(Montreal) A high proportion of Quebec SMEs say they still have to raise their prices to fight inflation, reveals a new study by the Canadian Federation of Independent Business (CFIB).
The survey published on Monday compares the results collected last January with those obtained during the same period in 2022.
She reports that nearly two-thirds of executives surveyed last month say they are being significantly impacted by inflation, up four points from a year earlier.
To face the inflationary context, 73% of them say they have to increase their prices, a proportion similar to 2022.
However, the survey shows that Quebec SMEs are now more numerous than last year to resort to other measures to deal with inflation.
For example, owners say they have to work more hours to reduce labor costs (59% in 2023, compared to 52% in 2022), or even temporarily reduce the profit margin in order to remain competitive (43 % in 2023, 38% in 2022).
These measures would be adopted more by companies with fewer than five employees, specifies the CFIB study. These SMEs are also less inclined to raise their prices.
Also, according to the study, about a third of managers mention having to reduce their investments and growth forecasts, while this proportion was 29% in 2022.
“Our data is clear: the situation is worse than last year. It is true that the peak of inflation seems behind us, however the current levels are much higher than what we have known”, declared in a press release the vice-president for Quebec at the CFIB, François Vincent, who worried that SMEs are weakening due to rising costs.
The CFIB also calls on Quebec to support SMEs by limiting the increase in government costs and reducing taxation. According to the survey, increases in certain government costs have an impact ranging from strong (44%) to moderate (34%) for small businesses.