Canada Loses 4,400 Active Businesses in 2 Years as New Firm Creation Stalls

1 articles · Updated · The Hub · Aug 14

Statistics Canada data show Canada had about 935,000 active businesses in March 2026, down 4,400 from March 2024 because openings are no longer replacing closures.
Canada ranks 17th of 22 advanced economies in business entries per capita at 4.61 per 1,000 people, while annual new-business creation was essentially flat at 190,399 in 2024 versus about 191,000 in 2015.
The report blames regulatory complexity, weak competition and uncompetitive taxation, noting Canada’s combined corporate tax rate averages 26% and top marginal personal tax rate approaches 54%.
Countries cited as stronger performers pair lighter regulation with more competitive tax systems: Estonia taxes only distributed profits, Singapore’s corporate rate is 17%, and Ireland’s is 12.5%.
The broader warning is that Canada’s 134 federal business-support programs cannot offset poor framework conditions, and its federal-provincial split makes nationwide reform harder.