Canadian Small Business Health Index

The economic indicator for deeper Canadian Business Health insights

Canadian Small Business Health Index

The economic indicator for deeper Canadian Business Health insights

The Canadian Small Business Health Index — powered by the Business Development Bank of Canada (BDC) and Equifax Canada — 

innovates on business performance tracking by combining BDC’s Investment and Financing Outlook Survey (IFOS), data from Equifax Canada’s business credit database and macroeconomic data from Statistics Canada and the Bank of Canada, to provide a detailed picture of the resilience and outlook for for small- and medium-sized businesses (SMBs). 

The index complements existing indices and provides a uniquely novel quarterly snapshot of Canadian business health at the regional and national levels. 

The index groups four main components of business health:

  1. credit performance,
  2. business growth projection,
  3. business confidence sentiment, and 
  4. business environment.

The Canadian Small Business Health Index — powered by the Business Development Bank of Canada (BDC) and Equifax Canada — 

innovates on business performance tracking by combining BDC’s Investment & Financing Outlook Survey (IFOS), data from Equifax Canada’s business credit database and macroeconomic data from Statistics Canada and the Bank of Canada, to provide a detailed picture of the resilience and outlook for businesses. 

The index complements existing indices and provides a uniquely novel quarterly snapshot of Canadian business health at the regional and national levels. 

The index groups four main components of business health:

  1. credit performance,
  2. business growth projection,
  3. business confidence sentiment, and 
  4. business environment.

The National Index tracks the overall financial health of SMBs in Canada. After a sharp decline brought on by increasing interest rates, the index has been steadily improving since the end of 2023, reaching 97.5 in Q3 2024 – a 4.7% increase year-over-year.

This positive trend is supported by a recovering economy, fueled by the Bank of Canada's inflation target of 2% and recent cuts to its policy rate. This has led to improved business sentiment, with SMBs reporting a more optimistic economic outlook and better access to credit.

However, some challenges remain. Sluggish sales and cautious investment plans are limiting SMB growth projections. While SMB credit performance is trending upwards, it hasn't fully recovered from the impact of previously high interest rates.

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