EDMONTON — A recent Alberta Chambers of Commerce survey—undertaken in partnership with Community Futures Alberta and Economic Developers Alberta—shows both the COVID-19 pandemic and record low oil prices are threatening Alberta businesses.
The survey—which took place online between April 10 and April 26, 2020—revealed 90 per cent of businesses have been negatively impacted by COVID-19, with more than two thirds classifying the impact as "significantly" negative. At the same time, three quarters of businesses report low oil prices are negatively impacting their business, with nearly half reporting this impact to be significantly negative.
"If Alberta hadn't been dealing with the impacts of low oil prices and a recession for the past four years, the economic impacts of the COVID-19 pandemic would likely be similar to what businesses are experiencing in other regions," says ACC President and CEO Ken Kobly. "However, given this context, Alberta has been especially hard hit by the current economic conditions—and the data from Alberta business demonstrate that."
Small and new businesses are particularly vulnerable to current economic conditions. Fifty-seven per cent of businesses with five staff or fewer say they have used up their cash reserves and 62 per cent of businesses that have been in business for five years or less report the same. Nearly 50 per cent of respondents in both categories are not sure they can survive more than two months of business closures.
The ACC will be launching a two-week pulse survey on May 14 to measure the continued impacts of COVID-19 and low oil prices.
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For more information or comment, please contact:
Ken Kobly
President and CEO
Alberta Chambers of Commerce
(M) 780.975.1659
(P) 780.425.4180 Ext.5
