Sizzle or substance: Sizzle or substance: The Role of Small Business in Diversifying the Economy Richard Truscott Director of Provincial Affairs, Alberta June12 2014 www.cfib.ca
No respect! www.cfib.ca
About CFIB: � Non-partisan, not-for-profit political advocacy organization � Founded in 1971 � 109,000 independently owned and operated � 109,000 independently owned and operated business members across Canada, including 10,000 in Alberta and 300 in Grande Prairie � Every sector of the economy, every region of the country � Lobby federal, provincial, and municipal governments www.cfib.ca
What makes CFIB unique? � Meet with thousands of small business owners in-person each week � Research-based organization, dozens of member surveys each year surveys each year � 1 member = 1 vote � Don’t take a position on a major new policy unless we first consult our members � In addition to lobbying work, we provide business counselling services, and access to member-only “privilege programs” www.cfib.ca
CFIB is born � Founder John Bulloch � John’s “bathtub moment” in 1969 � Feds proposed to tax small biz at 50% ! small biz at 50% ! (effective rate for big corporations was 25%) � 1971 CFIB formed � 40 th anniversary in 2011 � Also official “Year of the Entrepreneur” www.cfib.ca
Our history � Fighting big government, big business, big unions � Labour legislation, strikes – 1960s, 1970s � High taxes – always � High taxes – always � Workers compensation systems – over time � Fought bank mergers – 1998 � Credit/debit “Code of Conduct” – 2010 � Payroll taxes (CPP, EI) – now and for many years! � And many more in between!!! www.cfib.ca
Small biz is backbone of economy � More than 98% of all businesses are small or medium-sized enterprises (SMEs) � SMEs employ more than 60% of all Canadians and produce almost half of Canada’s economic output (GDP) 7 www.cfib.ca
Heart & soul of our communities www.cfib.ca
A Peak at the Trough: Canada Employment through recent recession 2008-2009: public sector vs. private sector by size www.cfib.ca
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CFIB Business Barometer™ Confidence among AB entrepreneurs still relatively strong Index (0-100) 85 Index 80 75 Canada 67.1 72.8 72.8 Newfoundland & Lab 65.2 70 67.1 Prince Edward Is. 59.4 65 Nova Scotia 57.0 60 New Brunswick 58.8 55 Quebec 60.6 Ontario 64.9 50 Manitoba 66.3 45 Saskatchewan 69.9 Alberta 40 Alberta 72.8 British Columbia 74.1 35 Canada 30 2009 2010 2011 2012 2013 2014 Source: CFIB Business Barometer Survey, May 2014 results www.cfib.ca
CFIB Business Barometer™ Intention to hire full-time staff within next three months % response 40 Up 35 35 30 30 25 20 15 Down 10 5 4 0 2009 2010 2011 2012 2013 2014 Source: CFIB Business Barometer Survey, May 2014 results www.cfib.ca
Small business priorities “Which of the following issues are the most important to your business”? (select as many as apply) Total tax burden 78 Government regulation & red tape 67 Shortage of qualified labour 62 Government debt/deficit 59 Cost of local government 53 Employment Insurance 46 Workers' compensation 33 Availability of financing 22 Source: CFIB Our Members’ Opinions survey, Jan- Mar 2014, Alberta data, Provincial labour laws 15 1,094 responses Other 16 www.cfib.ca 0 50 100
Government vision for entrepreneurship for entrepreneurship www.cfib.ca
Vision for small entrepreneurship “How confident are that your provincial government has a vision for small business?” 27 50 50 58 72 79 79 84 88 91 91 72 48 40 27 21 19 15 12 8 8 SK BC AB NL PEI NB ON NS MB QC Confident Not confident Don't know www.cfib.ca Source: CFIB report “Wanted Government Vision for Small Business”, Feb 2014
Vision for small entrepreneurship “How likely would you be to recommend starting a business in your province?” 10 24 28 40 40 51 56 57 60 64 74 88 72 68 58 48 40 39 36 31 24 SK AB NL BC PEI ON NB NS QC MB Likely Unlikely Don’t know www.cfib.ca Source: CFIB report “Wanted Government Vision for Small Business”, Feb 2014
Vision for small entrepreneurship My premier understands the reality of running a small business (% agree) 52 52 21 11 8 8 7 5 3 3 3 MB NS ON QC NL NB AB PEI BC SK Source: CFIB report “Wanted Government Vision for Small Business”, Feb 2014 www.cfib.ca
Vision for small entrepreneurship Provincial taxes discourage me from growing my business (% agree) 75 70 65 63 61 57 53 53 35 29 SK AB BC NL NB NS ON PEI QC MB Source: CFIB report “Wanted Government Vision for Small Business”, Feb 2014 www.cfib.ca
Impediment #1: RED TAPE RED TAPE www.cfib.ca
“Death by a thousand paper cuts!” EI Privacy StatsCan Food ROE CPP surveys labelling Labour GST code collections SMALL SMALL BUSINESS WCB OHS OWNER Environment Health regulations inspections Permits & Business Land use licenses registration by-laws Property Signage tax by-laws www.cfib.ca
A scary thought for Canada “Do you agree with the following statement: If I had known the burden of regulation, I may not have gone into business?” Diagree 21% 48% Agree 31% Don't know Source: CFIB Red Tape Report, Jan 2013, 8,562respondents www.cfib.ca
Red Tape Awareness Week � Red Tape Awareness Week: to raise public awareness about impact of red tape on small business (Jan 27 th – 31 st , 2014) � Provincial Report Card � Provincial Report Card � CRA Report Card � Golden Scissors Award � Paperweight Award � Video Join the red tape revolution � Online petition www.cfib.ca
Impediment #2: LABOUR SHORTAGES LABOUR SHORTAGES www.cfib.ca
Challenges for small business “What factors are limiting your ability to increase sales or production?” Insufficient domestic demand 21 Insufficient foreign demand 5 Foreign competition Foreign competition 6 6 Shortage of skilled labour 37 Shortage of un/semi-skilled labour 23 Management skills, time constraints 25 Shortage of working capital 23 Shortage of input products 2 Product distribution constraints 9 % response Limited space 19 Source: CFIB Business Barometer Survey, May 2014 results www.cfib.ca
“Help Wanted” Report www.cfib.ca
Strategies to help Better apprenticeship programs that are cost- • effective, easy-to-navigate, flexible, and in touch with current business realities New training tax credits that recognize investment New training tax credits that recognize investment • • that employers make in hiring, training, and retraining workers Job training programs that focus on needs of small • employers: Canada Job Grant program • provincial employer-sponsored training program • 26 www.cfib.ca
(More) strategies to help Employment Insurance (EI) changes so there are • no impediments for Canadians who are willing and able to work from finding employment Fix the Temporary Foreign Worker Program Fix the Temporary Foreign Worker Program • • Immigration reforms to ensure the skills and • qualifications of the people coming to Canada, at all skills levels, better match the needs of employers 27 www.cfib.ca
Questions? phone: 1-866-444-9290 phone: 1-866-444-9290 web: cfib.ca email: richard.truscott@cfib.ca twitter: @cfibAB www.cfib.ca
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