Drop in growth outlook impacts small businesses in Niagara, Hamilton

Growth outlook for small businesses across the country has dropped significantly in the last month according to a new report by the Canadian Federation of Independent Business, and the impacts are being felt locally.

Rising cost of fuel remains the top concern, and shops in the Hamilton and Niagara region are feeling the effects in their bottom line.

The decline in optimism has forced some small businesses in Grimsby to scale back hiring plans for this summer, and has some students concerned about how they will manage expenses come the fall.

“I’ve probably gotten one interview back through the hundreds of jobs I applied for,” says one student.

It’s a result of the current economic climate in what should be the busiest time of the year for eating out and enjoying a summertime treat, according to Station 1 Coffeehouse in Grimsby. Staff are normally planning for a busy patio season but say they are not hiring extra workers.

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“Usually we’re booming — but it’s not been as busy. You can feel it. Especially with the rent shadow at the beginning and end of the month where people are trying to pinch their pennies,” says barista Mignone Peiris.

The Canadian Federation of Independent Business (CFIB) has been tracking hiring and lay-off intentions across the board. The trend? More businesses looking to lay off, than hire.

“Usually the next year’s expectations is what drives a business owner to hire, to expand the business, being more hours, more customers,” says Andreea Bourgeois, Director of Economics for CFIB.

While optimism is low, in Grimsby a second location of Garden Gate Home Decor opened two weeks ago. Owners say they wish they could hire more staff but can’t due to the cost of doing business.

“Being in such a niche market that we’re in we don’t have that guaranteed door swing and sale every day that we can count on to be able to have staff sitting there waiting for that customer,” says Meagan Anderson, co-owner of Garden Gate Home Decor, which opened its first store in Dundas.

“It was really difficult. I handed out my resume to a lot of different places and thankfully my aunt opened up this new location in Grimsby and took me in to work here,” says sales associate Brooklin Helget.

The number-one quality small businesses are looking for in young employees is a willingness to learn, according to the CFIB. The non-profit organization says technical skills can be taught but the ability to absorb and adapt are key.

“They are more likely to get a job by just stepping in the door and introducing themselves,” adds Bourgeois.

The Canadian Federation of Independent Business recognizes a lot of job search is done online.

Being creative and getting outside your comfort zone will get you seen, and hopefully get your next job.