Small businesses in the Regional District of Fraser-Fort George share struggles with finding staff, economic instability and a need to diversify their operations, according to a new report issued Tuesday, Dec. 3.
The report is from Community Futures Fraser Fort George’s Regional Business Outreach Program and the organization’s regional business liaison.
It was commissioned to help businesses in the region navigate “significant economic changes influenced by forestry policy impacts and economic downturns.”
For the report, interviews were held with 210 small business owners from 23 sectors across the Fraser-Fort George region from July 2023 through July 2024. These businesses are said to contribute more than $68 million to the local economy each year.
A regional round table made up of economic development representatives from Mackenzie, McBride, Prince George, Valemount, Lheidli T’enneh First Nation and McLeod Lake Indian Band were consulted as well as officials from the Regional District of Fraser-Fort George and the provincial Ministry of Jobs.
For the report, 100 businesses were interviewed in Prince George and the surrounding area.
Of the businesses surveyed, 77 per cent said they were seeing growth after the challenges they faced during the COVID-19 pandemic in part due to “robust support infrastructure and strong industry-academia collaborations.”
Prince George has the most diverse business landscape of any of the areas covered by the report, with small, medium and large enterprises; 43 per cent of the businesses covered by the survey were family-run micro-businesses, which are those employing five or fewer people.
That diversity is said to be one of Prince George’s economic strengths, along with a willingness to embrace new technologies and expanding their digital footprint.
Despite the resiliency, Prince George businesses are said to be struggling with high operational costs due to wages and overhead as well as competing in both the local and global markets.
When it comes to annual revenues, 28 per cent of businesses in the city earn less than $50,000 and 22 per cent earn more than $1 million.
The report found that to grow, Prince George businesses need advanced financial tools, development in digital marketing, technological upgrades and support for large-scale sustainability projects.
Mackenzie and other communities in the regional district’s Electoral Area G, the report said, have faced a lot of challenges from mill closures and struggles in the forestry sector that were made worse by the COVID-19 pandemic. 55 businesses in the community were interviewed for the report.
The small and micro-businesses that make up the community’s economic core need financial support, training in how to use digital marketing and commerce options and training in how to adopt sustainable business practices.
Of the businesses surveyed in Mackenzie, 70 per cent had 10 or fewer employees and 75 per cent qualified as micro-businesses. Around 26 per cent of businesses in Mackenzie earn less than $50,000 in revenue per year and 26 per cent earn more than $1 million.
On top of forestry sector challenges, the report says Mackenzie is facing high burnout rates in its workers and trouble finding skilled labour.
In spite of those challenges, the report commends the spirit of mutual co-operation between Mackenzie businesses and their willingness to diversify their revenue streams.
The final area covered by the report are communities in Robson Valley-Canoe and the regional district’s Electoral Area H, which includes McBride and Valemount, where 55 businesses were interviewed.
Because that area is so reliant on forestry, tourism and agriculture, the report said it is vulnerable to the unpredictability caused by climate change and downturns in those sectors.
Other challenges include supply chain issues, struggles to find ways to effectively market the area and finding skilled labour.
Because of its geographical location, businesses in the area are said to have limited access to training and resources.
To navigate those challenges, the report said those businesses need “comprehensive financial and educational support” and need to “leverage opportunities in community engagement and renewable energy solutions.”
Listing the area’s greatest strengths, the report said that 83 per cent of businesses have embraced sustainable practices and renewable energy options. Because of the proximity to the Rocky Mountains, area businesses are able to take advantage of unique tourism opportunities.
Through the interview process, 60 per cent of businesses in the area were found to be working on improving their efficiency, 51 per cent are adopting new technologies to increase productivity, 24 per cent said they were currently flourishing and 63 per cent said they were growing their revenue.
All the regions surveyed are said to need more support in finding skilled workers, opportunities for professional development, more initiatives promoting diversity, assistance entering new markets, increased collaboration between businesses and increased engagement with community planning.
The report lists the region’s 10 greatest needs when it comes to helping businesses become more resilient:
- Better access to capital and financial support,
- Better digital infrastructure and connectivity,
- Assistance implementing sustainable environmental practices,
- Greater access to programming addressing labour and skill shortages,
- Assistance development marketing strategies,
- Assistance navigating regulations,
- Support in adopting innovative practices,
- Improving collaboration between businesses,
- Developing crisis management plans in case of another pandemic-level disruptive event and
- Tailored programs to assist specific groups like retiring business owners, Indigenous-owned businesses, women-led businesses and young entrepreneurs.
Implementing these proposed support programs, the report concludes, will help promote the economy of the entire Fraser-Fort George region.
In a media release accompanying the report, Community Futures representatives said regional businesses have done well so far to navigate economic uncertainties in recent years.
“This report is a testament to their efforts, and Community Futures Fraser Fort George is committed to standing by them as they continue to build a strong, sustainable future for our region,” organization treasurer Ben Campbell said.
Prince George Mayor Simon Yu said in the release that the report’s findings will be important going forward.
“Access to the insights in this report is invaluable for both current and aspiring business owners. Initiatives like this, along with events such as the B2B Expo in February, are essential for fostering growth in our community,” Yu stated. “Knowledge is power and sharing it through collaboration is the key to building a resilient and thriving business ecosystem.”
The full report can be found online at cfdc.bc.ca/wp-content/uploads/2024/11/Regional-Business-Liaison-Overview.pdf.
