As we navigate through the economic and political uncertainties between Canada and the United States, Canadian entrepreneurs are entering a transformative period. With global supply chains shifting, cross-border tariffs rising, and policy redirections reshaping trade and immigration, many are asking: Is now a good time to start a business in Canada? The answer depends on your approach, resources, and understanding of what the Canadian economy truly needs.
Why Canada Still Offers a Great Landscape for Entrepreneurs
Despite rising tensions with its largest trade partner, the U.S., Canada remains one of the most business-friendly countries in the world. Here’s why:
1. Stable Legal Framework and Business Infrastructure
Canada ranks high globally in ease of doing business. Incorporating a business is straightforward, with federal or provincial options available via online portals. Legal protections for business owners, including limited liability and transparent tax structures, are robust.
2. Supportive Government Programs
Canada offers a range of programs for new entrepreneurs:
- Startup Visa Program (SUV) – While currently delayed in processing, it still provides a legal route for foreign entrepreneurs.
- IRAP (Industrial Research Assistance Program) – Supports tech innovation.
- Canada Digital Adoption Program (CDAP) – Helps small businesses embrace digital tools.
3. Access to Skilled Workforce
Canada’s immigration policies, though slower post-pandemic and under scrutiny, still attract skilled global talent through express entry and work permits. Universities are producing high-quality grads in fields like AI, healthcare, fintech, and engineering.
The Challenges You Shouldn’t Ignore
Starting a business in Canada isn’t without hurdles—especially in 2025:
1. Cross-Border Trade Tensions
With potential 25% tariffs under a returning Trump administration, Canadian businesses relying on exports to the U.S. could face steep obstacles. This makes export-heavy businesses risky.
2. Immigration Delays
IRCC backlogs in 2024–2025 have affected labor access, particularly for tech and service sectors. Companies trying to onboard international talent are waiting months—sometimes years.
3. High Cost of Living
Cities like Toronto and Vancouver are expensive, which can make staffing and operations costlier for startups.
Best Businesses to Start in Canada in 2025
In response to market changes, consumer behavior, and policy shifts, here are five of the most promising business ideas for 2025:
1. Local Manufacturing and Assembly
With increased U.S. tariffs and “Buy American” policies, Canada needs to reduce its dependency on imported goods. Setting up a local manufacturing unit—especially for electronics, auto parts, or green technologies—can fill this gap.
2. AI-Powered SaaS and Automation Tools
Canada is heavily investing in artificial intelligence. Creating tools that help small businesses automate tasks like bookkeeping, CRM, or HR can find immediate traction.
3. Sustainable Packaging and Eco-Friendly Products
With growing climate consciousness and government incentives, businesses that offer biodegradable packaging, reusable household products, or green consulting are poised to grow.
4. Localized Logistics & Courier Aggregators
With supply chain restructuring, there’s space for efficient last-mile logistics services. Launching an AI-driven logistics platform or app—especially one combining local delivery and carpooling like “RideRush”—is timely.
5. Remote Work Hubs and Coworking Spaces
In a post-pandemic hybrid work world, small towns and suburbs need shared office spaces. Platforms like Kangrooo.com, which help businesses book coworking and meeting spaces, are addressing this demand.
How To Start a Business in Canada in 2025
Step 1: Choose Your Business Structure
- Sole proprietorship: Easiest, but you’re personally liable.
- Incorporation: Federally or provincially, protects personal assets.
Step 2: Register Your Business
- Use online portals like Corporations Canada or your province’s registry.
Step 3: Apply for a Business Number (BN)
Needed for taxes, payroll, and import/export activities.
Step 4: Open a Business Bank Account
Major banks offer tailored startup accounts with minimal fees.
Step 5: Secure Permits and Licenses
These vary by province and industry—check with local business centers.
Funding Sources in 2025
- BDC (Business Development Bank of Canada): Startups and scale-ups.
- Export Development Canada (EDC): For businesses looking beyond Canada.
- Venture Capital and Angel Investors: Toronto, Vancouver, and Montreal remain key hubs.
- Crowdfunding: Still a viable option through Kickstarter or FrontFundr.
Conclusion
Starting a business in Canada in 2025 is both a challenge and an opportunity. The country is well-positioned to lead in sustainability, AI, and manufacturing—but entrepreneurs must navigate government delays, trade complexities, and labor shortages.
If done right, this uncertain era may become the most opportune time in a generation to create something impactful. After all, innovation often emerges strongest in times of disruption.
