B.C. businesses sour on starting new ventures amid tax and hiring pressures
56% of B.C. business owners advise against launching a business today, as confidence hits a two-year low.
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More than half of B.C. business owners are advising people not to start a business right now — a stark signal of faltering confidence as entrepreneurs prepare to cast ballots in October.
According to the Canadian Federation of Independent Business's Monthly Business Barometer, 56 per cent of B.C. businesses say they would not advise someone to start a venture today. The long-term confidence index sits well below its most recent high of 67.4 points in December 2025, and remains below B.C.'s historical average.
Small businesses are struggling under multiple pressures. The biggest hurdles: tax and regulatory costs, wage costs, and fuel costs. Weak demand constrains growth for 48 per cent of small businesses in B.C., while a shortage of skilled labour limits 36 per cent of firms. Hiring plans remain net-negative — slightly more businesses are planning to reduce staff than expand it.
Ryan Mitton, CFIB director of legislative affairs for B.C., said small businesses are suffering from high taxes, tariffs, and red tape. "It's no wonder that 56 per cent of B.C. business owners say they would not advise [that] someone start a business today," he said. Entrepreneurs will be looking for bold promises to reduce the cost of doing business, like lowering the small business tax rate, as they prepare to cast ballots.
B.C. Premier David Eby announced Saturday he is stopping a planned PST expansion set to take effect October 1, under which some previously exempt businesses and services would have lost their exemption. Eby also announced that the next generation of BC Ferries would be built in B.C. Firms trading internationally show lower levels of optimism than businesses active only in Canadian markets.
What specific tax or regulatory changes are small businesses calling for ahead of the October election?
How do hiring intentions vary by industry or business size in B.C.?
We'll update this story as answers emerge.
The facts
What are the biggest challenges facing small businesses in B.C.?
Tax and regulatory costs, wage costs, and fuel costs are the biggest hurdles. Weak demand constrains growth for 48 per cent of small businesses, while a shortage of skilled labour limits 36 per cent of firms.
What action did B.C. Premier David Eby announce on September 26, 2026?
Premier David Eby announced he is stopping a planned PST expansion set to take effect October 1, under which some previously exempt businesses and services would have lost their exemption. He also announced that the next generation of BC Ferries would be built in B.C.
