- The document discusses issues facing small businesses in Canada during the COVID-19 pandemic such as declining confidence, high failure rates, and the impact on GDP. - It outlines government support programs for wages and commercial rent but notes many small businesses did not qualify or the requirements were too stringent. - Going forward, it suggests governments need to focus on supporting economic growth, helping businesses survive, improving infrastructure, and retraining programs to address job losses. Technology can help businesses with analytics, e-commerce, and automation.

1. P A U L Y O U N G C P A C G A
N O V E M B E R 1 1 , 2 0 2 0
SMALL
BUSINESS –
WHAT’S NEXT

2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting, Public Finance
and Advanced Management Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
• Small Business Confidence / Canada
• Small Business / Survival
• Small Business and GDP
• COVID Programs (Wage Subsidies and Rent Subsidies)
• Automation and Small Businesses
• North American Outlook
• Areas of focus

4. Small Business Confidence / Canada
Source - https://www.cfib-fcei.ca/en/research/economic-indicators/business-barometer-october-2020

5. Small Business Survival
Source - https://www.cfib-fcei.ca/en/media/news-releases/canada-could-
lose-additional-158000-small-businesses-covid-19

6. Small Business and GDP
Source - http://canadianentrepreneurtraining.com/7-statistics-about-
canadian-small-businesses/

7. COVID19 Programs
• Commercial Rent Subsidy –” https://www.bdo.ca/en-ca/insights/tax/tax-alerts/canada-emergency-commercial-rent-assistance ” –
• pay up to $50,000 per month in gross rent per location, as defined by a valid and enforceable lease agreement;
• generate no more than $20 million in gross annual revenues, calculated on a consolidated basis; and
• have experienced at least a 70% decline in pre-COVID-19 revenues.
• Source - https://www.bdo.ca/en-ca/insights/tax/tax-alerts/canada-emergency-commercial-rent-assistance/
• CFIB-” The Canadian Federation of Independent Business (CFIB) is disappointed that the federal government has not
provided any reassurance that the CECRA extension will provide relief to tenants who have not had access to the
program. Many have been shut out either because their landlord is not participating or because the 70 per cent
revenue loss requirement is too high. While today’s announcement is good news for those who can access the
program, it is a slap in the face for those who have been shut out of rent relief for five months running.” -
https://www.cfib-fcei.ca/en/media/news-releases/cfib-urges-finance-ministers-fix-rent-relief
• Wage Subsidy” Eligibility for, and the amount that can be claimed under, the 75% CEWS are dependent on a number of factors.
These are discussed below under general categories. This subsidy is a temporary measure. The program will be in place for an in
initial 12-week period, from March 15 to June 6, and then for a second twelve-week period ending August 29, 2020.” -
https://www.bdo.ca/en-ca/insights/tax/tax-alerts/covid-19-wage-subsidy-programs/
• Many small businesses do not meet the thresholds
• Initially revenue change / target, but the program has been revised - https://www.cfib-fcei.ca/en/media/news-
releases/cfib-statement-new-canada-emergency-wage-subsidy-details
• Operational expenses were excluded
• Inventory write-downs
• Equipment and other leases
• Other fixed related costs

8. Pain and Suffering by Small Businesses
Two small business owners Small business and Loans Bankruptcies
• Rise of bankruptcies - https://www.retaildive.com/news/the-running-list-of-2020-retail-bankruptcies/571159/
• Restructuring of businesses - https://www.bnnbloomberg.ca/fti-s-restructuring-business-balloons-amid-surge-in-
bankruptcies-1.1473314
• 2020 Pandemic could lead to similar recovery of the 1980-1982 recession -
https://www.pewresearch.org/2010/12/14/reagans-recession/
• Cash flow will be a big issue for consumers and businesses - https://liquidcapitalcorp.com/blog/cash-flow-2/3-
biggest-financial-challenges-facing-small-business-owners/ or job quality issues -
https://www.slideshare.net/paulyoungcga/job-quality-canada-235057299

9. Automation / Small Businesses
1. Chatbots
2. Deep Analytic tools
3. Artificial Intelligence
4. Feature rich customer CRM apps
5. Automation
6. Working from home
7. Influencer marketing
Source - https://industrytoday.com/7-technology-trends-for-small-businesses/

