By Chris Brown

some looking to exit

Poll finds second wave worries among owners of small- and medium-sized businesses

Oct 20, 2020 | 12:27 PM

Research by KPMG in Canada has found that almost one-third of small- and medium-sized business owners worry they won’t make it through a second wave of COVID-19 and more than half say their current focus is on survival.

At the same time, some businesses say they are well-positioned to come out on the other side and see an opportunity to grow their business either organically or in buying distressed assets.

John Cho, a partner and head of KPMG’s deal advisory services, says this is a pivotal moment for the concerned businesses.

“These companies are the backbone of the Canadian economy, and up to now, we have seen few insolvencies. But worries over a second wave leading to another shut down has one in four seriously looking to exit their businesses,” he says.

Key findings:

WHAT'S ON

Here is what's on this weekend in Medicine Hat and area: Dec. 13-15

21h ago

IN THE COMMUNITY

Medicine Hat's Mustard Seed adding new shelter spaces at Alberta government's request

Dec 12, 2024

HOLIDAYS

Medicine Hat Kiwanis hosting Christmas dinner, applications due Friday

Dec 12, 2024

• 31 per cent of small- and medium-sized business owners or decision makers worry that they don’t have the adequate liquidity or access to financing to make it through a second COVID-19 wave. A further 11 per cent said outright that they do not have adequate liquidity or access to financing for the foreseeable future.
• 54 per cent say their “immediate focus is on survival.”
• Nearly 40 per cent worry they won’t recover from the economic fallout of the pandemic.
• Almost one in four (23 per cent) regret not selling their business sooner, and a nearly equal number (24 per cent) are looking to sell due to the higher costs and increased challenges associated with managing and protecting their employees during the pandemic.
• 29 per cent view the pandemic as an opportunity to grow their business either organically or through acquisitions.
• 30 per cent say they are either much or somewhat better off than their competitors and nearly a quarter (23 per cent) say they are in a somewhat or much worse position.

The push to digital is growing and 78 per cent of entrepreneurs believe it is key to business survival. So far COVID-19 has driven 64 per cent into adopting digital and emerging technologies. But 73 per cent of owners who want to exit within the next five years say they don’t have the energy, will, desire or technology to lead their company into this pandemic-driven new reality.

Yannick Archambault, partner and national family office leader for KPMG Enterprise in Canada, says it’s critical that small- and medium-sized business owners in Canada assess their own desire and commitment to make the technology investments needed to compete going forward.

The poll was conducted among 500 small- and medium-sized Canadian companies between Sept. 17 and Sept. 24, when COVID-19 cases resurged in Canada.