Story perspectives

Canada's Small Business Closure Rate Hits 5.6% Amid Challenges

4/17/2026

Summary

Story summary

Canada faces an entrepreneurial drought, per the Canadian Federation of Business (CFIB), with closures exceeding openings since early 2024.
The closure rate reached 5.6% in Q2 2025, with Ontario accounting for over 70% of the gap, notably in transportation and finance.
55% of small firms advise against starting a business now due to perceived lack of government support.
High costs, complex regulations, and market concentration hinder small-business growth.

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Story summary

Canada faces an entrepreneurial drought, per the Canadian Federation of Business (CFIB), with closures exceeding openings since early 2024.
The closure rate reached 5.6% in Q2 2025, with Ontario accounting for over 70% of the gap, notably in transportation and finance.
55% of small firms advise against starting a business now due to perceived lack of government support.
High costs, complex regulations, and market concentration hinder small-business growth.