The survey, released Oct. 24, found a significant jump in the percentage of small business owners reporting that they had been directly affected by a crime or safety issue — from 24 per cent in 2023 to 45 per cent in 2024. Small businesses in Western Canada reported higher levels of direct impact.
The report, titled “Broken Windows & Broken Trust: The Impact of Rising Crime on Small Business,” was based on a survey of 1,666 small-business owners across Canada and was conducted from July 25 to Sept. 6.
Respondents said the most common incidents they faced were theft and/or shoplifting (60 per cent), vandalism and/or breaking and entering (63 per cent), and having to clean up waste and litter (63 per cent), including drug paraphernalia, garbage and excrement.
More than two-thirds (68 per cent) of those surveyed said being personally impacted by a criminal or safety event left them worrying about their personal safety and that of their staff and customers. And while more than half (54 per cent) of the business owners filed police reports, only 33 per cent said they were satisfied with police response times and services.
Some business owners said that police didn’t come for hours or even days after they called to report incidents, and they concluded that cases of theft or vandalism were "too small" for police to take action.
Business owners surveyed said they had spent a median of $5,000 on crime-related expenses in the last three years, such as replacing stolen inventory or equipment and vandalism repairs. Sixty-eight per cent said they do not consistently file crime-related insurance claims over concerns that their insurance premiums will go even higher.
Sixty-seven per cent of those questioned said they have also invested in extra security measures such as surveillance cameras, window bars and security guards. Fully half (50 per cent) said they have adjusted the way they operate to address safety concerns, including shifting to appointment-only services or locking doors during business hours.
"Some security measures, while helpful and necessary, may come at a steep price, deter customer foot traffic and, as a result, lead to lower revenues," said SeoRhin Yoo, CFIB's senior policy analyst and the report’s co-author in an Oct. 24 news release. "Many businesses are already operating on thin profit margins, so just one crime incident could be make or break for a small business owner."
The CFIB report urges all levels of government to adopt several recommendations to address the safety concerns of small business owners, including:
- better addressing affordable housing, mental health and addictions, and other underlying issues contributing to crime;
- improving resources for small businesses, including proactive funding for increased security and crime-related repairs;
- improving safety in commercial areas and public spaces;
- developing an improved approach to recidivism;
- supporting diversity among insurance firms by reducing barriers to entry.
According to Statistics Canada, the Non-violent Crime Severity Index (CSI), which includes property offences, rose three per cent year over year in 2023, following a five per cent increase in 2022. Shoplifting involving items valued at $5,000 or under increased by 18 per cent in 2023 over 2022, but breaking and entering declined by five per cent over the same period to 326 incidents per 100,000 population.
“As of 2024, a significant number of Canadian small business owners (62 per cent) believe that their provincial governments should follow British Columbia’s lead by introducing a security rebate program to help cover costs associated with crime and safety,” notes the CFIB report.
“It is crucial for stakeholders, including government authorities and law enforcement agencies, to address community safety concerns and collaborate with small-business owners in implementing effective crime prevention strategies,” it concludes.
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