Survey finds Federal Programs not enugh to stop businesses from falling through the cracks

BY MICHAEL THOMAS

A recent survey conducted by Modus Research from (April 20^th to 30^th) found that over 950 Canadian managers and executives show a lukewarm response to federal programs. Enthusiasm is highest in Quebec (32% strong help) and lowest in Alberta (22% little or no help).

The survey found that although the majority of Canadian businesses recognize a contribution from the federal government, less than 1 in 5 see it getting them across the finish line.

Participation in various federal emergency programs is fairly low and at its highest level, only 40% of companies have applied or are planning to apply for CEBA with large numbers reporting ineligibility across these programs.

Although many of these programs are targeted to SMEs, only in the case of CEWS does the survey finds a (bare) majority of companies with 10 to 99 employees participating 51%. This is the only program that sees half or more participation for any business subgroup, and there are substantial levels of ineligibility reported for all programs.

Modus Research wishes the readers to know that it is important to take into consideration that this question was asked after a series of in-depth questions about all the federal government’s assistance programs, and government emergency assistance which were all added into these projections as well.

Modus Research was established in 2012, and is a full-service research agency that provides clients with actionable feedback from Canadian enterprises based on scientifically representative samples. It offers its clients exclusive access to the Modus Business Panel – the gold standard of B2B research in Canada.

According to Modus Research website if things stay the way they are

• One in five companies cannot survive past three months, while another 25% say they cannot make it past six months of continued restrictions
• 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

Toronto Caribbean Newspaper spoke with Mr. Charlie Graves (President of Modus Research) about these results, and what is coming up in his research field.

Graves told Toronto Caribbean Newspaper “The businesses that are most affected are the SME (small and medium-sized enterprises) and companies that are under 100 employees and they are the vast majority of companies in Canada.

If you look at the actual spread of companies in Canada, you’ve got 90% or more in that category  especially the ones that are in the 10 to 100 groups. They are the ones that are  kind of feeling the brunt of this, and they are the real contributors to the economy.”

The President of Modus Research also said, it is important to note that the government was smart in targeting the small companies by making some financial aid accessible to them as well, but it is clear that they are being hit the hardest by the COVID-19 situation.

Graves was asked if there was anything in these surveys that surprised him to which he replied, “Yes! It was learning that 35% of Canadian companies had laid people off, and a further 20% were saying that they are planning to lay people off. This was a previous survey done in March before any of the programs were announced or introduced.

In our April survey, the level of participation surprised us, which was lower than we thought at only 40% participation. It is interesting considering that it is pretty easy to apply and get approved for these programs.”

This coming June, Modus Research is conducting another survey, and this round will determine the lasting impacts of COVID, and what they think will happen over the long- term.

To the businesses that are wondering do I or do I not qualify for the support programs, Graves said, “You are not alone, it strikes me that a large number of businesses have not done their due diligence on these programs and they need to.”