The Canadian Federation of Independent Business (CFIB) expressed disappointment as Parliament rose for the summer without delivering meaningful support for small businesses. According to a new CFIB survey, nearly three in four (73%) small firms feel unsupported by the federal government, and the latest parliamentary session did little to change that sentiment.
Missed Opportunities for Small Business Relief
While Ottawa focused on incentives for large corporations, small businesses were left waiting for action on key issues such as tax relief, regulatory modernization, and cost reduction. CFIB executive vice-president of advocacy Corinne Pohlmann stated, "Parliament may be taking a summer break, but small business owners don't get one. Ottawa has had every opportunity to lower the costs of doing business this past session, but it chose not to."
The spring economic update included some positive measures, such as a reduction in Canada Pension Plan (CPP) premiums and making the Employee Ownership Trust tax exemption permanent. However, these steps were insufficient to improve conditions for most small firms. New CFIB data shows that 58% of small businesses continue to feel pressure from rising fuel costs, while taxes squeeze margins for nearly half (48%). Additionally, 43% cite economic or political uncertainty and other operating costs as major challenges.
Entrepreneurial Drought Looms
Over half (55%) of small business owners say they would not recommend starting a business right now. CFIB is urging Ottawa to return in the fall with a focus on Main Street, including reducing the federal small business tax rate from 9% to 6%, increasing the small business deduction threshold to $700,000, introducing a lower Employment Insurance premium rate for smaller employers, and implementing a two-for-one rule on federal regulations to jumpstart regulatory modernization.
Jasmin Guenette, CFIB's vice-president of national affairs, emphasized the urgency: "With Canada facing an entrepreneurial drought, government needs to encourage entrepreneurship, not ignore it. Small firms need meaningful tax relief, less red tape, and a government that acts."
Survey Methodology
The Your Voice – April 2026 survey was conducted online between April 9-27, 2026, with a sample of 1,611 respondents. For comparison, a probability sample of the same size would have a margin of error of ±2.44%, 19 times out of 20.
About CFIB
The Canadian Federation of Independent Business is Canada's largest association of small and medium-sized businesses, with 103,000 members across every industry and region. CFIB is dedicated to increasing business owners' chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
SOURCE: Canadian Federation of Independent Business (Toronto)
