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www.cfib.ca
How Big is Small Business? Top 5 Things Entrepreneurs Need to Know
MantraVision 2015
Plamen Petkov, Vice-President, Ontario & Business Resources
October 21, 2015
www.cfib.ca
Canadian Federation of Independent Business (CFIB)
CFIB is a not-for-profit, non-partisan organization representing over 109,000 small and medium-size businesses across Canada, including 42,000 businesses across all sectors in Ontario.
Each week, our representatives make nearly 2,000 personal visits to member businesses across Canada, allowing us to speak credibly on behalf of our members.
CFIB members set association policy through Mandate votes with “one member, one vote rule” – research capacity is second to none.
CFIB is 100% funded by members.
2
www.cfib.ca
CFIB’s Ontario Member Profile
Our diverse membership of 42,000 businesses is a good reflection of the Ontario economy
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Professional services7%
Hospitality6%
Agriculture5%
Finance, Insr, Real Estate5%
Enterprises & admin mgmt4%
Social services4%
Other4%
Transportation3%
Retail21%
Construction13%
Manufacturing11%
Personal, Misc. services10%
Wholesale7%
www.cfib.ca
Small business employment
SMEs employ 89 per cent of all private sector employees
Source: Industry Canada, Key Small Business Statistics, August 2013
Small (1-99) 67%
Medium (100-499) 22%
Large (500 +) 11%
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www.cfib.ca
Small business employment
94% of Ontario Businesses have fewer than 20 Employees
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1-4 employees 23.5%
5-19 employees 13.6% 20-49 employees
3.4%
50-499 employees 2.1%
500+ employees 0.1%
Businesses with no employees
57%
Source: Industry Canada, Key Small Business Statistics, August 2013
www.cfib.ca
Respect for small business
How much respect do you have for each of the following in Canada? (Average level of respect, scale 0 to 10)
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5.1
5.3
5.6
5.6
5.9
7.0
7.0
8.2
8.7
Labour unions
Government
Banks
Large companies
Legal system/Courts
Healthcare system
Education system/Schools
Small business
Farmers
Source: CFIB, Perspectives on small business in Canada, July 2011
www.cfib.ca
Entrepreneurship as a career choice
Running a business has been a rewarding career choice (% response)
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Source: CFIB, Point of View survey on CFIB’s 40th Anniversary, based on 3,594 responses
Agree, 92
Disagree, 7
Don't know, 1
www.cfib.ca
Reasons to go into business
Why did you become a business owner? (% response)
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Source: CFIB, Point of View survey on CFIB’s 40th Anniversary, based on 3,594 responses
5
13
20
20
24
42
45
66
Other
Other suitable job opportunities were not available at the time
To continue the family business
Had a great idea for a business that I wanted to pursue
To have a more flexible schedule
To make better use of my skills and knowledge
Financial opportunity
To be my own boss and make my own decisions
www.cfib.ca
The things nobody tells entrepreneurs
1. Good help is TRULY hard to find
2. Taxes and more taxes
3. The cost of getting paid
4. Death by 1000 paper cuts
5. Being part of a biz group
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www.cfib.ca
Secrets of success
During the past three years, which of the following elements have been important to the success of your business?
(% response)
11
Source: CFIB, Point of View survey on CFIB’s 40th Anniversary, based on 3,594 responses
5
10
16
18
31
54
60
61
63
Don't know
Defined business plans
Family support
Innovation
Passion for what I do
Product(s)/Service(s)
Customer loyalty
Hard work
Employees
www.cfib.ca
Contribution to communities
As a business owner, how have you contributed to your community? (% response)
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Source: CFIB, Point of View survey on CFIB’s 40th Anniversary, based on 3,594 responses
1
5
23
47
47
59
72
74
85
No involvement
Other
Donating employees’ time
Donating my time
Promoting local charities
Sponsoring sports teams
Donating goods or services
Financial donations
Employing locals
www.cfib.ca
Shortage of Labour “During the past three years, have you had difficulty hiring new employees?”
Source: CFIB, Small Business and Labour Survey , 2015, n=8824;
13
Yes, it was very difficult,
27
Yes, it was somewhat difficult, 40
No, I had no difficulty hiring
for the available
positions, 20
No, I wasn’t looking to hire, 13
www.cfib.ca
What types of positions are you having difficulty filling?
