Crime affecting more small businesses in Alberta

By Al Beeber - Lethbridge Herald on October 25, 2024.

Herald photo by Al Beeber A sign on a downtown business asks customers to knock to gain entry.

LETHBRIDGE HERALDabeeber@lethbridgeherald.com

The Canadian Federation of Independent business says the number of small businesses directly affected by crime in Alberta has nearly doubled in the last year.

A report issued by the CFIB on Thursday said the percentage has risen from 24 per cent in 2023 to 54 per cent in 2024.

“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. For small businesses, it’s devastating when they are hit by crime over and over again,” said SeoRhin Yoo, CFIB senior policy analyst and report co-author.

The report says that vandalism, theft, and waste and litter including drug paraphernalia, garbage, excrement were the most common types of crime small businesses in Alberta experience.

Crime and safety issues are also having an emotional toll on small businesses with 72 per cent worrying about their own safety and safety ofstaff and customers.

The report states that businesses in this province have spent a median of $5,750 on crime-related expenses in the last three years.

Those expenses include replacement of stolen inventory or equipment and repairs because of vandalism. Seventy-one of Alberta’s small firms don’t consistently file crime-related insurance claims, says the report, mostly because they worry about their their insurance premiums rising even higher.

Fifty three per cent of Alberta business owners consistently file police reports, but only 29 per cent are satisfied with police response times and services, says the report.

“Some business owners reported that the crimes they experienced, such as theft or vandalism, were too small for police to act, or that police wouldn’t come for hours or even days after they have been called in these cases,” it notes.

To address safety, more than half of small businesses have adjusted the way they operate including shifting to appointment-only services, locking doors during business hours and/or leaving lights on overnight.The report states an additional 71 per cent have invested in extra security measures such as surveillance cameras, window bars 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 Yoo in the report.

“Many businesses are already operating on thin profit margins, so just one crime incident could be make-or-break-for a small business owner.”

A majority – 83 per cent – of Alberta business owners “don’t believe their tax dollars are being used effectively to improve community safety, while 84 per cent think that governments are failing to work together on these issue,” says the report.

CFIB is recommending governments address concerns by taking several steps including :

• Address underlying issues contributing to crime, including affordable housing, mental health and addictions.

• Improve resources for small businesses including proactive funding for increased security, crime related repairs, and guidance, prevention and response strategies for business owners and their staff.

• Strengthen collaboration between all levels of government, non-profits, community organizations, and small businesses to develop evidence-based policies and programs to address crime and safety.

“Governments should also improve safety in commercial areas and public spaces, develop an improved approach to recidivism, and support diversity among insurance firms by reducing barriers to entry,” says the report.

“As crime continues to rise, small businesses are being left to fend for themselves, shouldering the emotional and financial burden,” Yoo concluded. “It’s time for all levels of government to step up, protect our communities, and ensure that every tax dollar spent makes a tangible difference in improving safety for small businesses and the people they serve.”