The truth behind Canada’s small business statistics

Statistics prove how vital small businesses are to Canada

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According to the Government of Canada’s Key Small Business Statistics 2024 report: 

• 98% of all employer businesses are small businesses (fewer than 100 employees).
• About 70% have fewer than five employees.
• Small businesses employ 10.7 million Canadians, driving innovation and keeping local economies alive.

It all looks great on paper, but really, many owners are burning out. It’s hard to focus when you’re struggling to keep the lights on and facing issues few outsiders ever see.

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What keeps small business owners up at night?

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You probably didn’t start your business dreaming of debits and credits and filing taxes. But money is where reality hits like a hammer. In a 2024 global mental health survey of entrepreneurs, 39.2% cited financial worries as their biggest mental health challenge.

Meanwhile, the June 2025 Business Barometer from the Canadian Federation of Independent Business (CFIB), shows small business confidence in Canada is sitting at 47.3% – an increase of seven points above May level, yet still short of the breakeven threshold of 50 on both long- and short-term horizons.

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The human takeaways

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Running a small business is personal and incredibly emotional.

Many small businesses are cautious about hiring or investing, worried today’s thin margins could evaporate with the next interest rate hike or supply chain glitch.

The weight of small business decisions often falls on just one or two people. Unlike big corporations, there’s no financial safety net if sales dip. You've got the weight of the world on your shoulders, and the decisions don't just impact the business, they impact you, your family, your employees, your customers, your vendors and more.

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The hidden small business epidemic

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Here's something that rarely makes it into glossy reports on small business statistics: 26.9% of entrepreneurs say loneliness or isolation is their biggest struggle.

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Why loneliness?

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You might be surrounded by customers or staff all day, yet you still feel like no one truly gets what it’s like to take on the risk, make the hard calls, and keep smiling through all the uncertainty.

Here’s the thing: Loneliness among small business owners is so common experts now call it a hidden mental health crisis. The Canadian Mental Health Association (CMA) has urged more support for entrepreneurs who often face this journey alone.

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Wearing every hat takes a toll

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Running a small business means you’re the marketer, bookkeeper, sales team, HR department, and often the problem-solving janitor too.

According to Statistics Canada’s Q1 2025 Business Conditions Survey:

• 45% of small businesses said hiring and retaining employees is their top challenge.
• 52% flagged rising input costs like rent, materials, and insurance as their biggest worry.

Meanwhile, more than half of small business owners work more than 50 hours a week. It’s not unusual for owners to sacrifice evenings, weekends, even vacations, to keep their businesses running.

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What do these small business statistics really mean?

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These numbers tell a powerful story about Canadian small businesses.

• Most are tiny teams, or even solo operations, carrying enormous weight.
• Financial stress and long hours are the norm, not the exception.
• Too many owners face everything in isolation.‍

Community is more than a buzzword

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With all this pressure, it’s no wonder many small business owners long for a trusted circle of people who understand the ups and downs, offer practical tips, and genuinely celebrate their wins. Furthermore, owners with strong networks also report lower stress and greater resilience. These are just some of the reasons why we've built the Huumans small business community.

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Curious? Join us in our online small business community.