The average small business owner works 54 hours a week, according to a recent report by the Canadian Federation of Independent Business (CFIB). .Owners in areas with labour shortages worked 59 hours per week on average. The yardstick of an eight-hour workday makes this like an eight-day workweek..Twenty hours, or 34% of this time, was spent filling in for work they would hire out for if they could..“This is a lot of time that business owners could spend on other priorities such as growing their business or looking into government programs. But the impacts can also be felt outside of work. Many owners who work more hours don’t have time for family and friends, and it can affect their mental health and wellbeing,” said Laure-Anna Bomal, CFIB economist and co-author of the report released April 24. .The number of small businesses impacted by labour shortages increased from 55% in November 2021 to 59% in September 2022, according to CFIB’s research. All provinces report more than half of businesses are impacted, with Quebec (66%), Saskatchewan (62%) and Manitoba (62%) being the most affected by staffing challenges.. Help neededHelp needed .Having no one to hire forces entrepreneurs to do more themselves. Among businesses experiencing labour shortages, almost three-quarters (73%) reported the owners had to work more hours and 54% reported their employees had to work more hours to make up for being short-staffed. Nearly half affected businesses also had to turn down sales and contracts (48%) or decrease their service offerings (47%)..“Instead of being captains who keep their ships on course, short-staffed business owners are having to paddle just to stay afloat,” added François Vincent, CFIB’s vice-president. .“Long hours and overtime can also negatively affect employees, adding to a low morale in the workplace.”.Among the sectors, the difference is even more striking. The share of affected owners working more hours is highest in the hospitality (84%) and agriculture (82%) sectors. The retail sector is close behind at 78%, as is arts, recreation, and information..By province, PEI (79%) had the highest percentage of owners who reported working more hours to handle the shortage, followed by Alberta (76%), Manitoba (75%), and B.C. (75%)..Saskatchewan (69%) and Newfoundland and Labrador (55%) business owners were the least likely to work more hours due to labour shortages..“With Canada’s aging population, the shortages will get worse if our labour market approach does not change. There isn’t one-size-fits-all solution, but governments can help by implementing targeted measures such as reducing the tax burden that will allow them to invest in employee’s compensation, training, and automation,” Vincent said..“Additionally, streamlining immigration processes is key to finding the talent that small businesses can’t find right now. Finally, red tape reduction is a strategic way for governments to act to give back time to our entrepreneurs.”.The CFIB warned such predominantly long work weeks for business owners may be a new phenomenon. In 2010, Statistics Canada found more than 40% of business owners aged 25 to 64 worked 50 or more hours per week. In 2016, the Alternative Board estimated business owners worked an average of 49.4 hours per week.
