B.C. small businesses seeing lowest confidence in the country, layoffs expected

Small business confidence in British Columbia has sunk to the lowest level in Canada for the second month in a row, and many owners say layoffs are on the horizon.

The Canadian Federation of Independent Business (CFIB)’s latest Business Barometer survey shows B.C.’s long-term optimism index slid to 45.3 in September, well below the national average of 50.2 and far from the breakeven mark of 50. Short-term expectations were also gloomy, sitting at 46.3.

That mood is translating directly into staffing decisions: only 13 per cent of small businesses in B.C. plan to hire, while 18 per cent expect they’ll have to lay people off.

“B.C. small businesses want to be the engine of B.C.’s economy, but they aren’t getting the support they need,” said Ryan Mitton, CFIB’s Director of Legislative Affairs for B.C., in a press release.

“Falling demand, rising costs, and growing uncertainty are weighing heavily on entrepreneurs. The fact that B.C. is at the bottom of the list nationally should be a wake-up call.”

The grim survey results landed just days after the province unveiled a record $11.6-billion deficit in its First Quarterly Fiscal Update.

According to CFIB, the top concerns for small business owners are tax and regulatory costs (72 per cent), wages (67 per cent), and insurance (62 per cent).

B.C. small business confidence is the lowest in Canada, with the province’s 12-month outlook sitting at 45.3 in September. (cfib-fcei.ca)

“Confidence has sunk because small firms aren’t getting a break from B.C.’s sky-high cost of doing business,” Mitton added.

Kalith Nanayakkara, CFIB’s Senior Policy Analyst for B.C., said in the release that owners expect the government to tighten its own belt, “It’s time to show fiscal discipline, avoid new taxes and fees, reduce red tape, and put forward a credible plan to balance the budget. Growth, not higher taxes, is the path back to confidence.”

In response, B.C. Minister of Jobs and Economic Growth Ravi Kahlon said the province is continuing to roll out supports to help businesses weather global uncertainty.

“Many businesses were just starting to turn the corner after inflation and high interest rates, and now they’re facing additional uncertainty, including the threat of unjustified U.S. tariffs,” Kahlon said in a statement to Daily Hive.

He added that B.C. maintains one of the lowest small business tax rates in the country and has launched an “ease of doing business” review to cut red tape.

The minister also pointed to CFIB’s own data showing a slight uptick in hiring plans in September compared with August as a sign of cautious optimism.

However, other pressures are piling on.

One in five businesses nationally reported problems distributing products amid tariffs and postal disruptions, double the historical average.

At the same time, a record 36 per cent said they’re struggling with equipment and technology costs.

CFIB said it will release a new report in the coming weeks on how businesses are adopting digital tools and AI, arguing that smart investment in technology could help boost productivity and ease some of the strain.

Daily Hive has reached out to BC Chamber of Commerce for a comment.

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