How Covid-19 affects the lifestyle of Canadian Businesses

Introduction:

Canada being the most advanced country in North America is regarded as the most preferred regions on globe for any business owing to its business favorable policies, tax system and abundance of natural resources. According to a comparison stated by the World Bank, starting a business in Canada is easier after New Zealand and Australia (Doing Business, p. 58, 2013). However, irrespective of government’s interest and favorable business environments businesses are always vulnerable to certain risks which could temporarily harm its procedures, but total loss or complete failure of business is quite rare and only very few businesses fell victim of any such risks.   

Unfortunately, the entire businesses in Canada either primary, secondary or tertiary sectors all are quite badly affected by an extremely unpredictable disease Covid-19. Though, all businesses either small scale or large business setups adopts risk management techniques to counter with any likely risk or threat, however, threat like Covid-19 was neither expected nor any of the businesses had planned any strategy to deal with the impact of any such disease. Covid-19 has reversed the flow of businesses not only in Canada but throughout the globe. 

Owing to the virus’s impact millions of employees had been laid off or will be terminated in future, many prominent business brands had announced their permanent closure, manufacturing industries had either limited their operations or seized for an unlimited period, majority of individuals of tertiary sector are jobless, as such business sector having a major influence on Canada’s economy, the country’s economy is paused at the moment.    

The collapse of once smooth business activities in Canada appealed to me as its economy was developing seamlessly, individuals from across the globe were moving to Canada for a better future, and the country was in process of inhabiting its huge developing area through establishing more industries and businesses. In the following research it will be illustrated that how Covid-19, influenced the significant revenue generating business of Canada. 

Influence of Business Sector on Canadian Economy;

SME’s are the roots to the global economies and closely linked to daily livelihoods (Izumi & Shaw, 2015). many scholars have recognized and demonstrated the crucial role played by SMEs as a driving engine of growth, job creation, competitiveness in global markets and the general health and welfare of economies both nationally and internationally (Soininen, 2013). Small and medium scale businesses are among the major contributors of Canada’s economy. The business sector of Canada has been a significant support for the country’s development. it is not only the biggest sector providing employments to the locals and huge numbers of immigrants, it is also the among the leading industries generating revenues for the government in the form of taxes.  

Economies are always supported by their rate of employments. As stated by Wang (p. 405, 2011) that employment is always the social focus, and is also one of the most important factors in national economy, Canada had been privileged with a good percentage of employment provided by its small and medium scale businesses. 

The following Pie chart clearly defines the share of small and medium size businesses, in the entire Canadian employment.The greater number of employees means more individuals would be spending money for buying other products of their needs and would be utilizing services like transport, education, medical, recreational. Thus, they would be creating more avenues for revenue generation for other businesses or services as well. Moreover, the same employees either local or immigrants would also be paying for the basic utilities like electricity, gas, etc., as such they are also a direct source of revenue for the government. Hence, it can rightly be stated that Canada’s private business sector is one of the pillars of its well-established economy, and any shock on it will impact the entire economy of Canada.