The business group says red tape deterring next generation of Canadian entrepreneurs.
TORONTO — Regulation is costing small Canadian businesses more time and money than in 2012, according to the Red Tape Report by Canadian Federation of Independent Business (CFIB).
The report notes companies spent $37.1 billion on regulation in 2014, up from $31.7 billion in 2012, and spent an average of 842 hours a year complying with government rules and paperwork, an increase of 12%.
Regulation is also costing small businesses significantly more than their US counterparts, with the greatest gap among companies fewer than five employees, which pay 58% per employee ($6,683) than in the US ($4,240).
Company owners say that regulation could be cut by about 30%, or $11 billion a year, with no negative effect on important health, safety and environmental objectives of regulation. The savings would translate to 4.5 hours a week of extra time for the average business.
But the report raises troubling ramifications for the future. Forty-two per cent of small business owners would not advise their children to start a business given the burden of regulation.
Click here for a cop of the report.