Solopreneurs battle global trade turbulence while small firms buckle under growing red tape
Canada’s independent business community is facing a double blow from global trade instability and an increasingly complex regulatory environment.
First, a new EQ Bank survey of Canadian solopreneurs and micro-businesses found that more than half (51%) believe global trade conditions are having “an equal or greater impact” on their operations than the pandemic. A further 24% said they worry about their business surviving the current climate, and nearly one-third (32%) admitted they have occasionally considered closing down.
Meanwhile, the Canadian Federation of Independent Business (CFIB) released its latest “CFIA Report Card,” revealing that small firms are feeling crushed under the growing regulatory burden of the Canadian Food Inspection Agency (CFIA). The report found that 58 % of small business owners say CFIA-related red tape has increased between 2019 and 2024.
The EQ study highlights a growing sense of invisibility among solo business owners with 60% saying that they do not feel recognized as business owners in the same way larger companies are, and 51% believing that their contributions to Canada’s economy are undervalued.
Respondents also reported mounting operational strain with 38% stating that it is now harder to source raw materials or supplies and 34 % struggle to set fair prices in a volatile market. Another 30% find it increasingly difficult to plan for growth or make long-term investments.
Financial strain is also widespread with 59% saying they had to take on either business or personal debt to get started.
"Today's environment is putting immense pressure on many solopreneurs and small business owners who are adapting to new realities in trade, costs and competition every day," says Dan Broten, SVP and Head of EQ Bank. "Their contribution to Canada's economic fabric is enormous, and it's important we continue to find innovative ways to better support them."
Despite the uncertainty, Canadian solopreneurs show resilience with 69% saying that they would still choose to start their business again, knowing what they know now.
But while solopreneurs wrestle with trade instability, small food and agriculture businesses are facing a battle against regulatory overload.
The CFIB’s findings show widespread frustration among small operators, who argue that the CFIA’s complex requirements are designed with large corporations in mind, not smaller firms. Over half of surveyed business owners said the agency does not adequately consider small-business realities when developing rules, while another 54% felt their feedback is ignored when new regulations are created.
Juliette Nicolaÿ, CFIB policy analyst and author of the report, emphasises that the issue is not resistance to food safety regulation, but the lack of accessible guidance and clear communication.
“Small business owners know the importance of food safety,” she says. “They want to comply with regulations but to do that, they need clear guidance and support. SMEs should not have to hire a lawyer or a consultant to help them understand and comply with food safety regulations.”
The CFIB has urged the government and the CFIA to simplify rules, lower compliance fees, and modernize communication tools to make compliance less costly and confusing.
