Canada is in an entrepreneurial drought. For over a year, more people have been shutting down businesses than starting them. When entrepreneurship dries up, innovation and competition dry up with it, says the Canadian Federation of Independent Business.
Canada’s economy depends on the health of its small and medium-sized businesses. Today, more than half of business owners wouldn’t recommend starting a business thanks to rising costs, supply chain pressures, market uncertainty, high taxes and a heavy regulatory burden. Supporting SMEs isn’t just about individual companies, it’s about protecting the foundations of Canada’s economy, said the national organization which has launched a petition demanding the federal government "stop crushing" small businesses.
The CFIB said Canada is seeing a sustained decline in entrepreneurial activity, with more businesses closing than opening. Business creation has weakened significantly, and recent quarters continue to reflect fragile, net-negative growth.
55% of SMEs wouldn't recommend starting a business today.
"The entrepreneurial drought is not just a statistic. It is a warning. If left unaddressed, Canada could face a future where opportunities for business ownership shrink, local economies stall, and innovation grinds to a halt."
Canada’s entrepreneurial drought won’t reverse on its own. Governments need to take meaningful steps to make it easier to start, run, and grow a business, said the CFIB.
It said it is pushing for practical solutions that help small businesses right now. "We are focused on what owners say matters most: reducing the overall tax burden and addressing rising prices and the cost of doing business."
Its priorities:
Reducing tax and cost pressures that make running a business and hiring harder
Eliminating red tape that eats up owner time and delays permits
Removing barriers to entrepreneurship that make it harder to start, scale, or transition a business
CFIB said it is tracking the entrepreneurial drought across Canada and taking small business concerns directly to governments. "Through data and real stories, we highlight what’s at risk and what needs action."