Alberta small business nation’s least optimistic

Small business owners in Alberta continue to have the gloomiest outlook in the country, according to a monthly index composed by the Canadian Federation of Independent Business.

The non-profit’s business barometer shows small business confidence across the province fell by 7.6 points in January, following an 8.7-point drop in December. This brings Alberta down to 37.5 points, its weakest result since late 2016.

The index is measured on a scale of 0 to 100, with scores between 65 and 75 usually indicating that the economy is growing at its potential and a majority of owners expect their business to be stronger in the next year.

For January, P.E.I. scored highest with an index of 69.2, followed by Quebec (63.5), Nova Scotia (63.1), New Brunswick (61.3), Ontario (60.4), British Columbia (57.3), Manitoba (56.3), Saskatchewan (55.2), Newfoundland & Labrador (47.9), and Alberta (37.5).

The findings are based on 930 responses received by Jan. 20, collected from a stratified random sample of CFIB members to a controlled-access web survey. Findings are statistically accurate to within 3.2 percentage points, 19 times in 20.

Just 15 per cent of Alberta entrepreneurs described the state of their business as “good” in January, down six points from last month, according to the CFIB.

About 55 per cent characterized it as “satisfactory,” up five points, while 31 per cent indicated the state of their business was “bad.”

More than three-quarters of Alberta business owners cited taxes and regulatory expenses as some of their biggest cost constraints, while 69 per cent identified fuel and energy costs, followed by 64 per cent who pointed to wage costs.

“Considering small business confidence is typically a harbinger of what is happening more broadly in the economy, it is especially worrisome,” said Richard Truscott, CFIB vice-president for the Alberta and B.C. regions.

“Weak market demand coupled with rising taxes, higher energy costs, the $15 minimum wage, and a long list of new prescriptive occupational and employment regulations are weighing heavily on Alberta’s small business, and may signal more difficult times ahead for our province.”

About 35 per cent of local business owners said they expected to cut back on full-time staff over the next three to four months, up six points from December. Just nine per cent of Alberta entrepreneurs expect to hire new employees.