Based on current revenues, cash reserves and available credit, only 54% of businesses can remain viable for more than 6 months with the current public health restrictions in place
TORONTO, May 6, 2020
As various levels of government across Canada begin to gradually ease restrictions, many businesses have a short leash.
1 in 5 companies cannot survive past 3 months, while another 25% say they can’t make it past six months of continued restrictions
The latest survey from the Modus Business Monitor of over 950 Canadian managers and executives (April 20 to 30) reveals many to be in dire circumstances.
- Just one-third of Canadian companies can survive more than a year under current restrictions
- Almost half (46%) have either closed shop already or cannot make it past six months
It is important to note that this question was asked after a series of in-depth questions about all the federal government’s assistance programs. In other words, government assistance is baked into these projections.
Most businesses expect all the major public health restrictions to be lifted within 6 months
While many businesses are unable to survive beyond six months, over half expect all the major public health restrictions to be lifted by then.
- That said, a sizable number of businesses think these restrictions will go beyond six months or even a year.
About the Modus Business Monitor
The Modus Business Monitor is Canada’s only B2B omnibus service. For reliable and accurate results without the cost of a custom business survey, the Monitor offers our clients the flexibility they need. Results from the Monitor are based on a scientific sample of Canadian business leaders rather than the common and unrepresentative business surveys circulating today that rely on members of lobby groups or recruiting from the Twitterati.
For more information on this release or the Modus Business Monitor please contact:
President, Modus Research
Phone: 1-800-254-6944 x224
Email: cgraves at modusresearch dot com
About Modus Research
Established in 2012, Modus Research is a full-service research agency that provides clients with actionable feedback from Canadian enterprises based on scientific samples. We offer our clients exclusive access to the Modus Business Panel – the gold standard of B2B research in Canada.