A new survey reveals that nearly 7 in 10 small business owners in Canada have cut or completely eliminated their own salaries in 2025 to keep their operations running.
According to data from the Canadian Federation of Independent Business (CFIB), persistent inflation, high borrowing costs, and slower consumer spending are straining cash flow across most sectors. Many owners reported delaying equipment purchases, scaling back staff hours, and dipping into personal savings to cover business expenses.

The study underscores how financial pressure is shifting from employees to owners , with limited relief expected before 2026.

Business Impact for SMEs

For small firms, these findings highlight the urgent need to strengthen cash flow management and explore productivity-enhancing digital tools. Business owners may also consider reviewing loan structures, renegotiating supplier contracts, or joining collective purchasing programs to offset rising costs. Government support programs , such as CEBA replacements or provincial micro-grant funds ,  could also be crucial in preserving viability during prolonged tight credit conditions.