Majority of B.C. small businesses face rising costs and weaker demand, TD survey finds

More than 60 per cent of B.C. small-business owners reported direct financial challenges over the past year, according to a recent TD survey. Fifty-one per cent said they were concerned about broader economic challenges, while 57 per cent cited ongoing direct pressures including rising costs, cash-flow difficulties or weaker customer demand.

Tang Trang, TD Insurance’s vice-president of small business insurance, said small businesses face pressure on both demand and expenses. He told Daily Hive that businesses have been navigating uncertainty as customers cut back their spending.

Xero’s Small Business Insights report found B.C. business sales fell 1.7 per cent year over year in the second quarter, a decline Xero attributed to high gas prices. Moneris, examining first-quarter transaction data, found domestic spending in B.C. was down 0.86 per cent from the same period in 2025, which it attributed to weak consumer sentiment.

Businesses are also managing higher costs linked to elevated prices and tariffs. Trang said many small businesses have developed a better understanding of business risk and are adapting by adding products or services, entering new markets, and investing in staff and equipment.

He said gaps remain, with many businesses struggling to manage financial challenges exceeding $10,000. Trang recommended reviewing insurance options to ensure adequate coverage for unforeseen circumstances.

TD surveyed 401 Canadian small-business owners from July 9 to 21. The surveyed companies had one to 500 employees and annual revenue of up to $5 million.