The Canadian business landscape has had its fair share of ups and downs. Whether it’s the impact of global events, changing policies, or market trends, the country’s businesses have always been susceptible to various external factors. In this article, we showcase ten Canadian business news stories from the past year that every entrepreneur, business owner, and investor can’t afford to miss.
1. Shopify: The Canadian E-commerce Giant
Shopify is a leading e-commerce platform that enables entrepreneurs to create and manage their online stores. In 2020, the company’s value skyrocketed, exceeding some of Canada’s most prominent companies like Royal Bank, TD Bank, and Enbridge. The unprecedented demand for online shopping during the pandemic helped Shopify to grow exponentially and attract investors’ attention worldwide. Recently, Shopify announced that it was acquiring Stripe’s sales tax automation technology to enhance its services’ capabilities further.
2. Air Canada’s Financial Journey
The pandemic has had an immense impact on the aviation industry. Air Canada, one of Canada’s largest airlines, was hit hard by the sudden decline in air travel. Consequently, Air Canada found itself in a dire financial situation, forced to borrow interest-bearing loans to sustain its operations. With a sharp decline in revenue, Air Canada has seen its shares plummet and had to lay off thousands of employees. However, there are signs of positivity on the horizon, with the government of Canada announcing a financial support package for the struggling airline.
3. RBC’s Ethical Investment Announcement
Following increasing pressure from activists and consumers, Royal Bank of Canada (RBC), one of Canada’s largest financial institutions, pledged to stop financing oil sands projects by 2021. This decision was a landmark announcement, and its impact was felt across the energy industry and other financial institutions. RBC’s move demonstrates how businesses are increasingly considering the environmental impact of their actions.
4. Canada’s Trade under the USMCA
The USMCA, the updated trade agreement between Canada, the US, and Mexico, came into effect on July 1, 2020. The new agreement replaces the North American Free Trade Agreement (NAFTA) and introduces several changes that will affect Canadian businesses. Some of the significant changes include provisions for intellectual property, digital commerce, and the automotive industry.
5. Staying Ahead of the Game: Canadian Fintechs
Fintech, or financial technology, has transformed how businesses and individuals interact with financial services. Several Canadian fintech companies, such as Wealthsimple and KOHO, have made significant strides, disrupting the traditional financial industry. These companies provide innovative products and services that offer customers a seamless experience. As financial technology advances, Canadian businesses must keep pace to remain competitive.
6. Blackberry’s Comeback
Blackberry, the once iconic Canadian smartphone company, has had a tumultuous journey in the last decade. The company has steadily lost market share to its competitors and struggled financially. However, Blackberry has reinvented itself by pivoting towards enterprise software services. The company’s new direction is proving popular, with its shares increasing by almost 50% over the past year.
7. Loblaw’s Winning Streak
Loblaw Companies Limited is a Canadian supermarket chain that has been around for over 100 years. In recent years, Loblaw has embraced e-commerce and invested in its online shopping capabilities. This move proved invaluable during the pandemic when online shopping saw a massive surge. Loblaw’s robust online presence and essential products led to strong financial performance, with its shares outpacing those of its competitors.
8. The Rise of Cannabis Retail
Cannabis laws in Canada changed in 2018, allowing the sale of cannabis products for recreational use. This shift has led to a boom in the cannabis retail industry. Several Canadian cannabis companies, such as Canopy Growth Corporation and Aurora Cannabis, have become household names. With cannabis now a legal and mainstream product, the average Canadian businessperson should have cannabis retail on their radar.
9. News from Wealth Management Firms
Wealth management firms are an essential part of the Canadian financial industry, providing services such as investment advice and asset allocation. As the economy fluctuates due to Covid-19, wealth managers have been busy adjusting their clients’ investment portfolios. Companies such as TD, RBC, and BMO have been active in maintaining and expanding their services, hoping to remain at the forefront of the industry.
10. Canadian Small Businesses and Government Aid
2020 was a difficult year for small businesses, and many of them struggled to stay afloat during the pandemic. The Government of Canada recognized this and launched several support programs to help small businesses sustain themselves. The Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Business Account (CEBA) are two examples of government aid for small businesses.
Conclusion
The Canadian business landscape is ever-evolving, shaped by internal and external factors. Keeping an eye on Canadian business news can help businesspeople understand market trends, government policies, and new innovations. Shopify’s growth, Blackberry’s new direction, and Canada’s trade under the USMCA are just some of the significant stories that have emerged in the last year. By staying informed about these stories, businesses can gain strategic insights and make informed decisions.
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