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

Just Posted

Hope’s only public wheelchair-accessible vehicle stolen

More than 300 clients left in lurch after volunteer group discovers van stolen

Two hiking families team up to extinguish fire in Manning Park backcountry

Children and their parents worked for three hours to ensure safety of the popular hiking region

Hope’s Wheeled Wild Women hit the road for cancer research

Group of friends ready for the 200-km bike trek that ends in Hope

Kilby painting festival wraps up with award-winning art

Kilby Historic Site hosted 26 painters over the three day festival

Comedy, chicken poop and dancing at Lytton Festival

This year’s festival will honour longtime supporter Shirley James

Disney Plus to launch in Canada in November

Analysts say latest streaming service may escalate cord cutting

B.C. manhunt suspects left cellphone video before they died: family

Family member says Kam McLeod, Bryer Schmegelsky recorded final wishes

Okanagan bus driver assaulted for asking patron not to smoke

59-year-old in hospital with non-life threatening injuries

Mouse infestation hit Langley hospital’s kitchens

Droppings and urine were found by Fraser Health inspectors in the spring

Son of slain former Hells Angel is one of two men sentenced for crime spree

Pair’s 2017 series of Lower Mainland robberies stretched from Surrey to Mission

‘Person of interest’ identified after suspicious meat left in North Delta park

Piles of meat have been dumped near the 63rd Avenue trail entrance four times in the last 30 days

B.C. sets rules for ride hailing, same minimum fee as taxis

Larger operating areas seen as threat by cab companies

B.C. mom mourns 14-year-old son whose fatal overdose was posted online

Chantell Griffiths misses the son she hadn’t seen much in recent years

Most Read