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Sizzle or substance:
www.cfib.ca
No respect!
www.cfib.ca
Sizzle or substance: Sizzle or substance: The Role of Small - - PowerPoint PPT Presentation
Sizzle or substance: Sizzle or substance: The Role of Small - - PowerPoint PPT Presentation
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,
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About CFIB:
Non-partisan, not-for-profit political advocacy
- rganization
Founded in 1971 109,000 independently owned and operated
www.cfib.ca
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
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What makes CFIB unique?
Meet with thousands of small business owners in-person each week Research-based organization, dozens of member surveys each year
www.cfib.ca
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”
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CFIB is born
Founder John Bulloch John’s “bathtub moment” in 1969 Feds proposed to tax small biz at 50% !
www.cfib.ca
small biz at 50% ! (effective rate for big corporations was 25%) 1971 CFIB formed 40th anniversary in 2011 Also official “Year of the Entrepreneur”
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Our history
Fighting big government, big business, big unions Labour legislation, strikes – 1960s, 1970s High taxes – always
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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!!!
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Small biz is backbone of economy
More than 98% of all businesses are small or medium-sized enterprises (SMEs)
www.cfib.ca
SMEs employ more than 60% of all Canadians and produce almost half of Canada’s economic
- utput (GDP)
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Heart & soul of our communities
www.cfib.ca
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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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www.cfib.ca 10
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CFIB Business Barometer™
Confidence among AB entrepreneurs still relatively strong
72.8 75 80 85 Index (0-100)
Index
Canada 67.1
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Source: CFIB Business Barometer Survey, May 2014 results
72.8 67.1 30 35 40 45 50 55 60 65 70 2009 2010 2011 2012 2013 2014 Alberta Canada
Newfoundland & Lab 65.2 Prince Edward Is. 59.4 Nova Scotia 57.0 New Brunswick 58.8 Quebec 60.6 Ontario 64.9 Manitoba 66.3 Saskatchewan 69.9 Alberta 72.8 British Columbia 74.1
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CFIB Business Barometer™
Intention to hire full-time staff within next three months
Up 35 30 35 40 % response
www.cfib.ca
Source: CFIB Business Barometer Survey, May 2014 results
Down 4 5 10 15 20 25 30
2009 2010 2011 2012 2013 2014
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Small business priorities
“Which of the following issues are the most important to your business”? (select as many as apply)
67 78
Government regulation & red tape Total tax burden
www.cfib.ca
16 15 22 33 46 53 59 62
50 100
Other Provincial labour laws Availability of financing Workers' compensation Employment Insurance Cost of local government Government debt/deficit Shortage of qualified labour
Source: CFIB Our Members’ Opinions survey, Jan- Mar 2014, Alberta data, 1,094 responses
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Government vision for entrepreneurship
www.cfib.ca
for entrepreneurship
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Vision for small entrepreneurship
“How confident are that your provincial government has a vision for small business?”
27 50
www.cfib.ca
Source: CFIB report “Wanted Government Vision for Small Business”, Feb 2014
72 48 40 27 21 19 15 12 8 8 50 58 72 79 79 84 88 91 91 SK BC AB NL PEI NB ON NS MB QC
Confident Not confident Don't know
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Vision for small entrepreneurship
“How likely would you be to recommend starting a business in your province?”
10 24 28 40
www.cfib.ca
88 72 68 58 48 40 39 36 31 24 40 51 56 57 60 64 74
SK AB NL BC PEI ON NB NS QC MB Likely Unlikely Don’t know
Source: CFIB report “Wanted Government Vision for Small Business”, Feb 2014
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Vision for small entrepreneurship
My premier understands the reality of running a small business (% agree)
52
www.cfib.ca
3 3 3 5 7 8 8 11 21 52 MB NS ON QC NL NB AB PEI BC SK
Source: CFIB report “Wanted Government Vision for Small Business”, Feb 2014
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Vision for small entrepreneurship
Provincial taxes discourage me from growing my business (% agree)
www.cfib.ca
29 35 53 53 57 61 63 65 70 75 SK AB BC NL NB NS ON PEI QC MB
Source: CFIB report “Wanted Government Vision for Small Business”, Feb 2014
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Impediment #1: RED TAPE
www.cfib.ca
RED TAPE
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“Death by a thousand paper cuts!”
SMALL
GST collections Labour code EI Privacy ROE Food labelling CPP StatsCan surveys
www.cfib.ca
SMALL BUSINESS OWNER
WCB Business registration Property tax Signage by-laws Permits & licenses Land use by-laws OHS Environment regulations Health inspections
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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?”
21%
Diagree
www.cfib.ca 48% 31%
Agree Don't know
Source: CFIB Red Tape Report, Jan 2013, 8,562respondents
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Red Tape Awareness Week
Red Tape Awareness Week: to raise public awareness about impact of red tape on small business (Jan 27th – 31st, 2014)
Provincial Report Card
www.cfib.ca
Provincial Report Card CRA Report Card Golden Scissors Award Paperweight Award Video Join the red tape revolution Online petition
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Impediment #2: LABOUR SHORTAGES
www.cfib.ca
LABOUR SHORTAGES
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Challenges for small business
“What factors are limiting your ability to increase sales or production?”
21 5 6 Insufficient domestic demand Insufficient foreign demand Foreign competition
www.cfib.ca
Source: CFIB Business Barometer Survey, May 2014 results
6 37 23 25 23 2 9 19 Foreign competition Shortage of skilled labour Shortage of un/semi-skilled labour Management skills, time constraints Shortage of working capital Shortage of input products Product distribution constraints Limited space
% response
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“Help Wanted” Report
www.cfib.ca
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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
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- 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
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(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
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- 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
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Questions?
phone: 1-866-444-9290
www.cfib.ca