The Canadian Federation of Independent Business (CFIB) is sounding the alarm on the devastating effects of an "entrepreneurial drought" that's plaguing the country, with business closures far outpacing new openings.
According to the CFIB, small businesses across Canada are under mounting pressure from every angle, with rising costs, weak consumer demand, and limited access to capital all contributing to the death of entrepreneurship in this country.
The federation is urging Canada's premiers to support entrepreneurship and economic growth by delivering federal small business tax relief and accelerating efforts to tear down internal trade barriers.
Reducing the federal business tax rate to six per cent and increasing deduction thresholds to $700,000 would save small business owners upwards of $33,000 per year, the federation claims.
Despite provincial and federal politicians' promises to break down internal trade barriers, the CFIB says very little has been done, with data showing 69% of respondents reporting no improvement over the past year, and 16% saying the situation has only gotten worse.
One of the clearest examples of this failure is the lack of progress on direct-to-consumer alcohol shipping, which was supposed to be implemented by May but has yet to happen, with many provinces now 50 days late.
The CFIB is calling on governments to put small business priorities at the centre of their agenda, and is urging premiers to take action on these issues ahead of this week's Council of the Federation meeting.
A private member's bill tabled in the House of Commons would allow businesses to ship beer, wine and spirits from one end of Canada to the other, but it has made no movement in the House since passing first reading on March 9.
