B.C. Small Business Confidence Lowest in Canada, Survey Reveals

28 Feb, 2025

Confidence among Canadian small businesses is declining, with British Columbia experiencing the steepest drop, according to a new survey by the Canadian Federation of Independent Business (CFIB). The February Business Barometer shows that long-term small business confidence has fallen nationwide for the third straight month. B.C. saw the largest decline, dropping 3.7 points, followed by Alberta, Manitoba, and Ontario.

Small businesses in B.C. are struggling with growing uncertainty, with short-term confidence also ranking the lowest in Canada at just 41.8 index points—significantly below the historical average. The CFIB survey highlights key concerns for B.C. businesses, including taxes and regulations (77%), insurance costs (70%), wage costs (65%), and low demand (59%).

The looming threat of U.S.-Canada tariffs is adding to the uncertainty, making it difficult for small business owners to plan ahead. CFIB senior policy analyst Emily Boston emphasized that most small firms operate on tight margins, and a majority are unprepared for the potential impact of tariffs. Over half of B.C. exporters anticipate taking more than six months to adapt to new markets if tariffs take effect.

As inflationary pressures continue, small businesses are struggling to maintain stability. The uncertainty surrounding trade relations is further impacting their long-term outlook. U.S. President Donald Trump has repeatedly threatened to impose 25% tariffs on Canadian goods and 10% tariffs on Canadian energy. While the latest deadline is set for March 4, the reasoning behind the tariffs remains inconsistent.

Trump has linked the tariffs to concerns over fentanyl and migration, though data from U.S. Customs and Border Patrol contradicts these claims. Previous justifications have included trade deficits, revenue generation, and even the suggestion of using economic force to annex Canada.

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