Oct. 8, 2009, Ottawa – CIBC says small is better for Canadian businesses coping with turbulent economic times.
CIBC says small is better for Canadian businesses coping with turbulent economic times.
A
report from the bank says small and medium-sized firms appear to have
survived the recession much better than their larger rivals, with
relatively few bankruptcies or staff layoffs.
As well, the bank says smallish firms are well-positioned to take advantage of the recovery.
The
bank says that's because smaller firms are geared more toward selling
their products and services to domestic consumers, who are in a
stronger financial position than their U.S. counterparts.
The
CIBC report notes that in the 12 months ending last March, which
included the worst of the recession, the number of small and
medium-sized firms in Canada actually rose.
Meanwhile,
bankruptcies in the 12 months ending in July declined by 6.1 per cent
over the same period the previous year. As well, employment in the
smallish firms was largely unchanged in the first six months of 2009,
as compared to a 10 per cent decline in employment among larger
Canadian companies.
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