Here is brief look at small business.

1. SMALL BUSINESS – CANADA
– AUGUST 2017
PAUL YOUNG CPA, CGA
AUGUST 15, 2017

2. PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. AGENDA
• Small Business Growth
• Employment
• Sales
• Hydro Rates
• Small Business (2017 Federal Budget)
• Campgrounds

4. CFIB / STUDY
Source – TD Economics and CFIB

5. SMALL BUSINESS GROWTH
http://www.newswire.ca/news-releases/small-business-growth-hits-level-not-seen-in-almost-a-decade-cibc-capital-markets-619824653.html
While self-employment has risen noticeably slower than paid-employment since the beginning of the decade,
Canadian small- and medium-sized enterprises (SMEs) have been creating a more significant share of jobs since 2010,
finds a new report by CIBC Capital Markets.
Between 2010 and 2016, 42 per cent of new jobs were created by businesses with less than 100 employees, up from
30 per cent between 2000 and 2010.
"Beyond the threshold of five employees, there is a clear positive correlation between size and growth, with larger
firms within the SME spectrum seeing progressively stronger growth recently," says Benjamin Tal, Deputy Chief
Economist, CIBC, who co-authored the report, Canadian SMEs: Strength Beneath the Surface, with Senior Economist
Royce Mendes.
"What's more, the share of larger SMEs has risen to a level not seen in almost a decade," Mr. Tal says, noting the
trend is particularly strong west of Quebec. "Each province from Ontario to B.C. has exhibited a growth rate of more
than nine per cent in the number of companies with employees."
In 2016, more than 350,000 businesses were created and just under 300,000 exited, with the entry rate (the ratio of
business creation to total businesses) on the decline since 2004 while the exit rate has been more stable, despite the
impact of the fall in oil prices a couple of years ago.
Newswire – April 19, 2017

6. JOB GROWTH
Source – CIBC Economics
Key areas of growth
• Transport
• Real Estate

7. SMALL BUSINESS/HYDRO RATES
• http://www.iheartradio.ca/610cktb/news/notl-hydro-wants-province-to-reduce-business-electricity-rates-
1.2518920
Niagara on the Lake's hydro board wants the province to look to reduce electricity rates
for small business and farmers.
Jim Ryan, Chair of NOTL Hydro, wonders how many jobs have been lost or not created
because of Ontario's high electricity rates?
He notes, large businesses have been excluded from the 8 percent Ontario rebate given to
consumers in January and will not be given the 17 percent rate cut coming in June.
iHeart Radio – April 4, 2017

8. SMALL BUSINESS (SALES)
• Stats Canada and Scotiabank

9. NEW CANADA FREE TRADE AGREEMENT / PROVINCES
• Also similar to CETA, many provincial and territorial governments have expanded their procurement by
making approximately $4.7B of new-procurement opportunities available across Canada. Federal, provincial
and territorial governments have also agreed to work towards posting tender notices to a single-point of
access, making it easier to find procurement opportunities across the country.
• In a 2015 report, CFIB found that 31 per cent of small business owners trading goods or moving workers in or
out of their own province were frustrated with the often conflicting provincial rules and regulations they
faced. The report outlined a new approach to internal free trade, and the new CFTA seems to have taken into
account the top priorities for small business, including a mechanism to address the regulatory differences
that act as needless barriers to trade and investment within Canada.
• “It’s ridiculously frustrating for manufacturers that varying regulations force them to adapt their machinery to
produce different sized dairy creamers for different provincial jurisdictions,” explained Pohlmann. “Or that
Ontario construction workers looking for work outside the province must relearn how to avoid falling because
their ‘fall arrest’ training is not recognized in different jurisdictions.”
CFIB – April 7, 2017

10. • http://www.cfib-fcei.ca/english/article/9269-what-you-need-to-know-about-the-2017-federal-budget.html
Payroll Taxes
The biggest negative for you and your employees is a projected 3% increase in Employment
Insurance (EI) rates in 2018. The payroll budgets of every business will increase now for 6
straight years due to the EI hike in 2018 and 5 years of CPP premium hikes starting in 2019
(outside of Quebec). As a consequence of this measure, the take home pay for Canadian
workers will also drop during the same period.
Other Areas
• Electronic T4s: You will now be able to distribute T4 slips electronically to employees
Canadian Free Trade Agreement (CFTA): The government will strengthen internal trade
through the CFTA, expected to enter into force by 2017
• Several investments in skills building programs
• A new procurement initiative to support innovative entrepreneurs
• A review of measures to allow less costly transfers of businesses to family members
• Measures to make it faster and easier to employ foreign workers
FEDERAL GOVERNMENT BUDGET 2017-2018

11. CAMPGROUNDS
Source - http://www.rvbusiness.com/2017/04/canadian-campgrounds-brace-for-tax-hike-by-govt/
The CRA is re-examining campsites’ eligibility for tax breaks, specifically the small business deduction.
Some sites, once seen as service-based companies, are being reclassified as rental properties — an on-
paper move that comes with a hefty tax burden.
“The small business tax deduction gives you a combined provincial and federal tax rate of 15%,” said
Shane Devenish, executive director of the Canadian Camping and RV Council (CCRVC). “The
classification that they’re grouping some campgrounds into, it’s an investment tax rate — the same as
an apartment building or a mobile home park. That combined tax rate is anywhere between 49% and
52%.”
Devenish said four Ontario campgrounds have lost their small business designation to date, a number
he expects to rise as agency audits continue. It’s a touchy subject in the industry. Some campsites that
have lost their small business designation are afraid to speak up.
“They don’t want their business impacted. They don’t want their campers to know, because they might
fear they’ll go out of business,” he said, adding the uncertainty might shake consumer confidence and
jeopardize summer bookings.
Campgrounds are no longer treated as
Small Business, but as investment
property. Tax rate goes from 15% to 49 to
52% range

12. SMALL BUSINESS / ECOMMERCE
• http://www.huffingtonpost.ca/cameron-schmidt/canadian-smb-online_b_10282950.html
In Canada, less than 20 per cent of small and medium businesses
(SMBs) have an online retail presence. The reality is that many
SMBs are so busy working to keep their businesses running that
they have only ever given a brief thought to going online. It's a
"nice-to-have," but not a "must-have." However, with an economy
at home that is soft, and as borders disappear and tech-savvy
millennials become more influential, online retail is quickly
becoming a business necessity. Industry experts project global e-
commerce sales will surpass $3.5 trillion within the next five years.
Now is the time to take advantage of technology to reach new
customers.
Cameron Schmidt – GM – PayPal – June 6, 2016

13. INCOME SPRINKLING
• http://bdoreinvestor.ca/2017/07/25/corporate-tax-planning-proposal-attack-family-businesses-and-investors/

14. MINIMUM WAGE/ONTARIO
• https://www.tbnewswatch.com/local-news/chamber-concerned-about-frightening-impact-of-minimum-wage-hike-695730