Calgary, October 21, 2024 – As the Alberta Legislature prepares to reconvene on October 28, the Canadian Federation of Independent Business (CFIB) is calling on the provincial government to tackle the rising costs and ongoing affordability challenges that continue to strain Alberta small businesses.
“Alberta small businesses are grappling with unprecedented challenges, from high costs to low consumer demand,” said Bradlee Whidden, Western Policy Analyst at CFIB. “It's essential for the government to prioritize policies that reduce these burdens and make it more affordable to operate in our province.”
Nearly one-third (30%) of Alberta small businesses are operating under considerable financial strain with owners reporting they are in weak or critical condition, according to CFIB data from September 2024. The strain has over half (52%) of the province’s small business owners advising others against starting a business right now, with the majority (92%) citing the cost of doing business as the primary reason.
Key costs weighing heavily on Alberta’s small businesses include taxes and regulations, with 74% of owners identifying these as significant pain points. Insurance premiums (69%) and wage pressures (67%) are also major concerns.
This growing financial strain highlights the urgent need for provincial action to address the escalating costs that threaten the viability of small businesses, which are crucial drivers of Alberta’s economy and local communities.
The Alberta Government has projected multi-billion dollar surpluses in its latest budget, creating room for both tax and debt reduction. To support small businesses and Albertans, CFIB recommends the provincial government:
- Reduce or eliminate the small business tax rate (currently 2%), while indexing the inclusion threshold to inflation, raising it from $500,000 to $700,000.
- Reduce the Insurance Premium Tax, currently set at 4%.
- Introduce a new 8% personal income tax bracket, as previously promised.
- Refrain from increases to the minimum wage and introduce a stable, predictable framework for future adjustments.
“Given the province’s strong fiscal position, the Alberta Government is in a good position to provide cost relief to both residents and businesses" concluded Whidden. "By reducing these financial burdens, the government can help businesses not only survive but thrive, creating jobs and sustaining local communities."
CFIB is encouraging small business owners to sign its petition, urging the Alberta government to take meaningful action in reducing the cost of doing business and improving overall affordability.
For media enquiries or interviews, please contact:
Bradlee Whidden, CFIB
587-971-8933
Bradlee.Whidden@cfib.ca
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