The regulations cost Canadian small and medium-sized businesses nearly $ 39 billion in 2020, whose costs have been increased by the COVID-19 pandemic, according to a report by the Canadian Federation of Independent Business (CFIB).
The CFIB report notes that, to comply with the regulations, companies with less than five employees spend more than $ 7,000 per year per employee, while the same procedure costs only $ 1,237 for an SME with less than 100 employees. .
The survey published as part of the 12e This edition of Paperwork Awareness Week aims to encourage governments to reduce the administrative and regulatory burden imposed on SMEs.
“COVID-19 is a big blow to our small businesses and to our economy. So, reducing paperwork, in these very difficult times, is giving entrepreneurs time to take more care of the challenges of their business and ensure the very survival of their project ”, said Monday, by press release, François Vincent, Quebec vice-president at the CFIB.
To alleviate the regulatory burden, CFIB is proposing, among other things, to simplify existing regulations and improve customer service. Some 81% of business owners believe that improving online services would significantly reduce compliance costs.
According to the CFIB survey, about two-thirds of small business owners (63%) would not advise their children to go into business because of red tape, a figure up 15% since 2017.