Regulation costs Canadian businesses $37.1 billion a year

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According to Canada’s Red Tape Report, the total cost of complying with government rules and paperwork reached $37.1 billion a year in 2014. In the smallest businesses, the average employee can spend more than a month each year (185 hours) just dealing with regulations.

The onerous burden of excessive regulation is also deterring the next generation of entrepreneurs, as the report notes 42% of small business owners would not advise their children to start a business.

Although not all regulation is red tape, business owners say the regulatory burden could be cut by about 30%, or $11 billion a year, with no negative effect on health, safety and environmental goals of regulation.

Read the full report.