Small businesses spend more than 250 hours a year wrapped up in red tape: CFIB

A new report found that Canadian small businesses spend over 250 hours, or 32 business days, a year wrapped up in red tape.

The report, released by the Canadian Federation of Independent Business (CFIB) in partnership with Intuit QuickBooks found that small businesses in Canada spent 735 hours complying with regulation last year, with more than a third of that spent on red tape that could be eliminated without compromising public health and safety.

“Business owners lose an entire month’s worth of productivity to filling out lengthy or redundant forms, navigating mazes of government websites, and deciphering government jargon. That is crucial time that could be better spent on activities like training staff, planning business expansions, serving customers or even spending time with family,” Emily Boston, senior policy analyst with CFIB said in a statement.

“As governments at all levels look for solutions to Canada’s productivity problem, eliminating regulatory barriers and giving small business owners their time back needs to be a top priority.”

The report found that time spent on red tape increased by 35 per cent since 2020 and from 189 hours in 2020 to 256 hours in 2024.

1:55 Report finds government red tape halting affordable housing construction in B.C.

Many regulations are justified, the report states, as they can have implications on health, safety, and environmental outcomes, but some regulations are excessive and deliver little to no benefit.

Get daily National news

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

Sign up for daily National newsletter Sign Up

By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

The report estimates that the annual cost of regulations is now more than $51 billion.

The CFIB said that when paperwork, permits and compliance requirements bog down businesses, it drains productivity, wages and even morale.

“Provincially, one of the biggest challenges that small businesses raise is dealing with the PST and HST burdens,” Boston added.

“Another great one that you can look to interprovincially is making sure provinces have mutually recognized regulations for example in the trucking industry. So, if you have a trucking business there will be different standards that apply in Alberta versus B.C., which takes a lot of time and energy for small businesses to navigate on both sides of the border.”

CFIB put together a 10-point plan with ways for governments to reduce red tape, which includes measuring the regulatory burden, staying accountable to the public, prioritizing plain and simple language, and making regulatory accountability a political priority.