Small and medium-sized businesses warn of 'entrepreneurial drought' crisis, lobby feds for a reduction in small business tax rate - The Hill Times

Canada’s small- and medium-sized businesses are warning Ottawa about an “entrepreneurial drought” as more companies close than open for six quarters, with consequences that could spill over to larger firms. CFIB president Dan Kelly said the period shows “significant bleeding” in business creation across the country, pointing to January–March 2025 as a fifth straight quarter of negative net business creation and calling the first half of 2026 “troubling.” He links the slowdown to pandemic closure “hangovers,” strained Canada–U.S. trade ties, and higher energy costs amid regional conflict. CFIB is urging a federal small business tax cut from 9% to 6%.