It’s a quintessential (and sometimes notorious) fact of business. Government red tape. As some Edmonton businesses and business leaders point out, the “red tape” of doing business in Edmonton, in Alberta and in Canada can be a negative or a positive.
“Small businesses are impacted by policies affecting their cost of doing business from every level of government, municipal, provincial and federal,” explains Kayode Southwood, the Canadian Federation of Independent Business (CFIB) senior policy analyst for Alberta.
“Both the federal and provincial government collect taxes through their small business tax rates, while Alberta’s municipalities continue to increase property taxes year after year.”
He references CFIB’s Business Barometer® tracking that low business optimism, driven by rising costs, has become a persistent challenge since the pandemic. Key cost pressures for Alberta’s businesses include insurance, taxes, regulatory expenses and wage costs.
“If Canada is serious about increasing productivity and boosting living standards, it’s vital that our governments let SMEs invest more in their communities. Small businesses tell us they would prioritize using tax savings to pay down their business debt, increase employee compensation and expand their business—all critical to helping Canada grow.”
Doug Griffiths, president and CEO of the Edmonton Chamber, points out that, “For Edmonton businesses, government policy shows up in very real, everyday ways. At the municipal level, property taxes remain a major concern, especially for customer-facing businesses. Slow permitting and long construction projects along commercial corridors are also hurting cash flow. When access is blocked for months and timelines keep shifting, even well-run businesses struggle.
“At the provincial level, labour shortages are the biggest barrier to growth. Businesses want to hire, but delays in credential recognition and limited workforce pipelines make it harder to fill roles quickly. Rising operating costs add to that pressure.
“At the federal level, trade uncertainty and U.S. tariffs are creating new risks for exporters and manufacturers. At the same time, complex tax rules and slow processing for immigration and business programs mean owners are spending too much time navigating systems instead of growing their business.”
Edmonton’s small and medium-sized enterprises (SMEs) are on the front line, with invaluable experience about the impact of government red tape.
Jared Durand is the CEO of Edmonton’s Canoco Energy Services, a company providing reliable, results-driven solutions for energy sector operations.
“Alberta small businesses are affected by government policies in key ways, mainly the cost of doing business, the time it takes to operate and expand and the compliance burden required to stay competitive,” Durand notes.
He explains that at the provincial level, regulations related to employment standards, workplace safety (OHS), training requirements, workers’ compensation and industry-specific rules shape how businesses hire, schedule, train and manage risk. While at the federal level, policies most often impact small businesses through taxation, payroll remittances, GST, reporting requirements and national standards, along with trade and supply chain rules that affect purchasing and cross-border work.
“From Canoco’s perspective, SMEs in Alberta face challenges related to cost pressures, administrative burden and the speed and predictability of approvals and decision-making,” he adds.
Melanie Kurtz-Gibson is the CEO of CVS Controls, an industry leader in the manufacturing of control valves and associated instrumentation.
“Government policies directly affect how manufacturers like CVS Controls operate, hire and invest. Municipal taxes and permitting influenced where we located our new facilities. Provincial regulations shape workforce and safety practices and federal policies affect costs and competitiveness,” says Kurtz-Gibson.
Shaffina Mohamed is the president of Jetco Heavy Duty Lighting, a leader in manufacturing and supplying mining, construction, agricultural and vehicle lighting and safety systems.
She says, “Government policy affects small businesses every day. Alberta SMEs are resilient and globally competitive, but we only thrive when public policy supports our ability to innovate, compete and deliver reliable products. From municipal to federal levels, policy decisions shape how quickly we can bring new technology to market, how we access contracts and how stable our supply chains remain. In many cases, the biggest barrier isn’t demand—it’s outdated systems that don’t reflect how modern businesses operate. When the systems work well, we can grow confidently. When they don’t, they create friction, cost and uncertainty.”
According to Scott Cassels, president and CEO of General Body and Equipment, a company building custom service trucks, flat decks, crane trucks and heavy-duty truck bodies, “A key impact of government on small business is the instability or uncertainty created by the politics of division that seem to have taken hold. The inability to work together on common sense solutions or compromise due to the extreme dedication to party lines or doctrines can lead to stagnation.
“Our customers are uncertain or nervous about the direction that our province and country seem to be headed and that is slowing decision-making or postponing decisions until some stability and certainty return.”
Southwood emphasizes that reducing the cost of doing business should be the number one priority for any level of government concerned about the economic wellbeing of the areas they represent.
“When asked about the most serious concerns for their business, Alberta business owners cited operational costs (71 per cent), taxes (68 per cent), energy costs (62 per cent) and trade/economic uncertainty (55 per cent).”
When it comes to government red tape, there is always room for positives.
Durand notes streamlining permitting and approvals, including clearer requirements, standardized processes across municipalities and reliable timelines are opportunities.
“SMEs would also benefit from reduced administrative burden through fewer duplicative compliance requirements and better alignment across municipal, provincial and federal reporting,” he says. “Smaller companies often don’t have large internal teams, so simplifying documentation and improving digital access to forms, reporting and project tracking directly improves efficiency. Additionally, from a growth perspective, more accessible loans, grants and tax credits with clearer eligibility and faster decisions would support long-term competitiveness.”
Kurtz-Gibson suggests, “Simplifying the application process for grants and programs with clearer eligibility, reduced administrative burden and faster decision timelines so businesses can realistically access the supports that are intended to help them grow.”
Mohamed is upbeat, constructive and to the point, saying, “Simplify innovation funding and recognize incremental, applied improvements. Expand marketing and export support so SMEs can grow internationally. Strengthen trade and tariff relief to reduce volatility and level the playing field.”
Of course, there are complex details and fine print, but CFIB’s point is simple and effectively targeted.
“The most effective way for our federal, provincial and municipal governments to foster growth is through reducing taxes,” Southwood says.
Griffiths highlights the positivity, “It’s an opportunity to reset how policy supports small and medium-sized businesses. Prime Minister Mark Carney’s recent message at Davos about competitiveness, productivity and long-term investment resonates strongly with Edmonton businesses. Growth doesn’t come from short-term fixes. It comes from stable rules, smart capital and confidence in the system. For Edmonton SMEs, managing high costs starts with predictability. Stable taxes, fewer surprise fees and simpler regulations help businesses plan, especially in an inflationary environment. When owners know what’s coming, they make better decisions and are more willing to invest.”