Online Tutoring on Covid-19 affects on Canadian Businesses

Acknowledgment:

How businesses in Canada have changed their operations influenced by the new unexpected virus Covid-19, and how different business categories have responded to the new pandemic, is the main topic of the following research. This particular topic I selected for my research to illustrate that how well-established business setups in a well-developed economy, enjoying effective support of the government and adopting all techniques to mitigate any likely risk were not prepared for the pandemic crisis and are now prone to the impact of Covid-19.

Canada being one of the major producers and exporter of oil and vehicles, is among the most flourished economies across the globe. However, the same economy which was on ascending mode a few months back is now descending since last March 2020. The intrusion of unexpected and unwanted Covid-19 among the routine business processes has turned every business segment upside down, popular Canadian businesses that were once recording high sales are now entering heavy losses in the same ledger accounts.

The following research has been conducted to analyze the influence of the new pandemic over the businesses in Canada, and to evaluate the chances for the survival of SMEs which are an important component of the country’s economy, through the pandemic crisis.

As the current pandemic crisis caused by Covid-19, is new, quite rare and sudden, think tanks, science analysts and health concerns are still unable to conclude any authentic information or opinions. As such information and data has been accumulated to conduct this research, through the news media and government’s provided statistics, which is the only effective source of authentic information at the moment.

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Purpose of Research:

Our world had been a victim of different levels of virus attacks in the past like influenza pandemic of 1918, Asian Flu in 1957 and H3N2 virus in 1968, resulting in huge numbers of human mortality and disruption of economies. However, the past pandemic crisis lasted for specific period, after the crisis period the economies re-developed, business activities restarted and came to normal routine after some time depending on the level of loss created by the pandemic in those days.

The world since the last pandemic crisis i.e., H1N1 Pandemic in 2009, has changed a lot, technological developments has reached the heights and still growing, means of communication are faster, and internet has taken over as the most influencing factor over the people’s mindset and buying attitude. Covid-19 is the most advanced version of all the past pandemics, in this research it will be evaluated that in the when the world was less developed

In this paper it will be evaluated that though Covid-19 is the most advanced version of all the past pandemics, will the today’s advanced world with all its developed technical tools would be successful to mitigate the impact of the new virus. This research will also attempt to conclude the answer of another question that is quite relevant to the current situation, i.e., the advance technologies that is regarded as the pride of the current world, will it be able to aid the businesses to survive through the current pandemic crisis.

Introduction:

Canada being the most advanced country in North America is regarded as the most preferred regions on globe for any business owing to its business favorable policies, tax system and abundance of natural resources. According to a comparison stated by the World Bank, starting a business in Canada is easier after New Zealand and Australia (Doing Business, p. 58, 2013). However, irrespective of government’s interest and favorable business environments businesses are always vulnerable to certain risks which could temporarily harm its procedures, but total loss or complete failure of business is quite rare and only very few businesses fell victim of any such risks.

Unfortunately, the entire businesses in Canada either primary, secondary or tertiary sectors all are quite badly affected by an extremely unpredictable disease Covid-19. Though, all businesses either small scale or large business setups adopts risk management techniques to counter with any likely risk or threat, however, threat like Covid-19 was neither expected nor any of the businesses had planned any strategy to deal with the impact of any such disease. Covid-19 has reversed the flow of businesses not only in Canada but throughout the globe.

Owing to the virus’s impact millions of employees had been laid off or will be terminated in future, many prominent business brands had announced their permanent closure, manufacturing industries had either limited their operations or seized for an unlimited period, majority of individuals of tertiary sector are jobless, as such business sector having a major influence on Canada’s economy, the country’s economy is paused at the moment.

The collapse of once smooth business activities in Canada appealed to me as its economy was developing seamlessly, individuals from across the globe were moving to Canada for a better future, and the country was in process of inhabiting its huge developing area through establishing more industries and businesses. In the following research it will be illustrated that how Covid-19, influenced the significant revenue generating business of Canada.

Influence of Business Sector on Canadian Economy;

SME’s are the roots to the global economies and closely linked to daily livelihoods (Izumi & Shaw, 2015). many scholars have recognized and demonstrated the crucial role played by SMEs as a driving engine of growth, job creation, competitiveness in global markets and the general health and welfare of economies both nationally and internationally (Soininen, 2013). Small and medium scale businesses are among the major contributors of Canada’s economy. The business sector of Canada has been a significant support for the country’s development. it is not only the biggest sector providing employments to the locals and huge numbers of immigrants, it is also the among the leading industries generating revenues for the government in the form of taxes.

Economies are always supported by their rate of employments. As stated by Wang (p. 405, 2011) that employment is always the social focus, and is also one of the most important factors in national economy, Canada had been privileged with a good percentage of employment provided by its small and medium scale businesses.

The following Pie chart clearly defines the share of small and medium size businesses, in the entire Canadian employment.

Source: Statistics Canada, Labour Force Survey; and ISED calculations. Government of Canada.

https://www.ic.gc.ca/eic/site/061.nsf/eng/h_03090.html#point2-1

The greater number of employees means more individuals would be spending money for buying other products of their needs and would be utilizing services like transport, education, medical, recreational. Thus, they would be creating more avenues for revenue generation for other businesses or services as well. Moreover, the same employees either local or immigrants would also be paying for the basic utilities like electricity, gas, etc., as such they are also a direct source of revenue for the government. Hence, it can rightly be stated that Canada’s private business sector is one of the pillars of its well-established economy, and any shock on it will impact the entire economy of Canada.

Government’s Interest for SMEs;

Considering the significant contribution of SMEs, Canadian government has been offering varied opportunities for the establishment of new businesses and facilities to already established businesses. Canada’s framework of policies, such as product and labour market regulation, are generally supportive of small business dynamism (Better Policies Policies for Stronger and More Inclusive Growth in Canada, 2017), moreover the government has developed varied packages for financial, technical and advisory support of the SMEs in pursuit of their business’s expansion or stability. Canada Small Business Financing Program (CSBFP) portrays Canadian government’s interest for the support of small business set ups (IBP 2017), when a bank lends money to a small business and is not paid back, the government will guarantee payment for as much as 85 percent of the loan (Boone et al., 2020). Hence, Canadian government is adopting all measures for the support and protection of its SME sector.