Lethbridge

Review the Business Climate

How it's done

The business climate is the general economic environment that local businesses operate in. Reviewing and understanding the local business climate provides valuable insights about the economy, costs, risks, and incentives that may impact the success of your business. This activity will guide you to better understand the business climate in Lethbridge and help you answer the following fundamental questions.

What is the business climate in Lethbridge?

We have compiled the most important aspects of Lethbridge’s business climate as an interactive dashboard below. This dashboard provides valuable economic, resident, household, dwelling and development indicators that may influence the success of your business.

What costs and assistance should I know about?

Whether you have a new or existing business it is critical to be aware of costs, incentives and grants that impact your business. This dashboard provides you with a snapshot of the major costs of conducting business in Lethbridge and assistance available to Lethbridge businesses.

Businesses in Lethbridge benefit from the lack of a Machinery and Equipment Tax.

Alberta has one of the lowest combined average federal/state corporate income tax rates in the country, as well as no payroll tax, sales tax, provincial capital tax or tax on financial institutions in the province. Canada has the added advantage of a publicly- funded healthcare system with no additional health care premiums charged in Alberta.

City of Lethbridge Tax Rate (2018)

The combined federal/provincial corporate income tax rate in Alberta is 27% for general businesses and 14% for small businesses. A competitive corporate income tax rate is in place for manufacturers. Businesses also benefit from the fact that Alberta has no inventory tax, no machinery and equipment tax, and no payroll tax which are common in many other provinces and U.S. states. Learn More

The Alberta government also offers additional tax credits to encourage capital investment into a wide variety of sectors.

Alberta Investor Tax Credit (AITC)

Capital Investment Tax Credit (CITC)

Growth and Diversification Act

Interactive Digital Media Tax Credit (IDMTC)

How do I use this information?

Having access to business climate statistics and information is one thing, but it's quite another to use data effectively and in a way that will benefit your business. This next section will help you do just that. Learn how to use this information to make better business decisions.

Monitor the local business climate

On-going assessment of the business climate is an essential part of operating a competitive business. In any business climate, there are numerous factors outside your control that will impact your business, both positively and negatively. The health of the economy impacts all businesses, but small businesses usually feel the effect of economic changes faster than big businesses. Improvements in the economy typically provide a rapid increase in new opportunities for small businesses, while an economic downturn can have a significant and prolonged negative impact.

Unfortunately, you can’t influence the economy, but you can monitor the business climate indicators provided above and then take the necessary actions to minimize risks to your business. Staying up to date with the business climate can also help you identify new opportunities that your business can take advantage of.

Know your costs

All industries are unique and incur different types of costs when starting or operating. Understanding these costs is essential when it comes to setting prices, budgeting and planning for growth or downturns. We’ve provided some of the local costs associated with taxes, development and labour that often get overlooked by businesses. There may be other municipal and provincial costs that apply to your business so we encourage you to contact us to find out more.

Where can I learn more about the business climate?

While we are providing you with a range of valuable information about the business climate, the fact is that there's much more available. In this section we provide you with links to other websites that will supplement our information and help to keep your finger on the pulse.

There may also be other municipal and provincial costs that apply to your business so we encourage you to contact us to find out more.

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Contact us

Erin Crane
Director, Investment Attraction
Economic Development Lethbridge
Phone: 403-331-0022
Erin@chooselethbridge.ca

Mike Prociw
Market Intelligence Advisor
Economic Development Lethbridge
Phone: 403-331-0022
Mike@chooselethbridge.ca