Two separate surveys highlight the resilience of business innovators
As the world braces for the uncertainty of Trump tariffs, Canadian entrepreneurs and startups remain resilient and focused on pushing ahead.
Two polls this week highlight the enduring drive for innovation and growth among business owners even with the uncertainty of the trade war that is set to escalate Wednesday when the US president announces his tariff decisions.
An Ownr survey shows that entrepreneurs are shoring up finances and finding new funding streams to fuel their ambitions with 86% of respondents saying they have financed their business using non-revenue related sources.
These include personal income and savings, funds from another business they run, and loans from financial institutions, the government, and family and friends. Many are working more than one job.
They are looking at new products, services, and markets for growth potential along with strengthening existing customer relationship, rather than hiking prices.
"It's a precarious time for many small business owners in Canada given the evolving macroeconomic environment. Despite this, they are unwavering in their entrepreneurial pursuits by diversifying funding streams to fuel their business growth," said Jordan Casey, CEO, Ownr. "In fact, our survey found that nearly three quarters of entrepreneurs would be happy to launch their business all over again if given the chance."
The survey also found some knowledge gaps though and, among the half of respondents that are solopreneurs, four in ten had never created a formal business plan. Only 39% said they were confident that they understood the impact of interest rates and macroeconomic trends on their business.
New markets
Meanwhile, a new survey of Canadian startups conducted by MaRS Discovery District and Communitech found that more than three quarters are expecting an impact from tariffs.
But despite 41% expecting a direct negative impact on revenue from tariffs, two thirds of the healthtech, cleantech, and advanced manufacturing focused businesses polled said they are not planning to reduce headcount, affirming a strong commitment to retaining talent in the face of uncertainty.
"The threat of US tariffs is forcing Canadian founders to rethink growth strategies and explore alternative markets," says Grace Lee Reynolds, CEO of MaRS Discovery District. "This is a critical moment for Canada to strengthen its innovation ecosystem and create new pathways for global growth."
While 70% of respondents generated US revenue in 2024, a quarter of ventures are reassessing international expansion plans with a renewed focus on the UK, EU and Asia.
Canadian small business owners are redirecting their suppliers and investments to Canadian and international markets outside the US in response to disruptions caused by US-Canada tariffs, according to new survey data from the Canadian Federation of Independent Business.
