A vast majority of small businesses in Canada do not have a health-related continuity plan to prepare for such business disruptions as the H1N1 pandemic, a recent survey commissioned by BMO Bank of Montreal has found.

A survey of more than 800 small businesses, conducted in early June by Harris/Decima, found that 82% of companies had not developed a health-related continuity plan. Only one in 10 had either developed or reviewed a health-related continuity plan stemming from the H1N1 virus scare.

Half of respondents without a plan in place said it was because they do not think they need one. Another 25% said that developing a contingency plan has not been a priority, while 23% said they are too busy with managing day-to-day operations.

“Although the worst of the recession might have passed, there are factors, such as H1N1, that could disrupt business and therefore business owners must remain vigilant — even to the point of crafting contingency plans,” cautioned Michael Gregory, senior economist at BMO Capital Markets.

But roughly half of small business do have a general backup plan for dealing with sudden events outside their control, according to the study. Three quarters of businesses with such a plan said it had helped them deal with the recession.

“When it comes to navigating through tough economic times and other potential risks, having a backup plan gives small business owners an advantage when unexpected challenges arise,” said Gail Cocker, senior vice-president of commercial banking at BMO Bank of Montreal. “For any small business owner there’s real value in hearing how others are coping and managing through these current business conditions.”

Regionally, the poll found that small business owners in Quebec were the least likely to have reviewed or developed a health-related continuity plan, with just 5% of businesses having prepared a plan. Only 19% of Quebec respondents had developed a contingency plan before the downturn, compared to 34% of Ontario businesses, and 32% of businesses in Western Canada.

IE