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Canadian Entrepreneurs Have Many Concerns Beyond Inflation

More than half of respondents (55%) said they would face “material, substantial, or substantial pressure on their business and cash flow” if the prime lending rate were to increase by 1%, while a third (33%) said that a 2% increase from their current lending rate would put their company “at risk”, create “significant challenges”, or “derail growth or investment plans”.

Most (94%) agree that higher inflation will last longer than expected and are making it into their operating model, with 45% agreeing strongly, indicating that they are indeed modeling for higher inflation.

restructuring stigma

8 out of 10 respondents have been forced to reorganize or reorganize their operations due to the pandemic, and the same share says there is still financial hardship and a stigma to restructuring, a reluctance to talk about it .

Less than a third said their company culture is open enough to discuss their financial challenges with outside parties, such as lenders, accountants, or turnaround experts.

Most business owners said they believed it was harder to raise capital after a restructuring, but being on guard about financial issues could break down the business, van Eyck warned.

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