Small Business, Big Impact: Why B.C. Must Simplify to Grow

It's Small Business Week in B.C., a time to acknowledge the challenges and contributions of our local businesses. A closer look reveals a concerning landscape. Small businesses, vital to our economy and local communities, are contending with significant obstacles. Yet, we have the ability to foster an environment where investment is welcomed, growth is possible, and a better quality of life can be achieved.

The State of Business

Businesses are grappling with persistent inflation, escalating operating expenses, increased rents, and rising interest rates which severely impact their sustainability and all but eliminate capacity for growth. These persistent financial pressures make it difficult for small businesses to maintain profitability, invest in expansion, or even cover their day-to-day operational needs, leading to a precarious environment for many.

A complex and often disproportionate regulatory burden continues to stifle innovation and efficiency, diverting valuable resources from core business activities of actually working in, and on, a business. Findings from our Simplify to Grow: Boosting Business in British Columbia found that between 2006-2021 Canada's regulatory burden grew 37%, reducing investment by 9% and real GDP by 1.7%. These impacts are felt most acutely by small businesses.

Small businesses often lack the dedicated resources to navigate intricate compliance requirements, leading to increased administrative costs, delays, and a reduced ability to focus on growth and customer service. Consequently, small businesses face compliance costs per employee, which is seven times higher than large firms.

It was more than evident at last month's Union of BC Municipalities conference that growing public safety concerns have felt unanswered by many business communities. The challenges faced by businesses have led to an increase in property crime, decreased foot traffic, unsafe workplaces, and heightened security costs, while growing tent encampments and open drug use have created an unsafe physical environment for businesses to operate. The tangible and intangible costs associated with crime, from stolen goods and open drug use in front of businesses, to the psychological impact on employees and customers, further compound the challenges faced by B.C.’s small businesses.

Simplify to Grow – Regulatory Efficiency

The Greater Vancouver Board of Trade remains focused on advocating for policies that foster economic growth, reduce unnecessary bureaucratic hurdles, mitigate rising costs, address the public safety crisis and open drug use, and cultivate a more competitive investment climate for small businesses in British Columbia. We are urging provincial and federal governments to "Simplify to Grow", which means creating a faster, more competitive permitting process that replaces red tape with clarity and predictability.

This includes a "one-window, one-timeline" system for projects, a proactive approach to Indigenous partnerships, and industrial policies that make B.C. an attractive destination for global capital. Both Premier Eby and Prime Minister Carney have made it a priority of their government to make it easier to build major projects to create a more secure and diversified economy. This is a welcome step.

But it's important to recognize that major projects are not built in isolation; they are supported by a vast network of small businesses that provide essential services, supplies, and expertise, forming the backbone of our economic development. Getting shovels in the ground depends as much on the success of small businesses as it does on large firms

Still Kicking

Despite the many challenges, the entrepreneurial spirit in B.C. remains resolute and filled with a desire for success. Our small business owners and their teams exemplify resilience and a commitment to renewal, consistently demonstrating their ability to adapt and thrive in a demanding economic environment.

They are the innovators, constantly seeking new efficiencies and embracing technological advancements to try to stay competitive. They are the calculated risk-takers, venturing into new markets and developing novel solutions to meet evolving customer needs. Crucially, they are community builders, investing their time, energy, and resources to strengthen local economies and build vibrant neighborhoods. Even in this challenging environment, they are actively shaping the future of our province, driving progress and highlighting possible policy solutions.

Path Forward

Throughout Small Business Month and Small Business Week, recognize the contributions of small businesses and acknowledge the challenges they face. The difference is that they have the power to change the environment those businesses operate in.

As the fall legislative sessions continue in both B.C. and Ottawa, we urge our elected officials to commit to actively supporting small businesses across the country by putting economic growth at the heart of government decision-making. Because when businesses can operate efficiently, invest with confidence, and expand without unnecessary barriers, they create the jobs, innovation, and economic activity that lift the standard of living for all Canadians.