\u201cThis prolonged imbalance between business exits and new entries places us in an entrepreneurial drought\u00a0\u2014 a trend that threatens Canadian innovation, competitiveness and business dynamism,\u201d the report says<\/p>\n
Published Apr 26, 2026 \u00a0\u2022\u00a0 Last updated 3\u00a0days ago \u00a0\u2022\u00a0 2 minute read<\/p>\n
<\/a><\/p>\n You can save this article by registering for free here<\/a>. Or sign-in<\/a> if you have an account.<\/p>\n Two recent reports by the Canadian Federation of Independent Business (CFIB) reflect on\u00a0different aspects\u00a0of difficulties faced by small companies trying to survive in the Canadian business landscape.<\/p>\n Advertisement 2<\/p>\n This advertisement has not loaded yet, but your article continues below.<\/p>\n THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY<\/p>\n Subscribe now to read the latest news in your city and across Canada.<\/p>\n Unlimited online access to articles from across Canada with one account.Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on.Enjoy insights and behind-the-scenes analysis from our award-winning journalists.Support local journalists and the next generation of journalists.Daily puzzles including the New York Times Crossword.<\/p>\n SUBSCRIBE TO UNLOCK MORE ARTICLES<\/p>\n Subscribe now to read the latest news in your city and across Canada.<\/p>\n Unlimited online access to articles from across Canada with one account.Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on.Enjoy insights and behind-the-scenes analysis from our award-winning journalists.Support local journalists and the next generation of journalists.Daily puzzles including the New York Times Crossword.<\/p>\n REGISTER \/ SIGN IN TO UNLOCK MORE ARTICLES<\/p>\n Create an account or sign in to continue with your reading experience.<\/p>\n Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.<\/p>\n THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.<\/p>\n Create an account or sign in to continue with your reading experience.<\/p>\n Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authors<\/p>\n Article content<\/p>\n One report says this country is in an \u201centrepreneurial drought\u201d that threatens business dynamism.<\/p>\n Article content<\/p>\n Article content<\/p>\n A story by Postmedia journalist Bryan\u00a0Passifiume<\/a>\u00a0quotes CFIB analyst Joseph\u00a0Falzata\u00a0saying the report, Canada\u2019s Entrepreneurial Drought<\/a>, is a \u201cwake-up call\u201d for all levels of government. It says business entry rates in Canada have fallen almost 50% since the mid-1980s and remain at historic lows. The most recent drought has shown little sign of improving since it began in 2024.<\/p>\n \u201cIn the second quarter of 2025, exit rates decreased slightly to 5.6%, while entry rates fell to 4.9% (fourth quarter of 2025), marking some of the highest closure rates and weakest start-up activity outside the pandemic,\u201d says the report.<\/p>\n \u201cThis prolonged imbalance between business exits and new entries places us in an entrepreneurial drought\u00a0\u2014 a trend that threatens Canadian innovation, competitiveness and business dynamism,\u201d the report says.<\/p>\n Falzata\u00a0points out that since 98% of all businesses are small,\u00a0it\u2019s\u00a0important to\u00a0maintain\u00a0the right environment to encourage growth.<\/p>\n Advertisement 3<\/p>\n This advertisement has not loaded yet, but your article continues below.<\/p>\n Article content<\/p>\n The CFIB is calling for governments to lower taxes, cut red tape and remove barriers to entrepreneurship to encourage more business start-ups.<\/p>\n In another report earlier this month, CFIB said crime is a daily pressure for small businesses<\/a>.<\/p>\n \u201cOwners should not be spending more time and money managing theft, vandalism and safety risks than running their business,\u201d CFIB analyst Kayode Southwood said in the April 8 report, adding,\u00a0\u201cThe financial strain and emotional toll are exhausting.\u201d<\/p>\n He said business owners report\u00a0they\u2019ve\u00a0spent thousands of dollars on security cameras or replacing smashed windows.\u00a0Nearly half\u00a0of small business owners report concerns about their own safety and the safety of their staff and customers.<\/p>\n \u201cGovernments need to respond with stronger consequences for repeat and organized offenders, streamlined reporting\u00a0and faster responses from police\u00a0and supports aimed at prevention and recovery.\u201d<\/p>\n This country used to be fertile ground for entrepreneurs with hopes and dreams and the willingness to work hard and take risks to create new wealth. Read More<\/p>\n![\"Canadian](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/04\/GettyImages-500627722.jpg\")
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We\u2019ve\u00a0become a place where people are timid about investment and fearful for their safety if they show any kind of business initiative.<\/p>\n
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