QUESTION PERIOD — Innovation, Science and Economic Development
Small and Medium-Sized Businesses
October 22, 2026
Government leader, as you know, this week is Small Business Week, spotlighting the hard-working small- and medium-sized businesses that make up 99.7% of employer businesses in Canada.
The Standing Senate Committee on Banking, Commerce and the Economy recently published a report titled From Potential to Prosperity: The urgent case for greater investment in Canada’s SMEs. I had the great privilege of being part of that study. We called on 35 witnesses, and they made it very clear that business investment in Canada has collapsed from 14% of GDP in 2014 down to 11% in 2024. A more competitive tax framework is urgently needed to free up capital for hiring, training and equipment.
The government has taken small steps, but will it commit to going further to improve the small business tax break and fully implement the committee’s recommendations?
I can repeat my answer to Senator Loffreda’s question today. The government understands perfectly that small- and medium-sized businesses, or SMEs, are the backbone of the Canadian economy, and that’s the reason why they’re acting on many topics to help improve the economic situation of small- and medium-sized businesses.
I mentioned a $7.5 billion new, agile measure to support Canadian SMEs. This builds on the $7.5 billion, which builds on the $25 billion in support that the government has implemented since it took office.
I think that is a pretty clear commitment to help SMEs here in Canada. Of course, the government is committed to continuing to help businesses, because, obviously, they are the backbone of our economy.
I appreciate some of those measures, but, obviously, the federal tax programs and application processes remain very complex for smaller firms to navigate. Will the government also commit to simplifying access, cutting red tape and delivering real tax relief, including the measures that you’ve mentioned, to really target what we can do for small businesses?
Well, generally speaking, we are working on red tape. Senator Petten is sponsoring Bill S-7, which the Senate will study. I don’t know if I can tell you precisely if there are measures in there targeting small- and medium-sized businesses. It is obvious that the government is committed to helping businesses in Canada. Thank you for the suggestion.
