

7% of Canadian small and medium businesses have begun to develop exit strategies from their business within the next ten years. According to the Canadian Federation of Independent Business (CFIB), over two trillion dollars in business assets have become vulnerable due to the mass exodus of small businesses in Canada.

Most of these entrepreneurs mention retirement (75%) as their main reason to exit their business. 22% wish to leave due to the stresses of business, while another 22% wish to take a step back from running and investing in their firms. 9% wish to transition their business to a different industry or business model.

Banking institutions and lawyer firms are busy assisting millions of business owners across North America and the Caribbean to plan business successions, or businesses ultimate closure or sale. Finding an appropriate successor or buyer is difficult indeed.  Over 43% of entrepreneurs find it challenging to measure the value of their business while 39% feel their enterprises are far too dependent upon their owners for daily operations.

The government of Canada passed Bill C-208 in 2021, allowing SME to sell their business shares to family, taking the exemption of lifetime capital gains of the sale.

Many enterprising businesspeople would prefer to start up an enterprise instead of buying into an existing one. They can personalize their business and not walk into existing problems. CFIB has found that 49% of those who wish to leave their present establishment, wish to start a new business entirely.

50% of business owners make less revenue today than they did in 2021, with 64% still struggling with post pandemic debt, and 77% continue to be pandemic anxious.

Business has become a pressure cooker with fears the economy can stumble into a recession at any time.