theglobeandmail.com
Canadian Entrepreneurs Adapt to Inflation and Tariffs
Canadian entrepreneurs, including LOHN, Mary's Brigadeiro, and Blume, are adapting to high inflation (reaching 8 percent during the pandemic) and increased tariffs by cutting costs, changing suppliers, and focusing on profitability to secure funding amid a challenging economic climate.
- How have rising inflation and tariffs in Canada directly impacted small business operations and profitability?
- Facing inflation and increased tariffs, Canadian entrepreneurs have dramatically altered business operations to reduce costs. LOHN, a candle and home fragrance company, outsourced manufacturing and shipping, laying off staff to improve profitability. Mary's Brigadeiro, a chocolate artisan, switched to local bean-to-bar chocolate suppliers despite higher costs, maintaining price parity.
- What innovative strategies have Canadian entrepreneurs implemented to mitigate the effects of inflation and maintain business viability?
- Rising inflation, reaching 8 percent during the pandemic, forced businesses to innovate. Increased costs for ingredients and imported goods led to operational changes like outsourcing (LOHN) and sourcing local ingredients (Mary's Brigadeiro). Blume, a wellness supplement company, navigated supplier changes while prioritizing ingredient integrity, absorbing some cost increases.
- What are the long-term implications of these economic pressures on Canadian businesses and consumer behavior, and how might this impact future investment strategies?
- The shift to profitability is paramount for securing investment in the current economic climate. Entrepreneurs are prioritizing efficiency, cutting non-essential expenses, and focusing on high-performing products. Consumer behavior reflects this trend, with increased price sensitivity and a preference for smaller purchases and locally-sourced goods, creating both opportunities and challenges for businesses.
Cognitive Concepts
Framing Bias
The article frames the narrative around the challenges faced by entrepreneurs, highlighting their adaptations and resilience in the face of economic hardship. This focus could potentially overshadow other aspects of the situation, such as the impact on employees or the broader societal consequences. The use of quotes from entrepreneurs supports this framing, and the headline (if any) likely reinforces this focus. However, the article attempts to present a balanced picture by including multiple perspectives and acknowledging that there are other factors influencing the situation.
Language Bias
The language used in the article is largely neutral and objective. Words like "dramatic changes", "soared", and "tough" are used to describe the economic situation, but these terms are descriptive and not overly emotional or loaded. The article mostly avoids subjective value judgments, and factual reporting outweighs subjective language.
Bias by Omission
The article focuses on the challenges faced by three Canadian entrepreneurs due to inflation and rising tariffs. While it mentions the impact on consumers, it doesn't delve into broader economic factors contributing to the situation, such as government policies or global economic trends. The lack of this wider context limits the analysis and could leave readers with an incomplete understanding of the overall economic landscape. Furthermore, there is no mention of the impact on employees of the companies mentioned in the article.
Gender Bias
The article features three female entrepreneurs. While this is positive representation, the article does not explicitly focus on gender issues or highlight any gender-specific challenges faced by these women. The article remains neutral and doesn't utilize gendered language. However, a deeper examination of how gender intersects with entrepreneurial challenges in this economic climate would strengthen the analysis.
Sustainable Development Goals
The article highlights the negative impacts of inflation, tariffs, and economic pressure on small businesses in Canada. Rising costs have forced businesses to reduce staff, outsource operations, and implement cost-cutting measures to survive. This directly affects decent work and economic growth by impacting employment, business sustainability, and overall economic activity.