The share of Canadian small businesses directly affected by crime and safety issues has almost doubled in the last year, jumping from nearly a quarter (24 per cent) in 2023 to 45 per cent in 2024, finds a new report by the Canadian Federation of Independent Business (CFIB) released on Thursday.
“It’s been a nightmare on Main Street. Imagine working hard, providing jobs, contributing to the community, just to have your goods stolen, windows broken, and property vandalized. For small businesses, it’s devastating when they are hit by crime over and over again,” said Keyli Loeppky, CFIB’s director for Alberta and interprovincial affairs.
“As crime continues to rise, small businesses are being left to fend for themselves, shouldering the emotional and financial burden. It’s time for all levels of government to step up, protect our communities, and ensure that every tax dollar spent makes a tangible difference in improving safety for small businesses and the people they serve.”
Read the full Broken Windows and Broken Trust: The Impact of Rising Crime on Small Business report.
Waste and litter (e.g. drug paraphernalia, garbage, excrement), vandalism, and theft were the most common types of crime small businesses experience. Crime and safety issues take an emotional toll on small businesses as well, with over two-thirds (68 per cent) worrying about their personal safety and that of their staff and customers, explained the CFIB.
“Businesses have 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. In addition, 68 per cent of small firms do not consistently file crime-related insurance claims, with most saying they worry about driving their insurance premiums even higher, at a time when such costs are already skyrocketing,” added the national organization.
Small businesses say governments and law enforcement aren’t doing enough
The report said 54 per cent of business owners consistently file police reports, but only 33 per cent are satisfied with police response times and services. Some business owners reported that the crimes they experienced, such as theft or vandalism, were “too small” for police to take action, or that police wouldn’t come for hours or even days after they have been called in these cases.
To deal with safety concerns, 50 per cent of small businesses adjusted their ways of operating, such as shifting to appointment-only services, locking doors during business hours and/or leaving lights on overnight. Also, 67 per cent have invested in extra security measures such as surveillance cameras, window bars and security guards, said the CFIB.
“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 report co-author. “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 said 79 per cent of business owners believe their tax dollars are not being used effectively to improve community safety, while 78 per cent think that governments are failing to work together on these issues.
CFIB is recommending governments:
- Address underlying issues contributing to crime, including affordable housing, mental health and addictions.
- Improve resources for small businesses including proactive funding for increased security, crime related repairs, and guidance, prevention and response strategies for business owners and their staff.
- Strengthen collaboration between all levels of government, non-profits, community organizations, and small businesses to develop evidence-based policies and programs to address crime and safety.
- Governments should also improve safety in commercial areas and public spaces, develop an improved approach to recidivism, and support diversity among insurance firms by reducing barriers to entry.
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