Following the challenges brought about by the falling supply chains, cyber incidents have climbed up the second position. It has led to rising concerns among companies to become aware of the data breaches and attacks of malware and ransomware. Though climate change was at the 9th position in 2021, it came to the 1st ever position.
Next comes the revelation made by the federal government that the climate is warming at a double rate compared to the average climate change across the globe. Other significant challenges faced by any business include fire and explosion, excessive pollution, natural disasters, adoption of new technologies, and failures in critical infrastructure such as disruption in power supply, debilitating dams, bridges, and even rail tracks. Let’s take a look at the new challenges that are curbing the growth of Canada’s business companies like Burlington Boutique.
Interruption in business:
The disruption in the supply chain in 2021 has not just affected the businesses of Canada but also across the globe. The rippling impact of the pandemic and rising cases of COVID-19 pandemic along with extreme weather conditions and cyber attacks have threatened the resilience of most companies of the world. As a result, the supply chain has been pushed to the breaking point and led to business interruptions.
The greatest fear of any company, regardless of the industry, lies in its inability to yield high-quality products and services. No matter if it is a flood or a cyber attack or any other issue, business interruption can lead to costly and irreparable damages.
As is already mentioned, the rate of climate change is twice the global average and according to the experts, the effect is irreversible. The worst part is that the impact is going to increase to catastrophic levels in the future. Owing to this, climate change has also recorded the highest ever position amongst the top threats to Canadian business.
Shortage of professional labor:
Attraction, as well as retention of skilled workforce, has been a huge challenge for most businesses in Canada. As economies have reopened after the lockdowns, employers are struggling to find skilled laborers to get the job done. The pandemic has proved to be highly disruptive to the labor market and aggravated the existing problems caused by the changing dimensions of prospective employees.
The Bottom Line
With the pandemic posing a big threat and challenges in the supply chain of the country, unwanted interruptions remain a crucial concern for most Canadian businesses. On top of that, rising operational costs along with depreciating sales are some additional challenges to small and medium-scale businesses in Canada.
As per the reports of the Canadian Federation of Independent Businesses, a mere 40 percent of small businesses are gradually coming back to gaining normal revenues while 27 percent agree that they have completely recovered. Though technological advancement can help in the growth of innovation and proficiency, but if the business fails to harness it, it may threaten the existence of that very company.