A new TD Insurance survey says more than 60% of B.C. small business owners reported direct financial challenges in the past year amid rising costs and weaker demand.
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A new TD Insurance survey indicates that most small businesses in British Columbia are still working through financial pressure, with more than six in ten owners reporting direct challenges over the past year.
The survey found that over 60% of B.C. small business owners said they faced direct financial challenges in the preceding 12 months. It also reported that 51% expressed concern about broader economic challenges and 57% said they were worried about continued direct financial strain, including rising operating costs, cash flow difficulties, and reduced demand from customers, according to the results described in the survey.
Tang Trang, vice president of small business insurance for TD Insurance, said small businesses are dealing with pressure on both sides of the equation—on the demand side, where customer spending is often constrained, and on the cost side, where expenses continue to climb. He framed the challenge as managing expenses while trying to sustain sales when customer demand is under pressure.
Multiple business-monitoring reports cited alongside the survey point to the same theme of weaker sales and spending. Xero’s small business insights (XSBI) report attributed a 1.7% year-over-year decline in second-quarter B.C. business sales to high gas prices. Moneris transaction data for the first quarter found year-over-year domestic spending in B.C. down 0.86%, attributing the shift to poor consumer sentiment.
Trang said uncertainty has been persistent for B.C. businesses and reflected a range of overlapping factors, including customers pulling back on spending. He also pointed to broader economic conditions, such as the impact of the COVID-19 pandemic on parts of the economy and consumer activity; high interest rates and a declining housing market; and rounds of tariffs. He noted other disruptions as well, including the war in the Middle East, and a subsequent round of tariffs.
Despite the concerns, Trang said TD Insurance is seeing signs of adaptation among many small firms. He said businesses have a better understanding of business risk and that owners are increasingly responding to uncertainty. According to his description, some companies are adding new products or services, entering new markets, and investing in talent, including hiring and purchasing equipment.
However, Trang also identified continuing gaps. He said many businesses report difficulty meeting financial challenges above $10,000, suggesting that while firms may be adjusting strategies, some still lack sufficient buffers or coverage for larger, unexpected costs. He recommended that businesses review insurance options to ensure they have adequate coverage for unforeseen circumstances.
TD said the survey was conducted between July 9 and 21 and included 401 Canadian small business owners. The study defined small businesses as companies with one to 500 employees and annual revenue up to $5 million, placing the findings in a segment of enterprises that often have less room to absorb cost increases or demand shocks.
For Vancouver and the broader B.C. economy, the findings highlight the practical strain facing a large portion of the small-business base, where cash flow, expense management, and customer demand interact. The survey’s results also suggest that any shift in broader economic conditions—such as fuel prices, consumer sentiment, or tariff impacts—may continue to ripple through local businesses’ ability to plan and invest.
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