Toronto’s entrepreneurial spirit is alive and well—but so is the region’s crushing reality. Statistics Canada (StatCan) data shows Toronto CMA saw the most April business openings in at least 11 years. At the same time, it also saw the second-most April business closures on record—only behind 2020. The combination has driven the number of active businesses in the region to its lowest level in almost 4 years.
Toronto Business Slump: Fewest Businesses Operating Since 2022
The number of active businesses operating across the Toronto CMA.
Source: StatCan; Better Dwelling.
Toronto has seen the number of businesses operating fall for a seventh straight month. Active businesses in the CMA made a minor drop of 14 businesses to 187,700 in April, 0.9% (-1.8k) lower than this time last year. Since peaking in January 2024, the region’s business count has dropped 1.6% (-3.0k) to its lowest since June 2022. That’s nearly a 4-year low for what’s often touted as Canada’s business capital.
Toronto Sees Most April Business Openings In At Least 11 Years
The number of April business openings across the Toronto CMA.
Source: StatCan; Better Dwelling.
The eroding business landscape in Toronto definitely isn’t due to a lack of effort. The region’s entrepreneurs started 10,870 businesses in April, up 1.9% (+202) from last year. This marks the most openings for the month in at least 11 years of data. Even the highest volume of business openings in over a decade couldn’t offset the surge in closures.
Toronto’s April Business Closures Were Second Only To 2020
The number of active businesses that closed across the Toronto CMA in April.
Source: StatCan; Better Dwelling.
April set a record for business openings, but it also set one for businesses closing. StatCan reported 10,720 business closures in April, up 4.3% (+441) from last year and the second-highest ever reported for the month. The only April to report more business closures in the region was 2020, the first full month after public health lockdowns. Not quite as bad as the pandemic when it comes to closures, but it’s the next worst thing.
The latest StatCan data notably shows fewer active businesses but slightly more openings than closings. Surprisingly, this isn’t due to a sampling issue as StatCan uses actual administrative data. While opening businesses are usually recorded, those closing tend to have a higher probability of delayed reporting. In other words, when this data is reconciled, the odds are slanted towards looking worse.
Regardless, the key insight remains the same—Canada’s largest city is in a slump. The number of businesses operating is nearing at a 4-year low, and closures have ramped up. While there’s a healthy volume of new businesses opening, the region’s churn is leaving the size of its business community going nowhere fast.
