B.C. small businesses suffered worst sales decline in Canada, report states

A new report says B.C. small businesses suffered the worst sales decline in Canada in the last quarter of 2025.

The report by Xero Small Business Insights says that small business sales fell 8.2 per cent in B.C., which was double the national average of 4.1 per cent.

Business Improvement Areas of British Columbia says that small businesses are facing rising operating costs, declining consumer spending and ongoing public safety challenges.

The organization says that the B.C. government’s recent budget decision to expand the Provincial Sales Tax to cover additional services will further increase the cost of doing business.

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“The role of government is to enable and get out of the way and the challenge we’ve got right now is this government is not listening to businesses in B.C., they’re making their own decisions, and B.C. is inhibiting the expansion and vibrancy of business,” Jeremy Heighton with Business Improvement Areas of British Columbia told Global News.

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B.C.’s Jobs Minister Ravi Kahlon said he disagrees with the numbers in the Xero report, saying that Stats Canada numbers show that B.C. is leading the country in active businesses and retail sales.

“We always welcome more information,” Kahlon said. “We are leading the ease of doing business right now, we are chairing the national table to cut red tape across the country by allowing interprovincial trade, and we welcome any advice that friends in the business community have.”