Many Canadian small businesses are facing new challenges because of rising costs and trade tensions and tariffs with the United States. <\/p>\n
Many small businesses in Canada are facing new challenges because of rising costs and trade tensions and tariffs<\/a> with the United States.<\/p>\n Now, the Competition Bureau<\/a> has launched a market study to make sure small to medium-sized companies are being treated fairly by Canada\u2019s big banks.<\/p>\n Small businesses, which are made up of one to 99 employees, are responsible for half the economic output of Canada, and make up 98 per cent of all businesses in Canada, according to the Competition Bureau.<\/p>\n \u201cThe current trade environment obviously puts us in a situation where competition here at home is more important than ever,\u201d said Brad Callaghan, associate deputy commissioner at the Competition Bureau.<\/p>\n The bureau is now raising concerns that new or smaller lenders face barriers to entry, because borrowing costs are higher and the sector is dominated by big banks. <\/p>\n \u201cThere are some signs they are facing some persistent challenges in terms over competitive financing terms,\u201d said Callaghan.<\/p>\n \u201cThe cost of getting a loan has always been harder for smaller companies as they are seen as bigger risks,\u201d said Corinne Pohlmann with the Canadian Federation of Independent Business (CFIB).<\/p>\n CFIB said small companies face added scrutiny when trying to get loans, and as bank branches close there are fewer chances for face-to-face interactions. <\/p>\n Current trade tensions with the U.S. and a slowing economy are also leaving many concerned about their future.<\/p>\n \u201cTheir optimism is definitely down,\u201d said Pohlmann. \u201cPeople are a little worried and those that are impacted by tariffs are definitely having a tough time.\u201d<\/p>\n \u201cIt\u2019s managing things week to week and month to month,\u201d added CEO and founder of Merchant Growth, David Gens. \u201cIt\u2019s a game of survival for many of these small businesses.\u201d <\/p>\n