Supporting small businesses this October and beyond

South Osborne

October is Small Business Month in Canada, and we are fortunate in Winnipeg to have as vibrant and diverse a community of entrepreneurs to celebrate as anywhere else in the federation.

South Osborne in particular is well-established as a great neighbourhood to set up shop. Retailers and restauranteurs share a lively corridor with coffee shops, laundromat, pub, theatre/venue, and bowling alley. Still within walking distance, people in the community can find a physiotherapist, accountant, and tax specialist.

These businesses have helped make South Osborne one of the most desirable places in Winnipeg to live. They also contribute to economic activity in the neighbourhood, as small business do all across the country.

But just how much they contribute is noteworthy.

Roughly 98 per cent of registered companies in Canada are classified as small businesses. Together they employ more than 10 million people – or about 64 per cent of the Canadian workforce in the private sector – and contribute more than half of Canada’s GDP.

Small Business Month is a time to celebrate these contributions. It is also a time when organizations host events, and when government generally announces new supports. These are intended to help businesses survive and grow.

But the current environment is challenging.

2,005 small businesses in Manitoba missed at least one payment deadline between April and June, according to the credit bureau, and missed payments increased by 13 per cent overall across Canada earlier this year.

Another concerning trend is that operators are reluctant to make insurance claims in cases of vandalism or theft.

According to a TD Insurance poll, less than half of small-business owners in the prairies are willing to file an insurance claim in an emergency. Afraid that their premiums will rise above a level they can readily afford, many said they’d turned to bank loans, or to selling assets.

And of course, in the present political climate, there is another factor.

This August, the U.S. “de minimus” exemption, which allowed shipments under $800 to cross the U.S. border duty and tax free, was eliminated. It was probably only a matter of time.

In Canada, the exemption is much lower, only $150. GST and PST still apply to all shipments coming in to Canada. Above $150, duty is also added. For businesses who bring in goods from outside — and especially for those that can’t benefit from economies of scale — this can be prohibitive.

Suppose a small clothing retailer, for example, decides to instead produce some of its own garments. This should be desirable; manufacturing in-house might stimulate hiring and overall growth.

But in addition to start up costs, their insurance premiums are likely to increase — and if the results of TD Insurance’s poll are to be believed, about half of small businesses are already stretched to the limit.

In October 2024, the federal government announced that it had reached an agreement with financial institutions to reduce the processing fees on credit card transactions.

Unless it is already on the government’s radar, it is probably too late to expect that an agreement can similarly be reached with insurance providers.

But it might be a good idea for 2026 that can help ensure that there is something to celebrate every October for many years to come.