Summary
This report presents the Xero Small Business Insights data for Canada for the period of July to September 2023. It outlines the challenges faced by small businesses, specifically highlighting a decline in sales and an increase in payment times. The report indicates that small business sales have dropped for six consecutive months, with an average year-over-year decline of 5.0% in the September quarter, which is a significant decrease compared to previous months. Payment times have worsened, with an average of 29.7 days to be paid, reflecting a reversal of earlier improvements. The report also discusses the broader economic context, noting that while nominal GDP rose, small businesses are not benefiting from this growth. The data suggests that consumer spending remains cautious despite some positive trends in household savings and wages. The report emphasizes the need for small business owners to adapt their strategies to attract customers and manage cash flow effectively.
