A day dedicated to small and medium businesses

Since a proposal was adopted in the National Assembly on the subject on June 9, June 27 in Quebec is now SME Day.

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A moment meant to denounce and eliminate barriers to its growth, according to the Canadian Federation of Independent Business (CFIB).

“Small businesses drive the economy in all regions, without exception. In Quebec, 53% of businesses have fewer than five employees and 86% have fewer than 20 […]; Important issues remain and affect the deployment of its full potential. The Quebec government must do more for these SMEs,” said François Vincent, Vice President of Quebec at CFIB.

In Quebec, small businesses must pay up to 259% more in taxes than other SMEs, just because they are so small, according to the CFIB. The county is the only one in the state that does not provide access to a reduced small business tax rate for those working in the construction and service sectors if they do not pay the 5,500 hours (roughly three full-time employees).

So if they go over this limit, their tax rate is the same as the large corporate tax rate, which is a 259% higher tax rate than a competitor that meets this requirement. For a profit of $50,000, the surplus payable is $4,150, and for a profit of $150,000, the surplus is $12,450.

The CFIB is also inviting leaders of Quebec’s SMEs to sign a petition that will be submitted to Eric Girard, Quebec’s Minister of Finance.

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Labor shortage again and again

More so with the pandemic, labor shortages remain a major obstacle to the growth of small and medium-sized businesses in Quebec, according to a survey conducted among CFIB members. This problem is more pressing for companies with 5 to 50 employees.

Currently, labor shortages are slowing down SMEs and slowing down across Quebec. We must listen to them to overcome this challenge and act now. How? By lowering payroll taxes to give them the tools to be better hired, by improving communication in programs so they can use them, and by increasing the pool of potential candidates, particularly by focusing on immigration,” adds Mr. Vincent.

A third of small business owners in Canada earn less than $33,000 a year.

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