Richard Truscott is the B.C. and Alberta vice-president at the Canadian Federation of Independent Business. (Richard Truscott)

COLUMN: Are B.C. communities in boom?

CFIB’s Richard Truscott on how B.C. municipalities fared on annual report on small business sentiment

There are certain communities in B.C. where it’s easier than in others to grow a healthy garden or colourful flowers each spring.

Similarly, there are communities in B.C. where it’s easier to start and grow a small business. Perhaps there are local advantages, like proximity to markets or pools of displaced workers looking to get on a new path by starting their own business. Or perhaps the municipal government has a particularly strong focus on supporting local businesses through bylaws and regulations.

READ MORE: Smaller companies worry they can’t pass carbon tax costs to customers, poll says

Whatever the reason, it’s important to look at how municipalities across B.C. are faring when it comes to creating the conditions in which local business can be successful.

Of course, there is no one single factor that makes a community more entrepreneurial than another; and no doubt, the influences can ebb and flow over time. But one starting point for looking at these factors and how they interact is the annual Entrepreneurial Communities report from the Canadian Federation of Independent Business.

The report assesses Canada’s 125 largest communities and compares them on 13 metrics of self-employment demographics, small business sentiment, and local tax and regulatory policy. The top cities this year are Winkler, Man., Grande Prairie, Alta., and Victoriaville, Que. The top B.C. location was Squamish in 10th spot.

A relatively strong economy in British Columbia, as reflected in healthy business incomes growth, along with expansion plans and optimism levels, pushed many of the province’s municipalities into the upper echelons of the list.

In the rankings of the 125 cities across Canada, B.C.’s 20 municipalities landed as follows: Squamish (10), Salmon Arm (12), Fort St. John (15), Kelowna (16), Penticton (26), Chilliwack (34), Kamloops (38), Campbell River (44), Parksville and Vernon (tied at 51), Vancouver (56), Victoria (66), Duncan (72), Nanaimo (74), Port Alberni (81), Prince George (82), Abbotsford-Mission (84), Cranbrook (91), Quesnel (100), and Courtenay (123).

Overall, the big cities like Vancouver, Calgary, Toronto, and Montreal did not fare well. A big reason is the tax disparity between what residents pay to support municipal services versus what local businesses pay.

As municipalities grow, it has been the path of least resistance to stick more and more of the property tax bill onto the backs of local entrepreneurs to pay for the rising cost of local governments. This has put many small businesses in a big squeeze.

Of course, municipal governments do not control the economy. But they do have control over local tax policy as well as bylaws and regulations. Rising property taxes are a particularly serious problem for many smaller firms. Since local businesses typically operate in competitive markets, and survive on razor-thin profit margins, they genuinely struggle to pay rapidly rising property taxes.

If local businesses consumed more municipal services than residents, then maybe this tax imbalance could be justified.

But they don’t. Research shows that residents typically receive more than two dollars in municipal services for every dollar of property tax they pay. For local businesses, it’s the exact opposite: They often receive one dollar of service for every two dollars (or more) in property tax paid. And in many cases, they have to pay extra for things like garbage collection and recycling.

B.C.’s economy is doing relatively well, but still faces major challenges, from low productivity growth and lagging capital investment to stagnant wage growth and downsizing by big businesses. It is unfortunate more focus has not been put on how local governments can better support local business and keep our country strong. Those municipal governments that do focus on better policies to support local small businesses will not only help contribute to the success of the local economy, but also create communities that boom.

Richard Truscott is the B.C. and Alberta vice-president at the Canadian Federation of Independent Business

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

LETTER TO THE EDITOR: Council’s special-interest projects boosting property taxes too high

City council should keep in mind its core services when budgeting, says letter writer

Colour and culture being painted onto plaza stairs in downtown Nanaimo

City commissions Humanity in Art muralists for ‘artistic intervention’ project

B.C. Supreme Court dismisses claim against Island Corridor Foundation

Snaw-Naw-As (Nanoose) First Nation was seeking return of reserve land as railway sits unused

Nanaimo’s newest skatepark now open for use in Harewood

Harewood Centennial Park amenity opens on schedule

Column: Sustainable society based on foundational services

Services tied to local populations puts sustainability above growth, says columnist

All community COVID-19 outbreaks declared over in B.C.

Abbotsford manufacturer cleared by Dr. Bonnie Henry

B.C. First Nations vow to keep fighting after Trans Mountain pipeline appeal denied

Squamish Nation, Tsleil-Waututh Nation and Coldwater Indian Band made the application

‘Queue jumpers’ not welcome in B.C. as COVID-19 U.S. cases rise: Horgan

Premier Horgan said he’s heard concerns that Americans have stopped at Vancouver hotels instead of heading to their destination

US officer resigns after photos, connected to death of black man in 2019, surface

Elijah McClain died, last summer, after police placed him in a chokehold

Black worker files discrimination complaint against Facebook

Oscar Veneszee, Jr. has worked as an operations program manager at Facebook since 2017

Nestle Canada selling bottled water business to local family-owned company

The Pure Life bottled water business is being sold to Ice River Springs

Major B.C. salmon farm tests new containment system to curb sea lice infestations

System “essentially eliminates” contact between wild and farmed fish stocks, says Cermaq

Major B.C. salmon farm tests new containment system to curb sea lice infestations

System “essentially eliminates” contact between wild and farmed fish stocks, says Cermaq

Most Read