The figures come from a Canberra Business Chamber survey conducted this month, which collated responses from business to consumer, business to business and mixed businesses.

Just over thirty per cent of respondents said their business situation at January 1 was worse than it was in early December, while 41.46 per cent said it was much worse.

The first confirmed case of the Omicron variant in Canberra was recorded on December 3, with cases rising steadily thereafter.

Cancellations in the lead-up and post-Christmas, COVID exposures hitting already strained workforces, and supply chains bowing under the weight of infections have made a volatile start to the year for businesses.

"Most Canberra businesses are small and family enterprises, and they are telling us that they are hurting," Canberra Business Chamber CEO Graham Catt said in a statement.

"A 'triple whammy' of staff shortages, ongoing health measures, and a general lack of public confidence are impacting trade."

Most businesses surveyed faced staffing shortages due to COVID exposures and infections - 36.15 per cent had a quarter of their workforce unable to attend.

Pessimism registered for most respondents, with 36.15 per cent much more concerned about the impact of COVID now than they were in early December. Ten per cent of respondents said their businesses were no longer viable.

The majority also said the territory government's advice to work from home where possible had a negative impact on them (27.69 per cent said it had some negative impact, while 39.23 per cent reported it as significant). Though 31.53 per cent said it had no impact, and less than two per cent reported a positive impact.

ACT Chief Minister Andrew Barr last year said the territory's public sector would move to "hybrid working" in the future, giving public servants more flexibility to work from home or outside of traditional 9-5 hours.

Businesses relying on trade from the public sector said they were eager to see workers back in their offices.

"Without workers back in the city and town centres, the ongoing impacts and reliance on government financial assistance will stretch well into 2022, as evidenced by the survey results showing that that help is still needed," Property Council of Australia ACT Executive Director Adina Cirson said in a statement.

Businesses also reported that public health restrictions such as mask-wearing, rules around eating and drinking while standing and density limits had impacted them to various degrees.

14.6 per cent saw no change or revenue increased, 26.92 per cent saw a 10 to 30 per cent reduction in revenue, 22.31 per cent saw 31 to 50 per cent reduction, and 18.46 per cent saw more than 70 per cent reduction.

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