Waving the flag not enough to keep rural business afloat
Recently, Canada has seen a flurry of business closures, including iconic brands like Peavey Mart and the Hudson Bay Company. These closures are not just reserved for large businesses. Statistics Canada reports that in November 2024, the Canadian business closure rate rose to five per cent, a 0.1 of a point increase for the second consecutive month and 0.4 of a point above the historical average.
One commonality in all these closures is the rush by Canadian bargain hunters to find deals. News coverage in the wake of the closures showed hundreds of Canadians lined up outside stores and hurriedly clearing out shelves once they got inside while lamenting that the sales weren’t good enough.
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Chinese influence is alternating trade flows for wheat
China has a strategic long term plan when it comes to the trade war. The top 20 developing countries in the world are in the global south. This includes the Middle East, North Africa, Asia Pacific and sub-Sahara Africa. Last year, China announced zero tariffs on these developing countries in the global south which cemented its position as the trade leader for these countries. You guessed it, these regions are all major wheat importers and with the Chinese influence, they are not looking at the U.S. any longer for food security.
This not only demonstrated Canadians’ commitment to finding a bargain but also highlighted a buying trend that may be part of the problem in this country. We show up for a store opening and return for the store closing, but rarely do we see that support in between.
As a business owner, I can attest to the excitement of opening a new business. The community, the mayor, the local councillors, and your neighbouring businesses show up at the ribbon cutting and announce what a valuable part of the community you have become.
If you talk to most small business owners, however, you will quickly find that this wave of support dies quickly. Locals return to shopping at big box stores, and the struggle of running a small business ensues.
This trend is particularly glaring in rural communities, where if you drive through most small towns, you see windows covered in tattered paper blocking the view of interiors behind fading-for-rent signs. In 2020, the number of small businesses in rural areas decreased by more than four per cent.
In my own region, one of these empty storefronts is now covered in election signs for one of the local candidates, raising the obvious question — what is being done by provincial and federal governments, not just to support small businesses but to educate the public that if you don’t use it, you lose it?
According to Statistics Canada, in 2022, businesses with 1 to 99 employees comprised 98 per cent of all employer businesses in Canada and employed 10.7 million individuals, or 63 per cent of all employees. Further to this, small and medium-sized enterprises (SMEs) accounted for nearly half of the GDP generated by the private sector in 2020.
The loss of local businesses has a devastating effect on small communities. It drives consumers outside the region and eventually pushes residents out in search of better-served areas to live in.
The lack of ongoing support also makes it difficult for small business owners to focus on growing their enterprises. In 2023, 7.1 per cent of workers who were self-employed in their main job in Canada held multiple jobs, compared to 5.4 per cent of employees, according to Statistics Canada, suggesting that a significant portion of small business owners in Canada also hold another job.
In a recent wave of patriotism, Canadians are checking every package for a ‘made-in-Canada’ label. Few Canadians realize, however, that the biggest impact they can have on protecting Canadian business and sovereignty is to simply shop at their local small businesses. In doing so, you are supporting your neighbours, your rural communities, and those Canadian businesses who struggle to compete against big box stores, inflation, and tariffs.
It is up to Canadians to show up as often as possible. This act will encourage other small businesses and help rebuild rural communities.
Change doesn’t start with choosing an avocado grown in Mexico instead of the U.S.; it starts with choosing to support your community. Showing up, not just on opening day and closing day, but as often as possible, is the strongest act of resistance that Canadians can show in this trade war.
Source: Farmtario.com