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A curated resource of recent research on trends shaping Canada's labour market.

Survival and growth of women-owned and immigrant-owned businesses during the COVID-19 pandemic

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Key Takeaway
Despite general stability in Canadian business survival rates, women- and immigrant-owned businesses face distinct challenges due to the impacts of the COVID-19 pandemic.

This Statistics Canada study investigated the impact of the COVID-19 pandemic on business survival and growth, focusing on differences across sectors and ownership groups. In particular, the research examined outcomes for women-owned businesses (WOBs) and immigrant-owned businesses (IOBs).

Using data on business openings and closures linked with the Canada Emergency Wage Subsidy (CEWS), the analysis revealed disparities in survival rates between WOBS, IOBs and other businesses. Although the survival rate of businesses has remained steady overall compared to pre-pandemic levels, WOBs and IOBs, in particular, have experienced difficulties.

In this research, WOBs’ survival rates were comparable to those of men-owned businesses overall, but the businesses were less likely to survive in certain sectors, especially without CEWS support. For their part, IOBs were more prevalent in service sectors and had lower survival rates (particularly smaller businesses) than those not owned by immigrants, regardless of CEWS use.

The findings highlight the disproportionate impact of the pandemic on businesses. The discovered link between ownership characteristics and challenging experiences highlights the need for targeted support measures.

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