Canada’s economic growth continues to face significant challenges, including declining productivity, stagnant growth, and a shrinking entrepreneurship landscape. While resources and talent are available, the nation’s entrepreneurial drive is faltering, and new data shows the problem is growing more urgent.
According to the latest findings from the Canadian Chamber of Commerce’s Business Data Lab (BDL), business dynamism in Canada remains stagnant post-pandemic, with fewer Canadians pursuing self-employment and a notable decline in the number of new businesses being launched. Research from the Business Development Bank of Canada (BDC) reveals that only half as many people are starting businesses today compared to 20 years ago. This decline underscores the country’s pressing economic malaise.
The BDL’s second report, Women Entrepreneurs: Canada’s Biggest Missed Business Opportunity, builds on last year’s Barely Breaking Ground report and sheds light on the critical gap in women’s entrepreneurship. Despite significant investments, women-owned businesses have made only slow progress, and Canada is falling behind other developed countries in fostering female entrepreneurship.
Marwa Abdou, Senior Research Director at the Canadian Chamber of Commerce, explains that gender-based barriers continue to limit the potential of women entrepreneurs. “Canada lags behind other developed countries in sufficiently supporting entrepreneurship with a higher-than-average share of missing women entrepreneurs — entrepreneurs who could be thriving if gender-based barriers were addressed,” Abdou said.
The report highlights that if gender-based gaps in entrepreneurship were closed, Canada could see an increase in its GDP by as much as 6% over the next decade. By comparison, the BDL’s Partners in Prosperity report suggests that annual GDP losses from across-the-board tariffs could reach 2.6%, while the IMF estimates internal trade within Canada could be worth 4% of GDP annually. The persistent entrepreneurship gap has already resulted in up to $180 billion in lost economic activity.
Candace Laing, President and CEO of the Canadian Chamber of Commerce, stresses the need for focused action. “Unlocking Canada’s economic growth potential requires a consistent and real focus on gender parity in entrepreneurship,” Laing said. “The missed opportunity for women entrepreneurs is not only a gender equity issue but a major economic issue that must be addressed.”
The report identifies several key barriers that prevent women from fully participating in entrepreneurship, including structural biases, limited access to financing, and sector-specific underrepresentation, particularly in high-growth industries like construction, mining, and technology. Women-owned businesses make up less than 10% of businesses in these sectors.
As of 2024, women-owned businesses account for approximately 18% of all enterprises in Canada, falling short of the federal Women Entrepreneurship Strategy’s goal to double that number by 2025. The gender gap is especially pronounced in Ontario and Quebec, where almost two-thirds of Canada’s “missing” women-owned businesses are located. The gap is highest in the Prairies, Prince Edward Island, and New Brunswick.
The findings come at a crucial time as the theme of the recent International Women’s Day 2025 was “Accelerate Action.” Despite modest progress, the report stresses that more urgent and larger-scale efforts are needed to address these challenges and tap into the full potential of women entrepreneurs in Canada.
The Canadian Chamber of Commerce is the largest and most active business network in Canada, representing over 400 chambers of commerce and boards of trade, as well as more than 200,000 businesses of all sizes and sectors. The Chamber works to create the conditions for collective business success and advocates for policies that foster economic growth and prosperity.
Related Retail Insider stories:
