CFIB Reports Canadian Small Businesses Lose 256 Hours Annually to Red Tape

A recent report from the Canadian Federation of Independent Business (CFIB) reveals that small businesses in Canada spent 735 hours last year on regulatory compliance, with over one-third of that time—256 hours—lost to bureaucratic red tape that could potentially be eliminated without jeopardizing public health and safety. This represents a 35% increase in time spent on red tape since 2020. The total cost of regulatory compliance for small businesses in 2024 is estimated at $51.5 billion, a significant rise from previous years, with $17.9 billion attributed to red tape alone. Small businesses bear a disproportionate burden, spending more than five times the amount per employee on compliance compared to larger firms. The CFIB suggests that simplifying regulations and improving government services could enhance productivity for small businesses. Stakeholders emphasize the need for government action to alleviate these burdens to foster better economic growth and competitiveness.