Canada’s Small Businesses Are Struggling — And Advisors Must Act Now

When my grandparents immigrated to Canada from Scandinavia, they believed hard work could build a better life. My grandfather purchased a patch of land in the Canadian Shield in his early 20s, believing that effort would bring tangible rewards—and it did.

But today, the Canada that once promised prosperity through effort seems to be fading.

As an entrepreneur and M&A professional, I see signs of economic stagnation daily—from small business owners to young professionals and families. What we’re facing isn’t just economic strain—it’s a national identity crisis.

We need to restore the economic conditions that once allowed people to thrive—not reinvent the country, but return to its roots.

The Death of Upward Mobility

The belief that hard work pays off is undermined by rising housing costs, stagnant wages, and an uncompetitive tax system.

According to CMHC, the average Canadian home cost $700,000 in 2023—far beyond the reach of most under 35. Even six-figure earners are being priced out of major cities.

No wonder so many 25-34 year-olds are living with their parents—a trend now at historic highs.

For young Canadians, wealth-building through real estate, investing, or entrepreneurship feels like a fantasy.

This trend affects not only individuals but the advisors and institutions that support them. A generation lacking access to ownership or capital won’t plan long term, invest in the future, or seek out financial advice.

SMEs Bear the Weight of Red Tape

Small- and medium-sized businesses (SMEs) employ nearly two-thirds of Canada’s private sector, yet they face a hostile environment.

Tax complexity, regulatory hurdles, and red tape discourage growth. According to the CFIB, small businesses lose $10.5 billion annually in productivity due to bureaucratic inefficiencies.

This isn’t just a business-owner’s problem. It affects succession planning, business valuations, deal structuring, and more.

It’s time for:

• A modernized SME tax framework

• Real tax incentives for reinvestment

• Policies that reward—not punish—scaling up

Canada Must Leverage Its Strengths

We are a resource-rich, globally trusted, highly educated country. Yet we often ignore sectors where Canada can lead—agriculture tech, mineral processing, clean energy—in favor of trend-chasing.

Entrepreneurs shouldn’t have to swim upstream. We need policies and support systems that align with our natural advantages.

Advisors and financial professionals must advocate for forward-looking frameworks that help businesses grow—and families build wealth.

We don’t need to start over. But we do need to remember what made Canada strong in the first place.