Small Business BC shuts down amid bankruptcy, lays off workers
An organization tasked with supporting small businesses in British Columbia, including helping businesses avoid bankruptcy, is now facing critical financial challenges of its own.
Without warning, Small Business BC filed for bankruptcy last week, and its entire website, outlining its services for the business community, has been taken down.
Currently, the website’s homepage is merely a blank white page with one line of text that reads, “Canada British Columbia Business Services Society (dba Small Business BC) was placed under bankruptcy as of December 5, 2024. MNP Ltd. has been appointed Trustee of SBBC.”
Sources also told Daily Hive Urbanized that about 36 staff with the non-profit organization were laid off on the same day.
- You might also like:
- "Catastrophic": Alarming number of businesses considering leaving BC
- BC companies with flexible hours and big benefits named among best in Canada
- BC's top employers have been named and these jobs come with big perks
- BC's minimum wage is going up but it has "unintended consequences"
Small Business BC operates as a non-profit organization, serving as a vital resource for small businesses and entrepreneurs, offering support to help them launch and grow successfully.
Each year, Small Business BC provides knowledge, guidance, tools, and support to thousands of businesses, expanding its operations significantly during the pandemic to meet increased demand. About 98% of the businesses within BC are classified as small businesses.
Archived financial statements show Small Business BC had an annual operating budget of about $3.34 million in 2019.
The annual operating budget grew exponentially over the subsequent years, rising to $7.07 million in 2023 — down from $7.38 million in 2022.
The non-profit organization receives funding for its “core programs” from the federal government’s Pacific Economic Development Canada (PacifiCan) and the provincial government’s Ministry of Jobs, Economic Development and Innovation.
Small Business BC’s bankruptcy comes just after a month of receiving a new infusion of funding from PacifiCan. On November 1, 2024, PacifiCan announced $2.7 million in new funding to support the organization’s efforts.
“British Columbia’s small businesses are the heart of our communities and the economic engine of our province,” said Harjit Sajjan, the Minister responsible for PacifiCan, in a statement at the time of the funding announcement.
“Behind every small business are creative, hard working and resilient entrepreneurs that are creating good jobs and building strong communities. PacifiCan is committed to working with partners like Small Business BC to fuel the entrepreneurial spirit of British Columbians and ensure small businesses have the resources needed to succeed.”
Daily Hive Urbanized has reached out to Small Business BC, PacifiCan, and the BC Ministry of Jobs, Economic Development and Innovation for comment.
Gavin Dew, the BC Conservatives’ critic for the Ministry of Jobs, Economic Development, and Innovation and the MLA for Kelowna-Mission, says the organization’s troubles represent a major blow to economic confidence.
“The sudden and unexpected demise of a well-known organization supporting thousands of entrepreneurs over the decades is yet another blow to the small business community and to economic confidence,” Dew told Daily Hive Urbanized.
“This happened on David Eby’s watch; the provincial government was a major longtime funder of SBBC and had direct line of sight with a seat on the board. It’s hard to take seriously any claim that the NDP cares about private sector jobs when they’re asleep at the switch on something this basic.”
Small Business BC’s origins can be traced back to Vancouver’s hosting of Expo ’86, when the provincial government established a provincial agency to help businesses capitalize on the economic opportunities created by the World’s Fair. In 2002, the organization transitioned into a non-profit entity, maintaining strong connections with the provincial government.
Small Business BC’s shutdown of its services comes at at time when businesses are increasingly struggling amid the province’s poor business climate — not just due to the market inflation of costs, but also from recent regulation changes implemented by the provincial government, according to industry stakeholders.
In a recent interview, Fiona Famulak, president and CEO of the BC Chamber of Commerce, told Daily Hive that 64% of employers are considering leaving the province and taking their business to another jurisdiction.
Moreover, according to Ian Tostenson, CEO of British Columbia Restaurant and Foodservice Association, inflation and rent increases paired with the rising minimum wage leave small businesses struggling to stay afloat, forcing many to reconsider their future in the industry.
With files from Amir Ali and Raxana Sun.