Nearly three-quarters of Scotiabank small-business clients surveyed earlier this year expressed optimism about the future of their businesses, despite economic uncertainty and rising operating costs facing Canadian entrepreneurs.
According to the 2026 Bond Brand Loyalty Business Banking CX Report, 74% of surveyed Scotiabank small-business clients were optimistic about their business prospects over the following 12 months, compared with 62% who expressed optimism about the Canadian economy. The findings suggest that many entrepreneurs remain confident in their own operations even as tariffs, expenses and broader economic conditions influence investment decisions.
Scotiabank’s October 15 announcement also draws on listening sessions conducted in August and September with franchise operators, healthcare practitioners, lawyers and accountants. Those discussions identified acquisitions, diversification, technology investment and operational efficiency among the strategies business owners are considering or pursuing as they plan for future growth.
The optimism figures come from research conducted between March 6 and April 1, 2026, while the more recent listening sessions provide qualitative observations about business priorities. The findings offer insight into how participating entrepreneurs are approaching investment decisions, although they do not establish the extent of actual expansion activity across Canada’s small-business sector.
Economic Pressures Continue to Influence Investment
Small businesses are an important part of Canada’s economy, with enterprises employing between one and 19 people accounting for more than 90% of employer businesses and providing approximately 4.5 million jobs, according to Statistics Canada.
Operating conditions remain challenging. Statistics Canada’s second-quarter 2026 business expectations research indicated that approximately 64% of businesses with one to 19 employees anticipated cost-related obstacles, while 34.1% expected profitability to decline over the following three months.
The Canadian Federation of Independent Business reported weaker confidence in September, with its long-term Business Barometer index falling to 47.9. Businesses’ average planned price increases also rose to 3.3%, compared with 2.6% in August, as operators continued to manage higher costs.
Although the surveys cover different groups and periods, they provide context for Scotiabank’s findings. Business owners may remain confident in their individual prospects while taking a cautious approach to hiring, financing and expansion.
“Small businesses are central to the Canadian economy. Ensuring they can scale alongside the country’s broader investment agenda will be key to boosting productivity, strengthening exports and creating better jobs,” said Julien Champagne, Senior Economist at Scotiabank.
Franchise Operators Consider Acquisitions and Multi-Unit Growth
Franchising was among the sectors examined in Scotiabank’s recent discussions, with operators identifying acquisitions, multi-unit ownership and diversified business portfolios as potential approaches to growth.
According to the bank, franchise owners are navigating tariffs, higher input costs and supply-chain pressures that can affect food sourcing, operating margins and expansion decisions. These challenges have increased the importance of cash-flow management and operational efficiency when evaluating additional investments.
For established franchisees, acquiring an existing location can provide an alternative to developing a new store. An operating business may already have customers, employees and an established sales history, although buyers must also assess profitability, lease commitments, franchise agreements and potential capital improvements.
Multi-unit operators may be able to spread administrative, purchasing and management costs across several locations. The financial benefits depend on the performance of individual businesses, franchise agreements and the additional expenses associated with managing a larger portfolio.
For retail landlords and leasing professionals, the distinction between acquisitions and new store development is important. A transfer of ownership at an existing location may leave the overall retail footprint unchanged, while new locations and expansion into additional markets can generate leasing demand.
Technology Investment Focuses on Efficiency
Business owners are also considering technology investments to improve productivity, reduce administrative work and strengthen customer relationships. Scotiabank identified artificial intelligence, integrated payments, digital loyalty programs and personalized customer offers among the tools receiving attention from participating businesses.
For retailers and other consumer-facing operators, integrated payment and accounting platforms can reduce manual reconciliation and improve cash-flow visibility. Digital loyalty programs can support targeted marketing and repeat purchases, while AI applications may help streamline administrative processes and customer communications.
Scotiabank’s Pouya Zangeneh, Senior Vice President, Business Banking, said Canadian entrepreneurs are demonstrating adaptability as they evaluate ways to improve operations and build their businesses. His comments emphasized efficiency and specialized expertise as priorities for owners managing uncertain conditions.
The bank has not quantified technology adoption rates, spending levels or productivity improvements among participating businesses. Those measures would provide a clearer indication of the scale and financial impact of these investments.
Succession Planning Creates Ownership Opportunities
Scotiabank’s discussions with lawyers and accountants also identified increased interest in succession planning, estate planning and ownership-transition advice as business owners prepare for retirement.
For independent retailers and franchise operators, succession can involve transferring ownership to family members, selling to employees or completing a transaction with another operator. Acquisitions can allow established businesses to add locations and customer relationships without developing new stores.
The financial and real estate obligations associated with these transactions can be substantial. Prospective buyers may need to evaluate existing leases, outstanding liabilities, franchise agreements and the investment required to maintain operations.
Scotiabank has not provided transaction volumes associated with the succession activity discussed during its listening sessions. Its observations nevertheless identify ownership planning as an area receiving increased attention among business owners and professional advisors.
Growth Plans Require Financial Discipline
Across the sectors examined, Scotiabank found that business owners are emphasizing operational efficiency, specialized expertise and carefully evaluated investment opportunities.
For franchisees and independent retailers, expansion decisions must account for financing costs, operating margins, lease commitments and the capital required to maintain existing locations. Acquiring an established business may provide access to an existing operation, while new store development introduces construction, leasing and startup expenses.
The bank’s findings suggest that participating entrepreneurs continue to pursue opportunities despite economic uncertainty, although the scale of those investments has not been established.
For Canada’s retail and franchise sectors, completed acquisitions, new store openings and capital investment in existing operations will provide a clearer measure of whether the growth ambitions identified in Scotiabank’s research are translating into additional business activity.
