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Brachman, who typically projects a 10 per cent growth when things pick up in September, saysÌýthe pandemic and the cost of living has left her feeling cautious about how things will go this year.Ìý

“There’s confidence, but by the same token you’re nervous wondering, ‘What is your September going to be like?’ ” she said. “Are we going to have kids in who want to return to or try dance? How many are coming back, or have the majority moved on to something else?”

Brachman is one of hundreds ofÌýOntario business owners surveyedÌýwhose confidence levels have plummeted since March. , long-term confidence levels for the next 12 months dropped 6.7 points to 49.2, while short-term confidence levels for the next three months dipped 1.6 points to 48.4.

The barometer is measured on a scale between 0 and 100. A score above 50 indicates the number of business owners expecting their establishments to perform better over the next year is higher than owners predicting a weaker performance. According to past (pre-pandemic) results, index levels normally range between 65 and 75 when the economy is growing.

Both ratings set the province at a new low, as Ontario now ties Quebec for the third-lowest levels over 12 months,Ìýin addition to occupying the second-lowest score inÌýconfidence for the next three months.

“There’s a general sense of frustration that things haven’t really gotten better,” said Ryan Mallough, vice-president, legislative affairs (Ontario) for CFIB. “I think a lot of small businesses that continue to look at the both the federal and provincial governments with the general question: ‘What are you doing to reduce our costs?’”Ìý

Despite the long-awaited announcement to return the carbon levy rebate to small businesses, the federal budget, presented earlier this month by Finance Minister Chrystia Freeland, didn’t include any type of relief toward the major costs of conducting operations for small businesses.

BrachmanÌýsaid there was “nothing for small businesses”Ìýin the federal budget.ÌýNow, she’sÌýlooking to the provincialÌýgovernment to help restore confidence, after it made the decision to ceaseÌýthe Digital Main Street program,Ìýa $57-million initiative meant to help OntarioÌýsmall businessesÌýenhance their online presence, as of March 31.

“To me, that was a blow,” Brachman said. “I’ve been able to build the website through various options, maintain it, updated it and put new things in place by applying for grants to do this. Now that’s all gone, so anything that I do on my website now is out of my pocket.”

The report found 57 per cent of small- and medium-sized businesses in OntarioÌýpointed to insufficient demand (domestic or foreign) as the top limitation in sales. Other constraints include insurance and fuel costs, as well as wage and tax/regulatory costs.Ìý

The dropping confidence levels come after businessesÌýpreviously reported optimismÌýabout the future as they bounce back from the pandemic.Ìý

As effects from the pandemic continue to linger among businesses, Mallough said owners have accepted the “new reality” it has presented, as most challenges currently facing businesses, such as foreign conflicts putting pressure on supply chains and inflation, can be traced back to its onset.

“We went from hearing, ‘Man, if onlyÌýwe didn’t go through a global pandemic,’ to ‘Man, interest rates are high, the carbon tax keeps going up and governments aren’t doing enough now to fix it,’” Mallough said.

For Brachman, facing the new reality means having to increase prices on select itemsÌýeven as cash-strapped parents are becoming more cautious about their purchases.

“If you were to buy a bag to travel with your costumes, you’re looking at $300 or $400 for an item,” she explained. “And if you’re worried about your grocery bill, you’re not going to buy it.”