Canada just saw one of its biggest months on record for new businesses, but just as many shut down. Statistics Canada (StatCan) data shows the number of active businesses fell in February, with the country seeing the fewest since October 2023, a 28-month low. This isn’t a one-off issue: new firms over the past year have been almost entirely offset by closures, pushing the rolling 12-month net change close to zero for the first time since the start of the pandemic.
Canadian Active Business Count Falls To A 28-Month Low
Canadian active businesses.
Source: StatCan; Better Dwelling.
Canada’s active business count slipped 0.04% in February, falling by 392 firms to 935,791. It was the third straight monthly decline, leaving the country with 2,361 fewer firms than last year, down 0.25%. Despite having more people to serve, Canada now has the fewest active businesses since October 2023, a 28-month low.
Canada Is Seeing Businesses Close As Fast As They Open
Canadian business openings vs closures, 12-month rolling sum.
Source: StatCan; Better Dwelling.
The slide isn’t due to a lack of business openings—those have been climbing. The latest data shows 46,785 businesses opened in February, up 6.4% (+2.82k) and the most ever reported in the month. In isolation, that looks like an entrepreneurship renaissance.
Unfortunately, the volume of businesses closing indicates this isn’t a time to celebrate. Canada saw 46,736 businesses close in February, up 5.8% (+2.57k) from last year and also setting a record for the month. The volume of closures was within spitting distance of openings, helping to explain why active businesses are falling. Openings are showing growth, but with a near-identical volume of closures, this is just churn.
Canada’s business churn is also getting hard to ignore. Over the 12 months ending in February, openings outpaced closings by just 28 businesses. Not 28,000, just twenty-eight. New firms are still being created, but the volume disappearing is nearly identical. The rolling 12-month net change is now effectively zero, a level not seen since the start of the pandemic.
Canada has plenty of new businesses opening. It also has nearly as many disappearing. That’s not a boom—it’s an economy running hard to stand still.
Coincidentally, StatCan abruptly announced this morning that they would be discontinuing their analytical reports of the business counts. The data will continue to be updated, but it won’t be shared though the agency’s primary communication channels “for the public and media.” Great timing.
Have you tried to run a business in Canada? They treat you like a criminal and you’ll spending thousands in audit for the gov to determine they were wrong.
Meanwhile, big companies attached to politicians don’t just skip the taxes—we pay them to be here.
My doctor works for my phone company, my news comes from my cell phone provider, and my provincial liquor store banned Manitoba alcohol while American licensed beer is promoted. Our most famous commercial is is from a company that bears the name of a family that was allowed to print the Canadian dollar privately for 85 years.
I. Am. Canadian.
some good perspective. Almost as good as realizing the “Buy Canadian” government campaign actually allows foreign companies to qualify as “Canadian” as long as they register a branch. No employees or anything.
No crap. You know why, right? Ukraine is basically Canada’s 11th province now.
I’m old enough to remember when this same government suggested small businesses were cheats. The CRA is probably shaking them down for a third time, but where the guy in the Panama Papers? Oh right, in the leading party.
It’s more surprising that so many businesses are opening up considering literally anyone will tell you the only people that make money in Canada have to become insiders.