By: Yildiz Subuk, Staff Writer
Small businesses contribute to local economies by offering unique products, innovations, and creating job opportunities. In Canada, they employ over five million people throughout the country and make up nearly 98% of all businesses. However, the narrative around small businesses often focuses on the owners, and ignores the employees.
CEOs and small business owners have some key differences. CEOs are often chosen by a Board of Directors, which is made up of investors who oversee a company’s entire vision. Small business owners are those who create and manage a business at a smaller scale, and tend to be more “hands on,” as they take charge of hiring, payroll, and other administrative roles. Both positions share a key similarity: they rely on the labour of others to grow their companies. Employees are the ones putting in the labour to sustain and grow the business. Businesses are built on the backs of the workers, who are often subjected to lower wages and limited benefits. While the growth of small businesses is important, emphasis must also be placed on improving conditions for the workers who are directly responsible for their success.
Conditions for employees
Although small businesses open up new job opportunities for locals, that doesn’t inherently mean they ensure the best labour conditions for employees. While there are obvious exceptions to this idea, there is clear evidence that small businesses don’t provide better work environments compared to large businesses. This doesn’t excuse the fact that many large corporations engage in unethical practices, but it does provide perspective into how small businesses are part of a capitalist system that relies on the control and exploitation of workers.
Small business owners have a tendency to micromanage, monitoring their employees day-to-day tasks. Micromanagers often focus on critiquing instead of providing productive feedback. A small business owner wanting to micromanage makes sense because most small business owners are hard workers, who want to ensure everything is up to standard. The problem lies in the fact that micromanaging can cause a drop in job satisfaction and morale. While it is understandable for business owners to prioritize quality, efficiency, and cost-effectiveness, constant micromanagement can be extremely frustrating for their employees. At the end of the day, workers remain the driving force to success. In order to succeed, a team of competent employees is needed, and most importantly a manager who can allow their employees to display such competence. Micromanaging can often lead to employees feeling like the owner has doubts about an employee’s competency. It can be condescending and devaluing, as it shows the owner’s lack of trust in his employees capabilities.
Business blogs such as First Reference and CFIB have made the argument that minimum wage increases can be harmful to small businesses. As minimum wage increases, small business owners may struggle to keep up with paying their employees the legally required amount set by the province. While this is a valid argument, it ignores a crucial component of the discussion — the employee. This rhetoric prioritizes the well-being of the business while neglecting the employees who drive the business forward. While it is important for small businesses to receive support when minimum wage is increased, ensuring employees receive fair and adequate pay should take priority.
Minimum wage is increased to improve the standard of living. It’s important workers are supported through a rising cost of living. Even then, minimum wage does not equate to livable wage. A livable wage is one that guarantees employees, live a comfortable life, not having to worry about whether they will be able to afford food, make rent, and have access to social benefits and education. This should be considered the bare minimum. The average liveable wage in BC is currently $27 per hour. The minimum wage, however, is only $17.40 per hour. So, those making less tend to have more difficulties with affordability.
While businesses may take a hit when it comes to increasing minimum wage, we must ask what’s more important — the business or the quality of life of the employee? The latter is both the most reasonable and the most morally just choice.
The responsibility
So, while small businesses provide society with benefits, they have a responsibility to ensure their employees are put first. Small businesses aren’t perfect, or entirely ethical either. Ultimately, the entire point of a business is to generate revenue. So, when there is discourse about protecting small businesses, it often focuses on the owners, and less on the employees. The accomplishment of a business is communal, which means that discourse about supporting businesses should include, first and foremost, advocacy for the workers.
