Canadian business formation is struggling to regain its footing—and the latest numbers from Cleanlist confirm it. June saw just 17,777 new businesses open, continuing a steep year-over-year decline. That’s 40.4% fewer than the 29,818 recorded in June 2024.
And it’s not just the slowdown in new openings that’s concerning.
Business closures surged to 42,616 in June, marking the second-highest monthly total in the past 12 months. That puts the net business change for June 2025 at -24,839—a stark reversal from the net gain of +20,227 seen in the same month last year.
In short, we’re not just treading water—we’re sinking.
What’s driving the downturn?
It’s likely a mix of factors:
- Donald Trump & US trade policy is clearly hurting Canada’s businesses.
- Tight credit markets and high interest rates are making capital harder to access.
- Cautious consumer spending is softening demand for everything from services to durable goods.
- And regional pressures, particularly in high-cost urban areas, are squeezing small business margins.
By the Numbers – June 2025
- 📈 New businesses created: 17,777
- 📉 Businesses closed: 42,616
- ➕ Net change: -24,839 active businesses
- 📊 Total active businesses in Canada: 3,061,153
💼 What This Means for Marketers and Data-Driven Pros
If you’re targeting Canadian businesses, especially SMBs, it’s critical to:
- Focus on active, growing firms—not just any listing in a database.
- Monitor business lifecycle signals to identify emerging opportunities.
- Validate your lists regularly to avoid wasted effort on defunct entities.
Cleanlist’s ResponseCanada™ Business database helps you stay in the know, in real-time.
🔍Want to Reach Canada’s Newest Businesses?
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