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STRENGTHENING BRITISH COLUMBIA’S BACKBONE: ENSURING ROBUST SUPPORT FOR SMALL BUSINESSES FOLLOWING THE COLLAPSE OF SMALL BUSINESS BC (2025)

2025
COVID-19 & Economic Recovery
Jobs & Labour

Issue

The unexpected bankruptcy of Small Business BC (SBBC) in December 2024 has left a significant gap in the support system for small businesses across the province. Small businesses account for 98% of all businesses in British Columbia, employing over 1.1 million people. Without tailored and robust support, this vital sector faces heightened challenges, which could impact the province's overall economic health and competitiveness.

 

Background

Small businesses are the backbone of British Columbia’s economy, contributing to job creation, community vibrancy, and economic resilience. According to recent data, small businesses in BC represent:

  • 98% of all businesses in the province.
  • Over one-third of all private-sector employment.
  • Significant contributions to innovation and local economic ecosystems.

Small Business BC, a non-profit organization established in 2002, provided essential resources such as one-on-one consultations, workshops, mentorship, and access to grants. While SBBC received $2.7 million in federal funding, it also received provincial funding, which contributed to the delivery of its wide range of services. Despite this support, SBBC declared bankruptcy in December 2024, raising concerns about oversight and the continuity of these critical services.

SBBC had a number of notable programs that have not yet been replaced. These included local delivery of training programs on topics like marketing, sales, finance, and export readiness; low-fee consulting and mentoring programs; and support for services like market research and grant discovery.

Chambers of Commerce and Boards of Trade across the province were often engaged as local delivery partners for SBBC’s programming, offering these services at a reduced rate in their communities.

SBBC also supported or managed key initiatives, including the Export Navigator program, the Small Business BC Awards, and partnerships with organizations like WeBC,[1] and provided centralized resources related to incorporation, business structure, and startup information.

The provincial government currently offers programs such as:

  • Small Business Programs: Resources like BizPaL for permits and licences, as well as support for mobile business licences.
  • Indigenous Small Business Resources: Support tailored to Indigenous entrepreneurs.

While these initiatives are beneficial, they do not fully address the personalized support and comprehensive services previously provided by SBBC. Small businesses need a coordinated and enhanced support structure to navigate challenges like inflation, labour shortages, and market competition.

 

THE CHAMBER RECOMMENDS

That the Provincial Government:

  1. Strengthen partnerships and leverage the existing strong and robust chamber of commerce network to deliver advisory consultations, educational workshops, mentorship programs, and networking opportunities, leveraging their established networks and expertise, where they are not currently available.
  2. Implement clear governance frameworks for small business support initiatives, ensuring financial oversight, measurable outcomes, and accountability in service delivery.
  3. Increase access to grants, low-interest loans, and financial incentives designed to foster innovation, resilience, and sustainable growth, with a streamlined application process that prioritizes small businesses.
  4. Fund targeted training programs in partnership with chambers and business associations to equip small business owners and employees with essential skills such as digital literacy, financial management, and strategic planning.