A new survey from EQ Bank suggests Canadian solopreneurs are feeling the strain of global trade instability and economic uncertainty, with many reporting challenges that rival those experienced during the pandemic.
The national survey, conducted by EQ Bank among members of the Angus Reid Forum, found that more than half (51 per cent) of solopreneurs say the current global trade environment is having an equal or greater impact on their business than the aftermath of COVID-19. Nearly one in four (24 per cent) worry about their financial future, and one-third (32 per cent) say they at least occasionally contemplate closing their business.
Dan Broten
“Today’s environment is putting immense pressure on many solopreneurs and small business owners who are adapting to new realities in trade, costs and competition every day,” said Dan Broten, senior vice-president and head of EQ Bank. “Their contribution to Canada’s economic fabric is enormous, and it’s important we continue to find innovative ways to better support them. For EQ Bank, that meant designing a business banking platform nimble enough to meet their rapidly changing realities with the value they deserve.”
According to the survey, 30 per cent of respondents view evolving trade relations with the United States as an existential threat to their operations. Respondents cited sourcing materials, pricing products, planning for growth and managing sales among the most difficult tasks in today’s economic climate.
Nearly two-thirds (60 per cent) said they do not feel recognized as business owners to the same extent as those running larger operations, and more than half (51 per cent) said they do not feel valued as the backbone of the Canadian economy.
The report also found that misconceptions persist about self-employment. Respondents said others often assume they can take time off whenever they want (63 per cent), make a lot of money (61 per cent) or have total control of their schedules (56 per cent).
Financial strain and long hours were also common among solopreneurs. More than one-third (38 per cent) said they mix their business emergency fund with personal savings, while another 33 per cent said they have no emergency fund or rely entirely on credit. More than half (59 per cent) said they took on personal or business debt to start their ventures.
More than a quarter (27 per cent) estimated they earn less than $17.20 per hour, and nearly one in five (18 per cent) said they earn less than $9 per hour. The survey also found a gender pay gap, with women estimating their average hourly earnings at $39.50 compared with $47.90 for men.
Cathy Ly
Cathy Ly, vice-president of small business banking at EQ Bank, said traditional financial institutions often fail to meet the needs of one-person businesses. “There’s a clear gap between the traditional banking tools available to them and the level of support they need to thrive,” Ly said. “Canada’s solopreneurs, and the entire small business community, deserve financial tools that actually help them grow their money and give them back time – perhaps their most precious resource – to run their business.”
Despite the challenges, nearly seven in 10 (69 per cent) respondents said they would still choose to start their business again, knowing what they know now about the economy. The top sources of pride among solopreneurs included being their own boss (64 per cent), bringing their passion to life (43 per cent) and earning more than in traditional jobs (37 per cent).
“Even in the face of these headwinds, determination and pride continue to define Canada’s small business community,” Ly said. “Through countless conversations with customers, we heard their ambitions firsthand – and the frustrations they’ve faced along their path. That’s exactly what inspired us to enter the business banking space and continues to drive us to innovate and challenge the status quo on behalf of small business at EQ Bank.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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