As the House of Commons prepares to rise for the summer, Canada's small business owners say they've been ignored by Ottawa, according to new polling released Monday by the Canadian Federation of Independent Business (CFIB).
The CFIB data paints a bleak picture of Canada's embattled small business ecosystem, with over half of small business owners — 55% — saying they wouldn't recommend anybody starting a small business in Canada right now.
Entrepreneurship Under Threat
Nearly three-in-four Canadian small business owners, or around 73%, say they don't feel supported by the federal government — with the soon-to-be-concluded spring session bringing them no relief.
"Parliament may be taking a summer break, but small business owners don't get one," said CFIB's Corinne Pohlmann. "Ottawa has had every opportunity to lower the costs of doing business this past session, but it chose not to. Government has been all too willing to move quickly on large-scale projects for big businesses, but it has lacked the same ambition when it comes to small firms."
The spring economic update, released this past April, contained some promising policy points, the CFIB said — including the Employee Ownership Trust tax exemption being made permanent and a reduction in Canada Pension Plan (CPP) premiums — but they've done little to improve conditions.
Key Concerns for Small Business Owners
- Nearly 60% of business owners polled say rising fuel costs are putting them under extreme pressure.
- Just under half say their slim margins are being stretched to the limit by taxes.
- Forty-three per cent of those polled say economic and political instability are also weighing heavily.
- Skyrocketing crime rates are discouraging business owners, who are spending thousands on repairs, graffiti removal, and protecting staff safety.
What They're Calling For
Earlier this year, the CFIB released data indicating Canada is in the midst of an "entrepreneurial drought," with business closures far outpacing new business creation. Business entry rates in Canada have fallen by nearly half since the mid-1980s and remain at historic lows.
The CFIB is calling on Ottawa to reduce federal small business tax rates from nine per cent to six per cent, increase small business deduction limits to $700,000, and introduce lower EI premium rates for smaller employers.
"With Canada facing an entrepreneurial drought, government needs to encourage entrepreneurship, not ignore it," said CFIB's Jasmin Guenette. "Small firms need meaningful tax relief, less red tape, and a government that acts."
