The latest Canadian Federation of Independent Business barometer indicates that Manitoba small businesses report increased optimism heading into the summer — but not everything is sunny in the local business forecast.
Brianna Solberg, CFIB’s director of provincial affairs, notes that Manitoba’s small business long-term confidence is slightly above the national average.
“Perhaps unsurprisingly, the most significant increase in confidence was reported by businesses in the hospitality sector (a 7.9-point increase in short-term optimism),” she said.
“This would indicate that restaurants, hotels and other tourism operators are optimistic the warmer weather could mean increased consumer demand.”
However, more than half of small to mid-size businesses continue to be impacted by a lack of consumer demand.
At the same time, increased wage costs are creating challenges for three-quarters of Manitoba’s small businesses, CFIB reports. High insurance costs are another cost constraint for many Manitoba businesses.
“Given the high cost of living, business owners are stretching their bottom lines to increase wages and benefits for their employees as much as possible in order to recruit and retain staff,” Solberg said.
Robert Price-Lewis, president of the Stonewall and District Chamber of Commerce, shared his local observations on the small business front.
“With regards to small businesses experiencing optimism and consumer demand bouncing back for the local hospitality sector, I think owners and managers are doing the best they can to keep it business-as-usual. I would suggest that demand for many services never waned. It is the ability for a local business to sustain itself with the volume of such a demand. That comes from the community,” said Price-Lewis, who is also a small business owner in Stonewall, running ROKA: Massage & Wellness with his wife Kaylin.
“However, increases in taxes and mortgage interest rates, as well as ever-increasing living expenses, influence the consumer and this cannot be overlooked when projecting profit and growth for both the small business itself and the business community as a whole.”
The summer months will be a tell-tale time, he added.
“Ironically, many local businesses thrived at a certain point towards the end of the pandemic when restrictions lessened but travel remained limited, as people looked more locally for activities,” he said.
“But as the world opens up again, perhaps these same people will begin to look further afield. Conversely, increased costs for travel and less expendable income may inadvertently retain the rates of visitors to Stonewall and surrounding areas.”
Looking ahead, Price-Lewis remains optimistic about the future of Stonewall’s small business community.
“I believe Stonewall is a prime venue for tourism and has much untapped potential that would bring commerce and growth to the town,” he said.
“To accomplish this, activities related to tourism must continue to be developed, and the community must continue to support and invest in their town; recognizing the value of sourcing locally for the good of the local economy.”
Similarly, Jimm Simon shared his viewpoints as a director on the Chamber executive. Simon also serves as the executive director of Community Living Interlake, which oversees the social enterprise Something Beautiful Gifts and Café.
“Our customer base in both the café and restaurant (Something Beautiful) continue to improve and grow,” he said. “We are very optimistic about the future.”
At the same time, Simon also echoed a couple concerns.
“We continue to face a labour shortage for both experienced and entry-level staff. Secondly, although our sales continue to grow, they have not reached a level that compensates for the increased cost of labour due to increased minimum wage,” he said.
“Our insurance costs and the high cost of food and wholesale items are also having a big impact on our bottom line. So I would say we are optimistic but still struggling to make a decent profit from our operations.”
Price-Lewis noted that people deserve to be paid a wage, which allows them to live comfortably.
“However, the increased minimum wages drive up the cost of products, which negatively impacts the small business owner. Workers are pricing themselves out of jobs and small businesses collapse,” he said.
“But it is not their fault. They need to be compensated appropriately to afford to live. Where should the line be drawn?”
For more information on the Stonewall and District Chamber of Commerce, and for local businesses interested in becoming a member, visit the organization’s social media pages or email info@stonewallchamber.com.
