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CFIB outlines small biz frustrations with red tape


January 11, 2011
By Amanda Ryder

Jan. 11, 2011 – To launch Canada's second annual Red Tape Awareness
Week, the Canadian Federation of Independent Business (CFIB) has
released the Red Tape Diaries, a
collection of firsthand accounts detailing the frustrations Canadian small business owners face as a result of red tape.

Jan. 11, 2011 – To launch Canada's second annual Red Tape Awareness Week, the Canadian
Federation of Independent Business (CFIB) has released the Red Tape Diaries, a
collection of firsthand accounts detailing the frustration and hardship
Canadian small business owners face as a direct result of excessive
government regulation and red tape.

Contained within the pages of CFIB's eye-opening compilation is a
variety of harrowing tales which have been submitted by small business
owners from across the country. Examples include a Toronto-based store
owner whose primary source of advertising was taken away due to the
passing of an overbearing municipal by-law, and a New Brunswick-based
bakery whose store's opening was delayed because of conflicting
information regarding provincial licensing.

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"This is just a tiny sampling of the hundreds of thousands of stories
that are out there. It all adds up to a colossal waste of
entrepreneur's time and money and clearly diverts their focus away from
where it needs to be – building their businesses, creating jobs, and
expanding the economy," said CFIB Vice-President for Western Canada and
regulatory reform expert Laura Jones.

A 2010 CFIB report estimated that regulation costs Canadian
businesses a staggering $30 billion each year in compliance costs alone,
the brunt of which is being felt by the smallest firms. Whereas
businesses with more than 100 employees spend a yearly average of $1,117
per employee to comply with regulations, companies with 0 to 4
employees spend an average of $5,825.

According to Canadian businesses, the burden could be reduced by at
least 25 per cent without harming the legitimate objectives of
regulation such as protecting health and safety. "This is the equivalent
of a $7.5 billion annual stimulus package. It's time for Canadians to
demand that governments take this issue seriously. We hope these stories
will help," concluded Catherine Swift, President and CEO.

CFIB will be conducting a number of other special initiatives this
week to draw attention to the issue and encourage entrepreneurs across
Canada to advocate for change. Visit CFIB's Red Tape Awareness Week official web and Facebook pages to find out what's on tap for the rest of the week.


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