Entrepreneurial drought threatens New Brunswick’s business landscape: CFIB
The Canadian Federation of Independent Business is warning of an entrepreneurial drought in New Brunswick.
According to the federation’s Canada’s Entrepreneurial Drought report, Part 1: The Shrinking Business Landscape, 2025 saw the highest business closure rates and weakest startup activity outside the pandemic period in Canada. Business exits reached 5.6 per cent between April and June, while business entries fell 4.8 per cent between Oct. and Dec.
In a press release issued Wednesday, the federation said that while overall business creation in Canada has been declining since the mid-1980s, openings had historically outpaced closures.
Louis‑Philippe Gauthier, CFIB Atlantic vice-president, said New Brunswick’s current entrepreneurial landscape mirrors national trends.
“We have more than 55 per cent of our members saying they would not recommend starting a business today,” he said.
Gauthier said a heavy tax environment, high costs and red tape are among the key challenges small business owners in New Brunswick and across Canada face when trying to keep their operations afloat or when considering opening a business.
With a significant budget deficit, a stagnant economy, population decline and recent immigration changes affecting economic growth, Gauthier said the government needs to better support small businesses to drive economic development in the province.
“There needs to be a very focused effort on growing the number of businesses in our province so the economy can grow,” he said.
Rather than prioritizing large projects with major companies, Gauthier said the province should focus on lowering costs, reducing red tape and creating conditions for small businesses to succeed.
He clarified the organization is not necessarily calling for increased government spending, but rather a shift in approach.
“There are a whole bunch of levers government can pull that don’t necessarily cost money,” he said.
The federation is currently developing the second part of its entrepreneurial drought report series, titled Fixing Canada’s Shrinking Business Landscape, which is set for release April 28.