10. North American Outlook
Source - BMO

11. Small Business Competitiveness
• Carbon tax and Small Business – https://www.cfib-fcei.ca/en/media/federal-carbon-tax-costs-
farmers-almost-14000-1st-year-82-negatively-impacted
• Startups - https://www2.slideshare.net/paulyoungcga/how-to-best-support-business-startups
• Tax fairness - https://www.cpacanada.ca/en/the-cpa-profession/about-cpa-canada/key-
activities/public-policy-government-relations/policy-advocacy/cpa-canada-tax-review-initiative
• Regulations - https://www2.slideshare.net/paulyoungcga/natural-resources-canada-how-best-to-
get-goods-to-market or https://www2.slideshare.net/paulyoungcga/manufacturing-sector-
canada-and-usa-august-2020-and-september-2020
• Goods to Market - https://www2.slideshare.net/paulyoungcga/getting-goods-to-market-what-
needs-to-happen-by-all-levels-of-government
• Barriers - https://leaderpost.com/entrepreneur/small-business/ontario-gets-failing-grade-on-
small-business-competitiveness-from-new-chamber-of-commerce-index/wcm/6e534186-912b-
4760-a89e-cb609482da92

12. Areas of focus
• Nearly 600K jobs may never come back. The new jobs will require new skills –
https://www.slideshare.net/paulyoungcga/automation-and-human-capital-management-human-resources
• All levels of government need to focus on the goods producing sector as part of supporting near-term and
long-term economic growth - https://www.slideshare.net/paulyoungcga/tranformation-of-supply-chains
• Small businesses will need more support in terms of operation grants and debt forgiveness -
https://www.newswire.ca/news-releases/one-third-of-canadian-small-businesses-aren-t-feeling-community-
support-during-covid-yet-77-are-optimistic-about-the-future-visa-survey-835717888.html
• More focus on innovation centers at all colleges and university as way to support start up companies and
existing small to medium size businesses - https://www.slideshare.net/paulyoungcga/fastest-growing-
companies-canada-september-2017 or https://www.slideshare.net/paulyoungcga/2019-election-innovation-
and-rd-canada-2014-to-2017
• Focusing on tax fairness and social policy reform - https://www.slideshare.net/paulyoungcga/designing-social-
programs-and-tax-fairness-policies
• Reforming FIPA, Trade Agreements, and WTO - https://www2.slideshare.net/paulyoungcga/the-importance-
of-fipa-with-trade-and-fdi
• GDP – August – 2020 - https://www2.slideshare.net/paulyoungcga/how-to-reshore-supply-chains and
https://www2.slideshare.net/paulyoungcga/gdp-canada-august-2020

13. How can technology help
• Analytics can help drive better outcome for small-to-medium size
businesses - https://techwireasia.com/2020/07/how-ibm-is-boosting-ai-
automation-for-smes-across-thailand/
• RPA and SME - https://research.aimultiple.com/robotic-process-
automation-rpa-analytics/
• Supporting eCommerce solutions -
https://www.slideshare.net/paulyoungcga/ecommerce-whats-next

14. What’s next?
• All levels of government need to work with the private sector to support policies that will expand
economic growth - https://www.slideshare.net/paulyoungcga/gdp-canada-may-2020
• The recovery will be slow due to issues with businesses and their survival. Many companies,
especially in the retail, restaurant, and accommodation sectors may close up shops
• Canada needs to focus on getting goods to market -
https://www.slideshare.net/paulyoungcga/how-best-to-get-goods-to-market
• All levels of government will need to overhaul how they operate -
https://www.slideshare.net/paulyoungcga/public-sector-how-to-reform-all-levels-of-government
• Investments in infrastructure like ports or roads or railway lines or bridges can help with the
recovery - https://www.slideshare.net/paulyoungcga/canada-infrastructure-analysis-of-policy
• More balance between the economy and the environment -
https://www.slideshare.net/paulyoungcga/climate-change-and-the-environment-how-do-we-
resolve
• More alignment of EI programs with proper training as part of the post-covid19 exit strategy -
https://www.slideshare.net/paulyoungcga/policy-review-unemployment-insurance-canada

15. Other Sources
• If you like to learn
more about trade
and/or other
subjects as part of
your professional
learning and
development then
feel free to review
my material on
https://www.udem
y.com/ (search Paul
Young CPA CGA