SOMBA K'E/YELLOWKNIFE - Henry White says the high cost of operating his barber shop and the lack of support from the city is forcing him out of business.

After four years of operation, Henry White sold his business to three up and coming barbers. White said the lack of support from the city and territorial government for small businesses in Yellowknife, particularly related to high rental costs and taxes, has forced him to jump ship and head to Hay River. - Andrew Livingstone/NNSL photo

The owner of Henry's Barbershop, located in the Nunasi Building on 48 Street, sold his business recently to a group of three upstart businessmen looking to take a crack at the haircutting business. In his four years as a barber in Yellowknife, White said he has enjoyed his time immensely, but said it is time to move on.

"I had a very good four years and to me in Yellowknife, a one man operation, is too much," he said. "I can't do my own thing and make ends meet."

White is upset with the city's lack of support for small businesses in the city, pointing to the continued increase in the cost of living.

"I think the recession took a toll on me and business," he said.

"I survived, everyone needs haircuts, but I think the increase in rent, power, heat, is driving people out of this city left and right.

"I think the GNWT needs to get off their butts and do something about it. It's scary. Every second customer doesn't know what to make of it because they can't afford to make ends meet."

White said he is frustrated with the city's recent 50 per cent increase to business licence fees, to $150 from $100 -- the first increase since 1990. He added recent comments by city councillor Shelagh Montgomery about the fee increase angered him.

"She said if businesses can't afford to pay the increase then they shouldn't be in business," he said. "People, business people, are pissed off. It's too expensive to operate here and they aren't doing anything for us.

"I'm a small business person. We have to survive and the 50 per cent increase is too much."

While admitting she's no business owner, Montgomery said the increase in fees isn't likely the biggest reason some businesses are having difficulties.

"I realize businesses are struggling with fuel costs and high rent, but I'm not sure that fifty dollars is really what puts someone over the edge," she said Tuesday morning.

"The increase in fuel prices and electricity costs are more substantial for someone to try and maintain a building."

The motion to increase the fees passed on Dec. 15. Couns. David Wind and Bob Brooks opposed the hike for the exact reason White is upset.

"If they want to encourage business and entrepreneurship, they need to keep all of the cost factors down, including the licence fees," Wind said. "We need to make it more attractive for people to be in business in Yellowknife."

White also said people are shopping less and less downtown because of the cost of parking and the lack of care in keeping the area safe and clean.

"This downtown core, it's like a pig ass," he said.

White is moving to Hay River to be close to his daughter who is expecting a baby soon and plans to work as a barber there.