The holidays are supposed to be a time for joy, hope, and maybe even a little relaxation. But for small business owners? It’s starting to feel like someone stuck a lump of coal in their stocking (and then made them pay the carbon tax on it).
According to the latest Monthly Business Barometer® from the Canadian Federation of Independent Business (CFIB), Saskatchewan small business confidence fell to 54.2 points in December, a 4-point drop. That’s not exactly the kind of holiday dip we were hoping for.
While everyone else is decking the halls and sipping eggnog, small business owners are wrestling with everything from postal delays to skyrocketing operating costs. And the pressure’s piling up like a bunch of unshipped holiday packages.
Take the Canada Post strike, for example. Nothing says “Happy Holidays” like customers asking why their carefully chosen gifts are MIA. Small businesses rely on timely deliveries. Delays mean frustrated customers, missed sales, and higher costs, ultimately leading to lower revenues at the worst possible time.
And then there’s the federal government’s GST/HST holiday. Nice idea in theory, but in practice, it’s been about as smooth as an ice-covered sidewalk.
With just two weeks’ notice, small businesses had to scramble to figure out how to implement this tax change. In two months, they’ll have to undo it all when the holiday ends. Many owners have had to reprogram systems themselves, as nearly half (48%) of Saskatchewan small businesses are grappling with staffing shortages. This isn’t holiday cheer, it’s holiday chaos.
All these hurdles are piling onto an already heavy load. Taxes, wage pressures, and soaring insurance costs are more than enough to keep small business owners up at night. According to CFIB data, 57% of Saskatchewan businesses say insurance costs are one of their biggest headaches.
At the top of their Christmas wish lists? Relief. Specifically, the provincial government can drop the 6% PST on commercial property insurance and cut the 4% Insurance Premiums Tax. For many businesses struggling to balance their books, these savings would be a much-needed gift.
Small businesses are doing everything they can to survive into the new year, but for some, it’s starting to feel like they’ll need a Christmas miracle to get there.
It’s time for governments to step up and be good for goodness' sake! Cut insurance taxes and stop rolling out policies that make life harder for small businesses during the most wonderful (a.k.a. hectic) time of the year.
Small businesses aren’t just shops and restaurants, they’re the heart and soul of our communities. They’re the mom-and-pop shops that know your order before you even say a word, the boutiques where you find the most unique gifts, and the cafés where the coffee is hot, and the welcome is even warmer. Not to mention, these businesses keep money circulating right here in our communities, strengthening our local economies. And right now, they need your support, too.
Over half (52%) of Saskatchewan small firms say a lack of consumer demand is holding back their cash flow and stalling their growth. So, as you make your holiday shopping list, think small. Think local. It’s a small gesture that makes a big difference and helps ensure small businesses will be here next year to make our communities shine.
Brianna Solberg is CFIB’s Director of Legislative Affairs for the Prairies and Northern Canada.
