A new report from the Canadian Federation of Independent Business (CFIB) shows small business confidence in British Columbia is slipping, with more than half of business owners in the province saying they would not recommend starting a business right now.
According to the CFIB’s latest Monthly Business Barometer, released as the province heads into a snap election, 56 per cent of B.C. businesses say they would advise against launching a new venture today. The CFIB says the long-term confidence index sits below B.C.’s historical average and well off its most recent high of 67.4 points recorded in December 2025. The report also notes that businesses trading internationally are showing lower optimism than those operating solely in Canadian markets.
Taxes, Tariffs and Red Tape Cited as Pressures
Ryan Mitton, the CFIB’s director of legislative affairs for B.C., said the province is facing what he described as an entrepreneurial drought, with small businesses reporting they are struggling under high taxes, tariffs and regulatory red tape. Mitton said the economy needs to be a central issue for all parties in the election.
He added that as voters prepare to cast ballots in October, entrepreneurs will be looking for commitments that would lower the cost of doing business, including a reduction to the small business tax rate.
The CFIB identified tax and regulatory costs, wage costs, and fuel costs as the biggest hurdles currently facing B.C. businesses. The report also found that hiring intentions remain net-negative, meaning slightly more businesses are planning to cut staff than to add workers.
Weak Demand and Labour Shortages Weigh on Growth
The CFIB report found that weak demand is the leading constraint on growth for close to half of small businesses in the province, at 48 per cent, while a shortage of skilled labour was cited as a significant constraint by 36 per cent of small firms. Mitton said those figures help explain why a majority of business owners are advising against starting a business today.
CFIB Monthly Business Barometer: Key B.C. Figures
Policy Moves Ahead of the Snap Election
The report comes as B.C. Premier David Eby faces a snap election. One policy shift welcomed by business owners was the halting of a planned expansion of the province’s provincial sales tax (PST), which would have removed some businesses and services from their existing tax exemption starting Oct. 1. Eby announced the reversal at the Union of British Columbia Municipalities convention just days before calling the snap election.
Eby also announced during that period that the next generation of BC Ferries vessels would be built within the province, a move framed as supporting local jobs. The CFIB’s findings suggest that despite these announcements, confidence among small business owners heading into the election remains weak.
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