Almost one in two small businesses reported crime or safety-related issues in 2024, marking a sharp increase from the previous year.
A report from the Canadian Federation of Independent Business reveals that 45% of small businesses faced incidents like vandalism, theft, and drug paraphernalia which affected not only their operations but also the mental well-being of employers and workers.
The CFIB reported that the incidents are impacting business finances and safety, with owners incurring a median cost of $5,000 over the past three years for repairs and crime prevention.
However, 68% of business owners avoid filing insurance claims, fearing hikes in already steep premiums. Additionally, only 33% of businesses reported being happy with police responses to reported crimes, and many feel their concerns are falling on deaf ears, as minor incidents are often deemed too small for urgent attention.
“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.
“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 notes that businesses have adapted their operations in response to crime. About 50% have implemented safety measures that alter customer access, like locking doors or requiring appointments, and 67% resorted to spending money on more security.
However, these measures have also made it more challenging for customers to access stores, potentially reducing foot traffic and revenue.
The CFIB has called on governments to act, urging increased funding for security initiatives and efforts to address root causes such as affordable housing, mental health, and addiction support.
Additionally, 79% of business owners want more transparency in how public safety funds are allocated, expressing frustration that their tax dollars are not leading to improved community safety.
The report calls this surge in crime a “nightmare on Main Street,” pointing to the emotional toll on business owners and employees alike.
