The chilling effects of winter on small local businesses. Why is ‘everything’ so expensive?
For most of us, winter brings with it a certain amount of stress. Shorter days, longer commutes. Add to that unprecedented amounts of snow combined with freezing temperatures and it’s no wonder Canadians spend most of their winter indoors. That might sound comforting to you, but not so to the small business owner.
Across the board, consumer sentiment suggests that ‘everything’ is so expensive. In Canada, the climate is partly to blame. The challenges facing small business owners between November and April are great. Many struggle to keep up and ultimately sink, while others manage to keep their heads above water long enough to see spring.
Every year, small business owners – especially at the retail level – feel the pain of winter. They plan and hedge for what is effectively half a year of reduced revenue – putting pressure on an already thin profit margin. While fixed costs like rent stay the same, small business owners also face increased variable costs for things like heating – often tough to forecast from year to year but increasing annually, nonetheless.
This, along with increased costs caused by other uncontrollable factors like tariffs and taxes, force small businesses to increase their prices, driving up the cost of living for us all. It’s not their fault. It’s simply market economics. Many times I hear complaints about local pricing but we must all factor this into our understanding of market dynamics.
We must all keep in mind that Scarborough’s small businesses play a crucial role in the city’s economy, contributing significantly to employment and economic growth. Here are some key points regarding the number of small businesses and their economic impacts in Scarborough:
Focus on Food & Drink: Approximately 60% of all Scarborough businesses are in the food service industry.
Economic Drivers: Small businesses in Scarborough are concentrated in eating or drinking establishment, as well as take-out or retail food establishment, such as grocery, convenience, and specialty food stores.
The economic impact of small businesses in Scarborough is multifaceted, contributing to Toronto’s overall economic health and development. By fostering a supportive environment for small businesses, Scarborough aims to create jobs, enhance the quality of life for residents, and strengthen the local economy.
