A day dedicated to small and medium-sized businesses

Since a motion adopted in the National Assembly on the subject on June 9, June 27 in Quebec is now Micro-, Small and Medium-sized Enterprises Day.

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A moment that aims to denounce and potentially eliminate the barriers that hinder their growth, according to the Canadian Federation of Independent Business (CFIB).

“Small business drives the economy of 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 their full potential. The Quebec government must do more for these SMEs, ”shared François Vincent, Quebec vice-president for the CFIB.

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

So, if they fall below this threshold, their tax rate is the same as that of large companies, that is, a tax rate that is 259% higher than a competitor who meets this condition. For a profit of $ 50,000, the surplus payable is $ 4,150, for a profit of $ 150,000, the surplus amounts to $ 12,450.

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

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The labor shortage, again and again

Even more with the pandemic, the labor shortage remains a major obstacle to the growth of Quebec SMEs, according to a survey conducted among CFIB members. This issue is even more pressing for companies with 5 to 50 employees.

“Currently, the labor shortage is slowing down SMEs and slowing down all of Quebec. We must listen to them to overcome this challenge and act now. How? ‘Or’ What? By reducing payroll taxes to give them the tools to better recruit, by improving communication on programs so that they can use them, and by increasing the pool of potential candidates, in particular by focusing on immigration ”, adds Mr. Vincent.

One-third of small business owners in Canada earn less than $ 33,000 per year.