Survey Reveals Top Concerns of Small Businesses in Canada

The Canadian Federation of Independent Business (CFIB) has released the results of its most recent Your Voice survey.

The July edition captures the latest views on taxes, trade and infrastructure.

When asked how meaningful tax relief would affect their operations, the majority of small business owners pointed to immediate cost relief and longer-term growth. More than half (55 per cent) would use it to stabilize operations or manage rising costs, while roughly one-third (35 per cent) said they would invest, grow or expand their business.

Small business corporate income tax was the top area identified for cuts, followed by personal income and sales taxes.

Tariff impacts from U.S.-Canada trade tensions continue to weigh heavily on businesses, especially those involved in trade. When asked how they are coping with higher border costs, 40 per cent of businesses said they have raised prices. Others have turned to domestic suppliers (36 per cent), absorbed some or all of the tariff costs themselves (31 per cent), or delayed or cancelled expansion plans (28 per cent).

Tariffs on U.S. imports were reported almost six times more often than on exports. Most businesses are absorbing tariff costs, either alone or through cost sharing. On exports, 63 per cent covered costs directly or shared them. On imports, 67 per cent paid the full tariff without supplier adjustments.

Among exporters, 44 per cent passed the entire duty to U.S. customers, while 34 per cent shared the cost and 29 per cent offset it internally.

Since the tariffs took effect in March, a typical small firm has paid about $9,000 in Canadian import duties and $22,500 in U.S. export duties.

Sentiment has shifted in the business community for counter-tariffs. Approval has fallen from 75 per cent in March, to 62 per cent in July – a 13-point drop in four months.

There is strong support among small businesses for faster approvals of national infrastructure projects. Most say these improvements would help grow the economy, improve transportation and supply chain access, and attract investments in local communities. At the same time, many feel overlooked in planning and execution, and worry that accelerating projects may reduce attention to environmental impacts.

CFIB surveys members every two months to glean business owners’ views on emerging policy issues. The most recent edition polled 2,090 member-companies online between July 10-24. The latest takeaways reflect a business community focused on cost control, predictable trade conditions and smarter public investment.