Half of Canadian small businesses have dealt with crime in the past year: CFIB

The portion of small businesses across Canada directly affected by crime has almost doubled in the past year, says the Canadian Federation of Independent Business (CFIB).

According to a report issued Thursday, 45 per cent of small businesses say they have been hurt by crime in the past year, compared to 25 per cent in 2023.

“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,” said Keyli Loeppky, CFIB’s director for Alberta and interprovincial affairs.

“For small businesses, it’s devastating when they are hit by crime over and over again.”

The federation says business owners have been dealing with everything from waste and litter to people walking in and then walking out with goods and merchandise. Many also report vandals damaging windows and other areas.

The CFIB says businesses have spent an average of $5,000 on crime-related expenses in the past three years. This includes the cost of replacing stolen inventory and repairing vandalism.

As well, almost 70 per cent of small businesses say they don’t always file crime-related insurance claims, saying they don’t want the claims to push their premiums higher.

Half of those businesses surveyed say they have adjusted their ways of operating in response to crime. Some businesses have shifted to appointment-only services, locking their doors during business hours and leaving lights on overnight.

More than two-thirds of small businesses have invested in extra security including surveillance cameras, bars on windows, and security guards.

“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 report co-author SeoRhin Yoo, CFIB’s senior policy analyst.

“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 says those surveyed report feeling a strong emotional toll from crime. As well, many small businesses say they don’t call police anymore to report crime, due to a sense that there is little authorities can do.

The group says the government needs to address the issues surrounding crime, such as mental health and addictions issues, and work with non-profits and other groups to come up with initiatives that will actually make a difference.

Crime hitting close to home

Vancouver businesses are not immune, and many owners report having to deal with the impacts of crime.

Early Sunday morning, AJ’s Brooklyn Pizza Joint in Vancouver’s Mount Pleasant neighbourhood had its windows smashed by a brick, and some of its property was stolen.

“This was a beautiful door with an AJ’s logo. Not anymore,” said owner AJ Caridi.

“This brick is responsible for destroying my door.”

Caridi says the crime will cost him $5,000.

“Given the last six years of the restaurant business, [$5,000] is a massive undertaking,” he said.

The Mount Pleasant Business Improvement Area says the province has offered one-time vandalism grants, which have been widely used in the community, but repeated incidents are becoming overwhelming for some business owners.

“We are getting more and more reports of incidents that are happening, and I can feel the struggle,” said Mount Pleasant BIA executive director Neil Wyles.

“We are seeing people give up and fold up shop because they’ve had enough.”

With files from Angela Bower and Dean Recksiedler.