More than one-quarter of self-employed Canadians plan to expand their businesses over the next 12 months, with Alberta entrepreneurs reporting the strongest growth intentions in the country, according to new Statistics Canada data.
The July 2026 survey found that 27.6 per cent of self-employed workers intended to expand their businesses, more than three times the 8 per cent who planned to scale down, close their businesses or stop working. However, the findings also point to challenges involving client acquisition, financial security and access to employee-style benefits.
The results are based on a supplement to Statistics Canada's Labour Force Survey conducted in July 2026, examining the experiences and circumstances of self-employed Canadians aged 15 to 69.
Alberta leads in business expansion plans
An average of 2.7 million Canadians were self-employed in their main jobs during the first nine months of 2026, representing 12.9 per cent of the employed population aged 15 and older.
The self-employment rate has remained unchanged since 2024, following a decline from 15.1 per cent in 2020 to 13 per cent in 2023. Statistics Canada reported that the proportion of self-employed workers operating incorporated businesses, with or without employees, reached 48.9 per cent during the first nine months of 2026.
Among self-employed Canadians, 11.3 per cent planned to expand by hiring employees, while another 16.4 per cent intended to grow without adding staff. By comparison, 4.2 per cent planned to scale down their operations and 3.8 per cent expected to close their businesses or stop working.
Expansion intentions varied by industry. Finance, insurance, real estate, rental and leasing businesses had the highest proportion of self-employed workers planning to expand, at 33.6 per cent. Construction followed at 30.3 per cent, while professional, scientific and technical services recorded 28.8 per cent.
The lowest proportions were in health care and social assistance, at 19 per cent, and transportation and warehousing, at 22.8 per cent.
At the provincial level, Alberta had the highest proportion of self-employed workers planning to expand, at 35.1 per cent, followed by British Columbia at 29.2 per cent. The Atlantic provinces combined recorded the lowest proportion, at 22 per cent.
Finding new clients becoming a greater challenge
While expansion plans remain relatively strong, the survey identified growing difficulties for self-employed workers seeking new customers.
In July 2026, 19.4 per cent disagreed with the statement that it was generally easy for them to find new clients. That represented an increase from 13.2 per cent in 2022 and 16.2 per cent in 2025, continuing an upward trend recorded in recent years.
The challenges were not evenly distributed. Landed immigrants who were self-employed were more likely to report difficulty finding new clients, at 25.7 per cent, compared with 15.8 per cent of self-employed workers born in Canada.
Men were also more likely than women to report difficulties, with 21.6 per cent disagreeing that finding new clients was easy, compared with 15.8 per cent of women.
Statistics Canada noted that some of the difference was related to industry composition. Self-employed men were less likely than women to work in health care and social assistance, accounting for 5.9 per cent of self-employed men compared with 21.7 per cent of self-employed women. In that industry, 10 per cent of self-employed workers said finding new clients was not easy.
Autonomy remains the leading reason for self-employment
The survey also examined why Canadians choose self-employment, distinguishing between opportunity-related motivations, such as greater independence and earning potential, and necessity-related reasons, such as difficulty finding paid employment.
Opportunity-related factors remained the most common motivations in July 2026. Having autonomy and control over work hours, wage rates or work location was the leading reason, cited by 36.8 per cent of respondents.
Another 14.7 per cent identified doing work they were passionate about as their main motivation, while 12 per cent said they wanted to work in their field of expertise.
By comparison, 5.8 per cent said their main reason was being unable to find employment as an employee, while 1.6 per cent cited losing a job as an employee.
There were notable differences depending on the structure of the business. Unincorporated self-employed workers without employees were nearly four times as likely as incorporated self-employed workers with employees to say they were self-employed because they could not find employee work, at 8.6 per cent compared with 2.2 per cent.
Meanwhile, incorporated self-employed workers with employees were nearly three times as likely to identify the potential to earn more money than they could as an employee as their main motivation, at 12.7 per cent compared with 4.5 per cent among unincorporated workers without employees.
Professional, scientific and technical services accounted for the largest share of self-employed workers, at 18 per cent during the first nine months of 2026. Construction represented 13.4 per cent, followed by health care and social assistance at 12.7 per cent.
Compared with the 2022 average, the share of self-employed workers in health care and social assistance increased by 1.6 percentage points to 12.7 per cent in 2026, while transportation and warehousing rose by one percentage point to 7.9 per cent. Agriculture and construction recorded declines of 1.1 and 0.9 percentage points, respectively.
Insurance coverage remains limited
The findings also highlight differences in access to supplementary health, dental and disability insurance between self-employed workers and employees.
In July 2026, 39.4 per cent of self-employed workers reported having supplementary health-care coverage, while 33.3 per cent had dental insurance and 22.9 per cent had disability insurance.
Among employees, 63.8 per cent had access to medical or dental benefits through their jobs, while 52.8 per cent had disability benefits.
Coverage also varied by gender. Self-employed women were more likely than men to have supplementary health-care coverage, at 44.8 per cent compared with 36.2 per cent, and dental coverage, at 36.9 per cent compared with 31.2 per cent. Disability insurance coverage was virtually identical, at 23 per cent for women and 22.9 per cent for men.
The higher coverage rates among women were partly attributable to access through family members' benefit plans. Some 27.8 per cent of self-employed women reported health-care coverage through a spouse, partner or family member, compared with 18.9 per cent of men.
Immigrants who were self-employed also reported lower insurance coverage than their counterparts born in Canada. Supplementary health-care coverage stood at 30.9 per cent among self-employed immigrants, compared with 45 per cent among those born in Canada. Dental coverage was 27.6 per cent versus 37.3 per cent, while disability insurance coverage was 17.3 per cent compared with 26.8 per cent.