UMVA has learned that the upcoming FIFA World Cup may not be the financial windfall many Canadian small business owners were hoping for, according to a recent survey.
The survey, which gathered responses from 130 small business owners and 1,504 Canadians, found that 58% of Ontario businesses expect little to no revenue impact from Canada hosting the soccer tournament compared to a typical summer.
In a surprising twist, the survey also revealed that one in five Ontarians plan to watch World Cup matches at a locally or independently owned business, where patrons are expected to spend an average of $54 on food and drinks.
This is 11 times more than those who said they would cheer on their favourite team at a national chain during the tournament, highlighting the potential for small businesses to capitalize on the event – but only if they have the right location, staffing, and cash flow.
David Gens, a leading expert in small business financing, warned that recession concerns, coupled with rising operating costs and trade uncertainty, are having a negative impact on small businesses, making it difficult for them to take advantage of the World Cup opportunity.
With Canada having recently entered a technical recession, four out of five local business owners believe the country is already in a recession or heading toward one within the next 12 months, adding to the uncertainty and caution among small business owners.
The survey found that many Ontario businesses are focused on protecting margins rather than investing for growth, with 61% cutting spending, 34% delaying hiring, and 30% reducing staff or pausing expansion plans.
As the tournament approaches, 33% of small business owners say they will not benefit from the games at all, while 28% say their location will not see increased foot traffic, leaving few owners feeling optimistic about the potential windfall.
Only a small fraction of owners have made investments or changes ahead of the World Cup, with 17% extending operating hours, 16% increasing inventory, and just 11% hiring additional staff, highlighting the cautious approach many small businesses are taking.
