Measuring the Costs of Red Tape for Small Business—November 2007

Note to readers: Survey of Regulatory Compliance Costs Corrections

Corrections have been made to estimates from the Survey of Regulatory Compliance Costs for the reference year 2005. All statistical tables produced by Statistics Canada from the earlier database have been corrected and are now available from Statistics Canada.

These new data correct an error in calculating time conversion involving information from 2005 respondents who reported time using the 'person-days per year' option. These data were processed using a conversion factor of 24 hours in a day instead of an eight-hour day.

These corrections will impact the figures presented in the November 2007 Survey briefing: Measuring the Costs of Red Tape for Small Business. Corrected data have not been incorporated into the briefing. Key conclusions remain essentially the same, but the time and cost data as it pertains to most regulations will have decreased. Estimates of total compliance costs, for instance, were corrected downwards from $1.5 billion to $1.1 billion. Estimates of average costs per business were corrected downwards from $2,839 to $2,008.

All 2005 figures presented in the 2010 survey briefings will reflect the corrected numbers.

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This paper focuses on the cost of regulatory compliance to small business. The briefing provides estimates on the average internal and average external cost of compliance for 12 key federal, provincial, and municipal regulatory requirements. The results are further broken down by size of establishment – number of employees – to facilitate comparisons in compliance costs estimates across size categories.

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