14
8
21
33
40
54
Jobs that require university education
Jobs that require no formal or specific training
Jobs that require a college diploma or apprenticeship training
Jobs that require a high school diploma or occupation-specific training
Jobs that require on-the-job training
Source: CFIB, Training in Your Business survey, 2014, n=6705;
www.cfib.ca
Selection of the taxes Ontario SMEs might pay
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Premiums and Payroll Tax
• Workers’ Compensation
• EI, CPP and Proposed ORPP
premiums
• Employer Health Tax
Sales and Excise Tax
• HST
• Fuel and gasoline taxes
• Insurance taxes
• Tobacco taxes
• Liquor mark-ups
Corporate Income Tax
• Small business corporate tax rate
• General corporate income tax rate
• Manufacturing and Processing rate
Property Tax
• Property tax rates
• Land Transfer tax
• Estate Administration Tax
Personal Income Tax Rates
College of Trades fees
Environmental Stewardship Fees
In Ontario, the average
commercial property tax
is 2-3 times higher than
what residents pay!
www.cfib.ca
Which forms of taxes affect the growth of your business the most?
63
54
47
43
42
3
Payroll Taxes (e.g. EI, CPP, WCB, etc.)
Corporate Income Taxes
Property / Capital Taxes
Personal Income Taxes
Sales Taxes (e.g. GST/HST, PST)
Don't know
Source: CFIB, 2014 Pre-budget survey, 8000 responses, Fall 2014
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www.cfib.ca
Credit cards – how much does your card cost?
Some credit cards cost small businesses 1.7%-2% of the transaction cost.
Others.... 2%....3%...4%...
• And the merchants don’t know how much each transaction will cost them!
And that’s only the beginning...
Restrictive contracts
Deceptive sales tactics
No dispute resolution process for merchants
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www.cfib.ca
Credit Card Code of Conduct – The changes Requires processors to pass along Visa/MC reductions
announced in November 2014
Cuts are between 6-22% depending on the card type
Merchants will be able to opt out if savings aren’t passed on
Limits auto-renewals to a maximum of 6 months
Applies to mobile payments, reducing opportunity for fee grabs
Improved dispute resolution process
Credit card issuers will have to inform consumers that using premium cards may mean higher fees
www.cfib.ca
SMALL BUSINESS OWNER
PST collections
WCB
Business registration
Property tax
Signage by-laws
Permits & licenses
Land use by-laws
OHS
Environment regulations
Labour code
EI Privacy ROE Food labelling
Health inspections
4. The regulatory environment
CPP StatsCan surveys
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www.cfib.ca
If I had known the burden of regulation, I may not have gone into business (% response)
Source: CFIB, Survey on Regulation and Paper Burden, 2014, n=7304
24
Not applicable/
Don't know, 19
Disagree, 48
Agree, 33
www.cfib.ca
Red Tape
Most Burdensome Provincial Regulations (% response)
25
Source: CFIB, Canada’s Red Tape Report, 2015
3
4
4
9
9
15
15
22
27
29
55
60
73
Liquor and tobacco
Food and restaurant inspections
Other
Consumer protection
Selling to government
Environment (agriculture, energy, waste and recycling)
Health permits and inspections
Other tax compliance
Financial, insurance and banking
Business registration, reporting requirements
Employment standards
HST
Workers’ compensation and occupational health and safety
www.cfib.ca
5. Part of a Biz Group: Exclusive Support
Call CFIB Business Resources Counsellors at:
1-888-234-2232
Members receive bilingual advice in resolving business issues and getting support in dealing
with all government departments.
No charge for CFIB members!
Call as often as you like!
www.cfib.ca
Shop Small Biz is an initiative designed to empower small business owners and to educate consumers about the important role that small
businesses play in our lives.
Sign up for free at www.shopsmallbiz.ca
www.cfib.ca
Google Ignite - complimentary networking event with CFIB and Google Canada on October 28th in Toronto
Help your business succeed online; one-on-one workshops with Google’s Certified Partners.
Great prizes to be won, including Nexus tablets and more!
Register at ignitecanada.com. Space is limited.
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