The Canadian Federation of Independent Businesses (CFIB) reported that Saskatchewan is experiencing the largest drop in optimism on the business confidence index for the next 12 months. The index dropped seven points to 47.6, with small business owners facing challenges such as increased business costs. Factors such as the April 1 carbon tax increase, high insurance and fuel costs, and a persistent lack of demand have all contributed to a negative impact on confidence levels for the coming year. Taxes and regulatory costs were cited as the top cost concern for 76% of small businesses in the province, with rising insurance costs and higher tax rates also posing challenges for businesses.
The agriculture sector saw the greatest decrease in confidence, which CFIB provincial affairs director Brianna Solberg attributed to the increase in the federal carbon tax that took effect on April 1. Many businesses in the sector are unable to pass on the additional costs to their customers, leading to concerns about revenue. Cole Thorpe, founder and owner of Prairie Proud, a local business in Saskatoon, highlighted the impact of rising costs on his shop. Increased mortgage payments, grocery bills, property taxes, insurance costs, and Canadian manufacturing costs have all contributed to decreased revenue for his business, which is celebrating its 10-year anniversary this year and is currently in “survival mode.”
Thorpe emphasized the importance of reducing unnecessary costs and encouraging support for local businesses. He mentioned the need to evaluate budgets, eliminate non-essential expenses, and focus on sustaining the business during challenging times. Solberg also emphasized the importance of shopping local and supporting small businesses in the province. She noted that businesses are facing difficult decisions and urged consumers to prioritize compassion over convenience in their purchasing decisions. Both Thorpe and Solberg highlighted the challenges faced by small businesses in remaining competitive and continuing to serve their communities.
Overall, the economic outlook for small businesses in Saskatchewan is uncertain, with many owners struggling to navigate increased costs and a challenging business environment. While some sectors, like agriculture, are particularly hard hit by rising expenses and limited demand, businesses across various industries are feeling the strain. The CFIB’s report underscores the need for government support and policies that can alleviate the burden on small businesses. As entrepreneurs like Cole Thorpe work to adapt and survive in the current economic climate, the importance of community support and consumer awareness of the challenges faced by local businesses becomes increasingly vital. By choosing to shop local and prioritize compassion over convenience, individuals can play a role in helping small businesses weather the storm and emerge stronger on the other side.
