Canadian Small-Business Confidence Falls to 49% as 71% Face Higher Operating Costs
Updated
Updated · retail-insider.com · Aug 19
Canadian Small-Business Confidence Falls to 49% as 71% Face Higher Operating Costs
2 articles · Updated · retail-insider.com · Aug 19
Summary
Zensurance’s 2026 survey put Canadian small-business confidence at 49%, down from 58% in 2025 and 70% in 2024, the weakest reading in three years.
Rising costs and softer sales drove the drop: 71% reported higher operating expenses, 58% said fuel costs hurt margins, 43% posted lower revenue, and 59% said the economy had damaged their business this year.
Cash buffers were thin as four in five respondents had three months of reserves or less, and nearly half said they had considered closing permanently at some point in 2026.
Insurance coverage also weakened, with 61% operating uninsured versus 33% in 2024; 29% cited customer nonpayment as their biggest risk, ahead of cyberattacks at 14%.
Regional strains varied—75% in Atlantic Canada flagged gas prices, Ontario led inflation concerns at 38%, and British Columbia had the highest share considering closure at 57%—while the 'Buy Canadian' push lifted demand for only 17%.