Canadian entrepreneurs are focusing on growth again after many paused expansion plans amid years of economic uncertainty and a trade war with the United States, according to a new report from the Business Development Bank of Canada. 

In a survey of 2,500 owners of small- and medium-sized businesses across Canada, 78 per cent said they have ambitions to grow, up from 67 per cent last year. Expansion overtook improving profitability as the most cited priority, even as more businesses reported struggling with U.S. tariffs and increasing competition. 

The findings suggest entrepreneurs are looking for new ways to expand their businesses despite continued uncertainty about trade with Canada’s largest export market. 

Among businesses directly affected by tariffs, 47 per cent said they gained customers in new Canadian markets over the past year, while 26 per cent attracted customers outside the U.S. 

Many have diversified their customers and changed suppliers in attempts to overcome the barriers, and they’re also using more technology and spending more on training to boost productivity, according to the BDC survey. 

Even some businesses not directly affected by tariffs have changed their expansion plans. Cedar-Built Greenhouses, an Abbotsford, B.C., company that sells greenhouse kits, told BDC its U.S. sales fell 30 per cent even though its products weren’t subject to tariffs. CEO Scott Frost had considered expanding exports beyond the U.S. for years when the tariff threat gave those plans new urgency. 

Businesses are also changing where they buy. Fifty-four per cent started working with new suppliers over the past year, rising to 72 per cent among tariff-affected businesses. 

Improving profitability was the second most common goal for entrepreneurs, after expansion, with 40 per cent of respondents citing it as a priority. More businesses have taken steps to improve their productivity, with 88 per cent saying they’ve done so in 2026, compared to 74 per cent in 2025. Twenty-eight per cent said they increased employee training and the same share expanded their use of technology. Adopting or increasing the use of AI ranked among the priorities of 22 per cent of businesses (28 per cent of those hit by tariffs), up from 14 per cent last year. 

While businesses are focused on growth, they also warned of mounting pressures: 29 per cent cited U.S. tariffs as a major challenge, up from 19 per cent in 2025, while 31 per cent said competition was a main challenge, compared to 24 per cent last year. BDC noted that as competition intensifies and demand remains sluggish, businesses said they are working harder to stand out, whether by improving the quality of their products and services, adjusting prices or strengthening marketing.