21 May Business is Essential
I believe that society is only beginning to realize the critical importance of commerce and businesses of all sizes no matter where you are in the world. With many businesses impacted by a pandemic, it has allowed everyone to see the essential role these businesses play in our daily lives.
Businesses are much more than corporate entities trying to make a profit. Business is about interactions between bosses, managers, staff, clients and extending beyond strictly business networks to families and friends. Business without relationships is just an empty shell because it’s really all about the people involved. We are discovering, as we adjust to the new normal, that businesses and their people are the engines that drives our entire economy, creates our lifestyles, keep us warm, fed, clothed. Where do you think our governments get their money? From businesses and the people they employ.
Currently, this money is being used to subsidize incomes for those displaced by a pandemic and to continue to stimulate our economy. None of this could happen without a strong economy to begin with. It is important for us to realize the impact of business and innovation in our society – the primary factor why many of us only have 1st world problems! Without this foundation of financial stability which funds infrastructure, military, and provide a social security net which and consistent work and income, society takes a turn, crime rates rise and people suffer.
Only one year ago, the Canadian federal government changed small business tax laws which effectively penalized business for being successful. Our leaders compared business owner’s income to that of a traditional employee. This simply not a fair statement! Hear me out, this neglects the fact that business owners are managing extra risk factors and securing employment and income for many others in the process. They also support the government acting as a tax collector and generating revenue to fund their programs. Tax laws that penalize success are actually counterintuitive for the success of the country and reduce the incentive for business to grow their investments. We need progressive tax laws that encourage business and make the reward worth the risk.
The next time you make an assumption or a judgement about a successful business owner, I encourage you to think again. There is probably much more work being put in behind the scenes that you do not see. Being an entrepreneur is about risk, sacrifice, stress, and worry. Any level of achievement requires courage to risk what most people will not, determination to ensure the investment and energy is worth the reward, and a positive attitude in the face of adversity. Without the upside potential, who would risk and sacrifice so much?
It is important to remember the effects of this pandemic: business closures, no revenue for months, and uncertainty for many entrepreneurs. Business owners invest everything they have into their business and failure means bankruptcy in most cases – this is obviously devastating financial but also mentally. For most business owners, their business is their identity, their life’s work, their stability, and retirement plan all rolled into one! To bring it back to the small business tax changes, now that I’ve painted a picture of the tremendous risk taken on many business owners, I’d like to add that I think they should reap the reward as well. At the end of the day, you will see all that money again as they likely support local charities, sponsor recreational sports teams, and invest the money directly into their own community.
I hope you have found this article interesting and provided a little food for thought regarding the value of businesses of all sizes in our country.
Dan Monk, P.Eng. / Red Seal Carpenter
Owner – MONK Renovations