A new survey of small businesses does not bode well for local governments. The survey, conducted by the Canadian Federation of Independent Business (CFIB), finds that our municipality is not meeting the needs of its small business community.
Close to 900 businesses in the region took part in CFIB’s face-to-face survey, which asked for an assessment of the local government's overall awareness of the small business sector, how reasonable property tax levels were, the fairness of by-laws and regulations, the control of government wage levels and the value-for-money of public services. Across the board, Kitchener, Waterloo and Cambridge received more "poor" rankings than the other options combined. View the results of the survey yourself by following this
link.
"What the local government needs to do is set up the parameters," says Plamen Petkov, senior policy analyst with CFIB. "Where is it (the government) going to be in terms of taxation, where is it going to be in terms of regulations. Give the small business community the opportunity to do what they do best -- to run their business."
One of the greatest areas of concern was over control of government wage levels, as responses of "poor" ranged from 73 to 88 per cent across the region. It's a number that's not altogether surprising to Art Sinclair, Vice-President of the Greater K-W Chamber of Commerce, especially considering the challenging economic times from which we are only now beginning to emerge.
"Most businesses in Waterloo Region, small or large, have had to exercise some serious restraint and fiscal responsibility over the last two years because of worldwide economic conditions," Sinclair explains. "And I think what this survey somewhat indicates is that businesses are not seeing that same restraint and control being exercised by government."
Sinclair suggests that public sector salaries may have gone "beyond what is reasonable" given the economic conditions of the day.
Both the Chamber and the CFIB are in agreement on the importance of small businesses in our community.
"Across the country, small businesses create the most net jobs," states Petkov. "Also, in terms of GDP, the small business sector contributes to about 50 per cent of the GDP. So it's half of the economy."
Sinclair concurs, suggesting that a positive business climate fostered by local government turns into a win-win for the community because the business is able to flourish and grow, employing more people and paying more in tax, which in turn keeps the economic engine of a community chugging along.
"Research in Motion at one time, 25 years ago, was a small business. And we've seen what they've grown into," Sinclair points out. "So that's where a lot of the activity is, that's where the entrepreneurs are, and from that perspective, every community across Canada, I think, has a certain envy of Waterloo Region. Because in the past we've had that culture of entrepreneurship."