Small biz sidelined as Ottawa heads for summer break: Federation
· Toronto Sun
See more Toronto Sun on Google — save as a Preferred Source
Visit casino-promo.biz for more information.
OTTAWA — As the House of Commons prepares to rise for the summer, Canada’s small business owners say they’ve been ignored by Ottawa.
That’s according to new polling released Monday by the Canadian Federation of Independent Business (CFIB), which paints a bleak picture of Canada’s embattled small business ecosystem.
“Parliament may be taking a summer break, but small business owners don’t get one,” said the federation’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.”
Entrepreneurship under threat
Canada’s economic nightmare is having a severe impact on the ability of Canadian entrepreneurs to launch new ventures.
Over half of small business owners — 55% — say they wouldn’t recommend anybody starting a small business in Canada right now.
Nearly three-in-four of 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.
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.
Nearly 60% of business owners polled say riding fuel costs are putting them under extreme pressure, while 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.
What they’re calling for
Earlier this year, the CFIB released data that Canada is in the midst of an “entrepreneurial drought,” with business closures far outpacing new business creation.
Business entry rates in Canada, the CFIB siad, have fallen by nearly half since the mid-1980s, and remain at historic lows.
Owners also say skyrocketing crime rates are also discouraging business owners , who are shelling out tends of thousands of dollars on repairs, graffiti removal and protecting the personal safety of staff.
The CFIB is calling on Ottawa to reduce federal small business tax rates from nine per cent to six per cent, increasing small business deduction limits to $700,000, and introducing lower EI premium rates for smaller employers.
“With Canada facing an entrepreneurial drought, government needs to encourage entrepreneurship, not ignore it,” the federation’s Jasmin Guenette said.
“Small firms need meaningful tax relief, less red tape, and a government that acts.”