Edmonton Claims to Be Business-Friendly—But Is It Really? Here’s the Truth.

Jason BALE for Ward Karhiio

The City of Edmonton likes to claim they are business-friendly, but are they really? I do not believe so and I’ll tell you why. 

This election cycle, you’re going to hear a lot of candidates talking about taxes and electing business-friendly candidates. I’ll dig into taxes further in a future blog, but the bottom line is everyone knows taxes are too high. Unfortunately, taxes are only 1 of the 1,000 paper cuts that are killing businesses. If we could wave a magic wand and eliminate 100% of the tax burden for businesses without reducing services or shifting the burden entirely to homeowners, we still wouldn’t be business-friendly because of other government policies in place. Those are the issues I would like to look at resolving. The problem, as I see it, is that our City Council has historically acted in a manner that inhibits opportunities for businesses and entrepreneurs. 

It’s hard enough to raise sufficient working capital to operate a business. If you can get past that, then you have to worry about the costs of operating the business. Governments across Canada at all levels have recognized this. Though there are many grants and loans that entrepreneurs can apply for, does it make sense for the government to issue a grant or loan, so that you can spend that money on permits or other items that just send the money back to the government? If these fees are that big of a problem, then perhaps we need to look at reducing the fees and increasing working capital for starting up a business. 

We also need to question if governments should have the right to tell business owners and entrepreneurs what kind of business they can start and run. For example, one cannot get a grant or loan for the inventory to start or buy a liquor store but, for other sectors, such as a department store, one can get a loan for the inventory. So here, the government is limiting options for potential business owners instead of allowing businesses to open based on the needs of the community. Using the same examples of a department store and a liquor store, the City of Edmonton has zoning requirements that liquor stores must be at least 500 metres apart (except in the Arena District), while department stores can be right next to each other. This is just one example where all levels of government are letting stigma impede opportunity. From a municipal perspective, we can only address what’s in our jurisdiction, and advocate to other levels of government to address theirs. Now I’m not saying we should remove separation distances between liquor stores, or even encourage more liquor stores in our communities, but I am saying the next Council should review these practices that impede opportunity and keep an open mind. In some cases, we’re going to find barriers that make sense. In other cases, the barriers will be arbitrary. Either way, we need a Council that will take a serious look into City policies and whether or not those policies support an opportunity-friendly future.

I look back at the economy of early 2000’s Alberta. I remember McDonald’s paying twice the minimum wage to entice people to work for them. I remember watching a homeless youth walk into a business with a handwritten resume and get hired on the spot. It was an employee’s market and businesses had to entice employees to work for them. As a result, people had more disposable income which got put back into the local economy. Not a lot of people remember, but tax increases then were about as high as they are now. The average tax increase per year from 2001 to 2009 was 5.34%. The current Council has an average tax increase of 5.47% (2022-2025). The difference is that back then, disposable income was much higher so these taxes were easier to absorb. Back then, Edmonton City Council (which included Mayor Sohi) were asking questions about the future they wanted to create. It didn't happen overnight, but Council started to put policies in place to shape the direction of today. Over the years, the faces on Council have changed but the direction remained the same. When I compare the two economies side by side, I have a hard time believing that things are better today. 

So how do we solve it? 

Clearly, we need a new direction on Council, but that direction cannot be “backwards”. While I did point to early 2000’s Alberta, I recognize that times are different. We can’t simply undo everything since then and go back. While I disagree with a lot of the policies Councils have made over the years, they’re not all bad. The next Council will need to set the tone for future Councils to follow. The way I see us doing that is by listening to the people to understand their perspectives and finding out how we can create the opportunities Edmontonians deserve.

If you’ve ever thought about starting a business, I’d like to hear from you. 

If you’ve ever started a business, I’d like to hear from you. 

If you trained for a field of work, but cannot find a job in that field, I’d like to hear from you.

What’s in YOUR way and how can I help?