October 19 marks the start of B.C.’s Small Business Week—a fitting moment to take stock of the people and enterprises that make up the heart of British Columbia’s economy: small and medium-sized businesses (SMBs).
SMBs are a cornerstone of the Canadian and B.C. economies. Statistics Canada’s latest Business Counts data confirms their scale: 98.3% of rural and 98.6% of urban businesses in B.C. are small enterprises. Medium-sized firms make up just over one percent, and large ones a mere 0.1–0.2%. Among them, the five core sectors with the highest market shares and business counts are Construction, Retail trade, Agriculture, forestry, fishing, and hunting, Accommodation and food services, and Other services (except public administration). However, with a shifting global economic and operating landscape, many expect to face new challenges.
An Uneven Outlook
The most recent Business Conditions Survey offers a mixed portrait of B.C.’s urban and rural business expectations for the next three months between Q2 and Q3 2025. Profit expectations have fallen, particularly among rural firms, while urban businesses show slightly renewed optimism. Hiring trends have reversed since spring: rural employment is slipping, but urban employers are adding staff again.
Marketing budgets have inched upward, a sign that businesses are competing more aggressively for customers. Yet sales and demand are bearish, suggesting that many are spending more while earning less.
The downstream effects are predictable: while job vacancy expectations remain steady, training budgets are shrinking as businesses focus on hiring ready-made skills instead of developing new ones. In turn, labour shortages—already acute in rural areas—continue to climb the ranks of structural barriers to growth.
When business owners were asked about their biggest challenges, several themes were prominent:
- Labour shortages, especially in rural regions where recruiting and retaining skilled employees remains difficult.
- Weak demand, amplified by shifting consumer behaviour and slower tourism.
- Intensifying competition in both domestic and export markets.
- Technology gaps, as older systems and skills struggle to keep pace.
- Limited capital access and shortages of space or equipment, particularly outside urban centres.
The pattern points to resilience through restraint—businesses are prioritizing efficiency and reducing operating expenses, particularly in labour costs.
Targeted Supports For Economic Renewal
Through funding programs and policy adjustments at both national and provincial levels, targeted supports are helping SMBs adapt and thrive amid global shifts, such as
- WorkBC Wage Subsidy Program – Offsets part of employee wages while new hires receive on-the-job training.
- Rural and Remote Employment Initiatives Fund – Finances business advisory services and labour-market studies to help communities diversify.
- Export Navigator – Provides free, tailored guidance to businesses entering new markets.
- B.C. Business Advisory Service – Offers one-to-one consultations on funding and growth planning.
- Trade and Invest BC – Connects local firms with global trade and investment opportunities.
To explore more supports for SMBs and related industries:
- B.C.’s list of services and measures for workers and businesses affected by trade shifts.
- Review Incentives and Tax Credits that B.C. available to qualifying B.C. businesses for attractive financial benefits.
References
- Rural Business Conditions, Statistics Canada Dashboard
- Rural Business Counts, Statistics Canada Dashboard