Pandemic, economic crisis, wars, social issues and global warming: the uncertainties about the future are simultaneous, collective and cross-border. These geopolitical insecurities inevitably result in meteoric inflation that affects all spheres of our society.
Posted at 4:00 p.m.
It is obvious, small and medium-sized enterprises (SMEs) in Quebec have experienced the pandemic with difficulty, sometimes even going so far as to close their doors, and the coming months are giving rise to just as much concern. According to the Canadian Federation of Independent Business (CFIB), 1 in 7 businesses are at risk of closing due to the pandemic, which would represent 18,000 SMEs in Quebec. Ten. Eight. Thousand.
Moreover, this statistic does not include any data on the influence of the current economic crisis. When we see that consumption habits are once again turning towards multinationals, there are still fears for the future of our local economic health.
At the start of the pandemic, SMEs welcomed the mobilization to promote local purchasing, in particular through campaigns such as that of the infamous Blue Basket. However, this desire to promote locavorism is slowly dying out at the end of the pandemic and the beginning of the economic crisis.
According to the NETendances survey, in 2021, 47% of online purchases by Quebecers would be made on Amazon, while only 19% would be made on Quebec sites (compared to 25% in 2020). Where are the government messages to encourage buying local? For several months, he has been silent on the subject and even invests in its opposite…
SMEs feel more than ever the end of the mobilization, so strong and sustained just a few months ago. The absence of encouragement to buy local, the tight portfolio of customers, the increase in the cost of goods and transport, salaries having to compensate for inflation are all shared and very worrying experiences. In response to inflation, many consumers turn to multinationals to buy at lower cost and maintain a semblance of quality of life.
The noose is tightening and placing small and medium-sized business owners in an unresolved puzzle. The impasse is real: SMEs must either reduce their profit margin by absorbing increases in the cost of goods, or increase their prices and risk losing customers whose financial elasticity is already stretched by inflation.
The crisis that SMEs are currently experiencing is also that of having to compete directly with giants like Amazon or Walmart for which manufacturing and transport costs are lower because of their less human scale of production. With the pandemic, shopping behaviors have changed to adapt to the new reality. Proof of this is the explosion of e-commerce. Online sales will certainly remain a big part of the game in the future; SMEs deserve an equal chance as “players”.
Inactive directories like the Blue Basket are first and foremost insufficient. Also according to the NETendances survey, only 14% of Quebecers would have used the Blue Basket in 2021. Direct measures to support local businesses and producers are necessary and vital. Concrete measures to address these issues must emerge between the government and business owners. The solutions can go through the reduction of taxes, the reduction of transaction costs for credit cards, the reduction of transport costs by post or even through committed awareness campaigns on buying local.
Now is the time to encourage buying local to revitalize our communities to ensure our sustainable development. The last two years have certainly been difficult, but they have also been synonymous with transformation and resilience for many. They were instigators of a necessary transition for our future and that of our planet. They invite us to continue on the path of collective well-being. Let’s not forget these learnings and give ourselves the means to make them last and grow over time to change the face of consumption and our society, for the better.
Promoting local industry is a way of living differently, on local soils. Encouraging Quebec SMEs is a way to weave together our communities while securing our sustainability and protecting the environment. The future is local, you just have to invest in it.
Co-signatories: Marie-Josée Richer and Alon Farber, PRANA Biovegan/Biovégétalien, Jean-Philippe Bergeron, OLA Bamboo inc., Philippe Choinière and Stacey Lecuyer, Oneka, Marie-Ève Lejour, Savonnerie des Diligences, Anthony Poitras, Pure, Marilyne Bouchard, Bkind, Julie M. Dumais, June swimwear inc., Kyle Smith, Mate libre, Camille Forcherio and Joao Crisostomo, Mimi & August, Pierrich Picard, Gutsy fermented drinks inc., Laurence Gaudreau, Pépin-SOJA & CO., Stéphanie Mandréa , In the bag