Red Tape a burden on Canadian small businesses

Canadian businesses spend $36 billion per year on regulation. But government could reduce about 30 per cent of these regulations without harming the environment or the health and safety of Canadians

Eliminating unnecessary red tape could save Canadian businesses nearly $11 billion per year, according to a new essay released Tuesday by Canadian public think tank the Fraser Institute.

If governments across Canada want to help increase productivity—and the possibility of a four-day work week—they should eliminate excessive regulation on businesses and entrepreneurs, said the report.

“Businesspeople and entrepreneurs in Canada should be focused on innovation, improving products, serving customers and growing their businesses, not filling out forms and reports to various levels of governments, which takes time and imposes real financial costs,” said Steven Globerman, editor of the essay series on ways to improve productivity, which is necessary to achieve a four-day work week.

The report said Canadian businesses spend $36 billion per year on regulation. But government could reduce about 30 per cent of these regulations without harming the environment or the health and safety of Canadians. 

It said Canada’s smallest businesses and startups bear significantly higher costs than larger, more established businesses. Specifically, small businesses (with fewer than five employees) pay five times the per-employee cost of regulation compared to large businesses (with more than 100 employees).

 

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