As we celebrate Small Business Week, it's time to spotlight the unsung heroes of our economy: the entrepreneurs, the dreamers and the risk-takers who build businesses from the ground up. Small businesses make up 98% of all employer businesses in Canada and employ more than 10 million Canadians.1 Their resilience and innovation are not just admirable, they're essential to our national prosperity.
Stimulating growth: Why small businesses matter
Small businesses are the backbone of Canada's economy. They contribute over 40% to the national GDP and are often the first to innovate, adapt and serve local communities.1 Supporting their growth means investing in job creation, regional development and economic diversification.
As an insurance provider, we see firsthand how risk management and financial protection empower small businesses to scale confidently. But beyond insurance, entrepreneurs need the right environment to thrive.
Best provinces to start a small business in 2025
Choosing the right province can make or break a business. Factors like tax rates, talent availability, regulatory ease and access to funding vary widely across Canada. Here are the top contenders:
Alberta
- Lowest corporate tax rate in Canada and no provincial sales tax (PST)2
- A young, skilled workforce and a diversified economy spanning energy, agriculture tech and tourism
- Over 154,000 small businesses and a gross domestic product (GDP) per capita of C$78,1542
British Columbia
- A booming tech sector, especially in Vancouver, with strong ties to US markets
- Rich in creative talent and an innovation hub
- Attractive for startups in software, green tech and digital media
Ontario
- Home to Toronto, Canada's financial and tech capital
- Access to world-class universities and a multicultural talent pool
- Strong government support and proximity to major markets
Each province offers unique advantages, but the common thread is a commitment to fostering entrepreneurship through grants, mentorship and infrastructure.
Top challenges facing small businesses today
Despite their importance, small businesses face mounting pressures in 2025:
- Inflation and rising costs: 62% of small businesses report that inflation is their top concern, affecting everything from rent to raw materials.1
- Access to capital: Many struggle to secure affordable financing, especially in early stages.
- Labour shortages: Finding and retaining skilled workers remains a challenge, particularly in tech and trades.
- Digital transformation: 45% of small businesses say they lack the resources to adopt new technologies, putting them at risk of falling behind.1
- Cybersecurity risks: With increased digital operations, small businesses are more vulnerable to cyber threats but often lack robust protection.
How insurance can empower growth
Insurance isn't just about protection — it's about possibility. By mitigating risks, we help small businesses:
- Secure funding with confidence.
- Navigate legal and regulatory hurdles.
- Recover quickly from unexpected disruptions.
- Attract top talent with benefits and coverage.
Whether it's liability, property, cyber, or employee benefits, tailored insurance solutions are a cornerstone of sustainable growth.
Small Business Week is more than a celebration — it's a call to action. As a company dedicated to serving entrepreneurs, we believe in building a Canada where small businesses don't just survive—they thrive.
Sources
1Blainr, Nicole. "Small Business Statistics in Canada," Made in CA, updated 31 Dec 2024.
2King, Keven. "7 Best Province to Do Business in Canada," Truehost, 3 Mar 2023.