MONTREAL – Canadian entrepreneurs are decisively shifting their focus towards expansion, with a striking 78% now prioritizing business growth despite persistent trade and economic volatility. This key finding emerges from a new survey by the Business Development Bank of Canada (BDC), released on October 15, 2026, coinciding with the launch of Small Business Week™.
The study, which underpins this year’s Small Business Week™ theme, “It’s a two-speed world now. Fast or Finished,” reveals a proactive mindset among small and medium-sized enterprises (SMEs). After a period marked by uncertainty, entrepreneurs are choosing to concentrate on controllable factors, embracing growth as a strategic response to a complex operating environment.
Navigating a ‘Two-Speed World’
The business landscape continues to present formidable challenges. The BDC survey highlights several headwinds impacting SMEs, including the accelerating influence of Artificial Intelligence (AI) on speed and cost efficiency, evolving market dynamics due to business transfers, persistent talent scarcity and high labour costs, fragile supply chains, and the ongoing threat of sudden trade shocks, such as tariff wars. Yet, even with these pressures, a clear majority of entrepreneurs are putting growth first, actively pursuing customer acquisition, enhancing productivity, and committing to diversification.
Isabelle Hudon, President and CEO of BDC, underscored this resilience. “Entrepreneurs do the impossible every day. When faced with uncertainty, they adapt, innovate and find new paths to growth. They may have taken a short pause last year, but seeing nearly 80% of small businesses focused on growth again is a powerful signal for Canada’s economy. Because in today’s world, there’s very little middle ground: you’re either fast or finished. And it looks like we’re overwhelmingly choosing fast,” Hudon stated.
Expansion Becomes Top Priority
The survey’s findings illustrate a tangible shift in entrepreneurial priorities and strategies:
- Perception of Change: 48% of SMEs believe the business environment is changing faster than it was two years ago, while 59% acknowledge that businesses slow to adapt risk falling behind.
- Prioritizing Expansion: Expansion is now the top priority for 46% of SMEs, a notable increase from 34% in 2025, indicating a significant pivot towards proactive growth.
- Customer Acquisition: Over the past 12 months, 64% of SMEs successfully acquired customers within their regional markets, with an additional 29% expanding their customer base elsewhere in Canada.
- Productivity Improvements: A substantial 88% of SMEs took at least one step to improve productivity, up from 74% in 2025, reflecting a strong commitment to operational efficiency.
- Diversification Amidst Tariffs: Among SMEs directly affected by U.S. tariffs, 58% expanded their products or services, a higher rate compared to 39% of SMEs overall, demonstrating a strategic response to trade barriers.
Resilience in the Face of Trade Pressures
To capture the most current perspectives on evolving trade pressures, BDC updated its 2026 State of Entrepreneurship survey with a second wave of data collection. This follow-up was conducted after new U.S. tariffs came into effect in late August, providing a timely snapshot of entrepreneurial sentiment.
Pierre Cléroux, Chief Economist of BDC, commented on the findings: “Canadian entrepreneurs have accepted that volatility, tariffs and disruption are part of today’s business environment, and they’re planning accordingly. They increasingly see growth as the answer to uncertainty. Instead of sitting on the sidelines, they’re finding new customers, diversifying their offerings and investing in AI to strengthen their productivity and their competitive position for the long term.”
Cléroux further emphasized the robustness of this growth mindset, even after accounting for recent trade developments. “What’s striking is that even after we factored in the latest round of tariffs, entrepreneurs’ growth mindset remained strong. A shift this significant from last year may be the most important finding in this year’s study,” he concluded.
The survey findings are based on an online poll of Canadian business owners and decision-makers, conducted in two waves: 1,500 respondents from June 8 to 29, 2026, and 1,000 respondents from September 4 to 13, 2026. Data were weighted by region and number of employees, providing a comprehensive overview of the Canadian entrepreneurial landscape.
This strong commitment to growth, even amidst a challenging global economic backdrop, signals a confident and adaptive entrepreneurial spirit in Canada. Businesses are not merely weathering the storm but actively charting new courses for expansion, productivity, and market diversification, positioning themselves for long-term success and contributing significantly to the nation’s economic vitality.
