Unnecessary bureaucracy costing Canadian businesses billions every year
While the pandemic has been incredibly difficult for many Canadian businesses, it's not the only thing negatively affecting many of them.
According to a news release from the Canadian Federation of Independent Businesses (CFIB), regulation fees cost small businesses roughly $38.8 billion each year.
Additionally, 10 per cent of this--$10.8 billion--can be considered unnecessary, redundant, or overly burdensome regulation or red tape, according to CFIB.
Further, while regulatory costs associated with the pandemic were not included in the estimate, the majority--83 per cent--of small business owners agreed the virus substantially increased compliance costs.
“COVID-19 has battered the economy and hammered Main Street. As we look towards recovery, reducing red tape is a win-win--it’s a low-cost way for governments to stimulate the economy while still protecting needed regulation,” Laura Jones, executive vice-president of CFIB, said in the release.
Further, while 94 per cent of entrepreneurs say it's important for federal and provincial governments to prioritize reducing red tape for businesses, only 15 per cent approve of the federal government's commitment, and 24 per cent approve of the Province's.
Moreover, 87 per cent of small-business owners said excessive government regulations significantly elevate their already-heightened stress levels.
“Small businesses need to recover so Canadians have jobs to come back to post-pandemic. It makes imminent sense for red tape reduction at all levels of governments to be part of that plan. Indeed, red tape reduction in areas like speedy municipal patio approvals during the pandemic helped many businesses survive,” Jones continued.
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