May 2025 New Business Snapshot: Trouble in the Trenches?
After signs of a rebound in April, May’s new business formation numbers took an unexpected dive—dropping to the lowest level we’ve recorded in more than a year. At the same time, closures surged, painting a concerning picture for Canada’s entrepreneurial landscape.
Let’s unpack the numbers.
New Business Creations Slump
In May 2025, just 9,964 new businesses were created across Canada—a steep drop from 21,154 in April and well below the 12-month average of 21,544. This marks the weakest performance since early 2023 and reverses the upward trend we saw in Q1.
We’re seeing slower starts across nearly every province and industry category. It could signal mounting caution among entrepreneurs in the face of tighter credit conditions and uncertain economic outlooks.
Business Closures Surge
Meanwhile, 37,169 businesses closed in May—more than triple the number from April and the second-highest figure we’ve seen since we began tracking. This spike follows a sharp but temporary drop in closures in April and continues the erratic pattern that’s defined 2025 so far.
Closures are hitting small service businesses and early-stage ventures particularly hard, with high exit rates in retail, personal services, and hospitality.
By the Numbers – May 2025
- 📈 New businesses created: 9,964
- 📉 Businesses closed: 37,169
- ➕ Net change: -27,205 active businesses
- 📊 Total active businesses in Canada: 3,068,565
💼What This Means for Marketers and Business Builders
Whether you’re in B2B sales, commercial real estate, or marketing services, staying on top of business lifecycle data is more critical than ever.
The Cleanlist database is continuously updated with real-time insights into Canada’s business landscape—including new openings, recent closures, and firmographics like industry, revenue, and contact info.
🔍Want to Reach Canada’s Newest Businesses?
Ask about a free data assessment from ResponseCanada™ Start-ups and see how easy it is to get in front of Canada’s newest and most active buyers.
