Private businesses are at the heart of Atlantic Canada’s economy. Across the four Atlantic provinces, the business community thrives on collaboration, working together to make the region a great place to live, work, and enjoy.
This report summarizes discussions hosted by Doane Grant Thornton LLP, where community leaders from across the region shared their experiences, challenges, and opportunities. It reflects insights from over 200 participants who share a common goal: build on the thriving economy in Atlantic Canada.
In our many discussions, we were inspired by the forward-thinking and collaborative mindsets of our Atlantic Canadian business leaders. This report provides a comprehensive snapshot of the innovation, resiliency, and vibrancy within our business community and encourages deeper conversations to drive change.
*To protect the privacy of the business leaders involved in these conversations, all quotes are anonymous. Some quotes may have been edited for clarity and brevity but have remained true to the original sentiment.
Behind every business are people—a business depends on them to operate, deliver, and support growth while carrying out its mission and purpose. But finding dependable talent is becoming more difficult for businesses across Atlantic Canada as 74% of the region’s small businesses are affected by labour shortages, according to a recent report from the Canadian Federation of Independent Business. Almost half (44.5%) of Canadian businesses have experienced difficulties finding candidates who possess the skills needed to do a job at a required level, according to a recent Statistics Canada report. Respondents shared businesses are further challenged by shifting expectations and demands from employees as well as looking outside local talent pools to fill key roles. The impact of these factors stretches beyond the business landscape to affecting population growth and the vibrancy of cities and communities.
After a tough battle to bring inflation down in Canada, it feels like the economy is entering a new era as interest rates are on the decline and growth is picking up. However, there are increased concerns around the impact the new US tax policies could have on the Canadian economy.
For the first half of 2024, the Bank of Canada reported growth across the country, with a prediction that the GDP will gradually continue to rise based on an expected increase in consumer spending, supported by lower interest rates. But, with shifting tax policies and the continued thread of tariffs between the US and Canada, in 2025, businesses will have to continue to be agile to remain competitive.
Atlantic Canada has long been a bustling hub for trade and commerce, relying on its ports, transportation networks, and close ties to global markets. However, the knock-on effect of the pandemic and global geopolitical unrest, compounded with nuanced risks related to climate change and sustainability concerns, and barriers to interprovincial trade has contributed to supply chain disruptions that are creating challenges for businesses across the region.
To function well, supply chains depend on the free flow of goods and services across borders. Any barriers, risks, or added costs to the movement of goods and services will decrease the benefits derived from international supply chains and directly impact the businesses and local economies that depend on trade. Looking ahead to the threat of increased tariffs, Atlantic Canadian businesses must find ways to adapt and strengthen their supply chains to remain competitive.
Governments significantly affects how a business conducts business. With the pace of change in federal and provincial governments, the environment has become even more uncertain at the start of 2025.
Many respondents agree business owners must proactively and regularly engage with all levels of government and should make it a top priority. Yet 45% of Atlantic Canadian businesses say their municipality is not small-business friendly, according to the 2024 CFIB Atlantic Municipal Report. During our discussions across the region, business leaders shared the most significant challenges associated with government relations included new regulations imposed on the fishing and automative industries, increasing property tax, and the lack of affordable housing. While some of these leaders feel the government doesn’t interact enough with the private sector, rallying the business community under shared challenges can bring a larger voice to the table.
Given the unpredictable nature of the business landscape, many local businesses have had to focus on immediate priorities, making long-term planning more challenging. However, a business of any size can’t ignore the opportunities and the competitive advantage adopting new technologies can bring. In addition, many respondents shared their concerns about what will happen when it comes time to retire. The lack of proper succession planning has emerged as a major challenge that could potentially impact the continued success of their business.
Over the next two decades, an estimated $170 trillion ($124 trillion USD) in assets will be passed down from the silent generation and baby boomers to their family, contributing to “the great wealth transfer,” according to a report by Cerulli.
Women are shaping the future of business as owners, leaders, and employees at all levels. They’re continuing to break through harmful stereotypes and prejudices as trailblazers creating an equitable environment where everyone can belong. Approximately 50,400 self-employed women business owners currently exist in Atlantic Canada—over 73.2% of them (36,900) are solo entrepreneurs, according to the Centre for Women in Business. Across private sector businesses in Canada, majority women-owned businesses accounted for 19.6%, according to a recent report from Statistics Canada. In our regional discussions they talked about the challenges women face in the workplace like bias, inadequate support, and burnout, as well as caregiving responsibilities outside of the workplace.
Women bring different things to the table like empathy and vulnerability—it’s how they lead and want to be led. While critical to creating a positive culture, some workplaces and even industries do not foster environments that value such qualities. In our conversations, many women shared experiences with bias in the workforce as well as the challenge of trying to find mentors to support their goals. Others said there’s been a noticeable generational shift as women in leadership roles have previously had to adapt to the traditional way of doing business but now millennials and Gen-Xers rising into leadership roles are making work more human-centric.
Together, we can continue to elevate Atlantic Canada’s business community, encourage new investment, and compete nationally as well as globally.
Opportunities are amplified when the business community comes together, and we’re looking forward to following these conversations in 2025 and beyond as new governments come into play, advancements are made in technology, and the business community continues to collaborate.
We’re closely monitoring policy changes and can help you navigate challenges and unlock opportunities. For more than 85 years we’ve helped Atlantic Canadian businesses grow, transition, and thrive-and we’re just getting started. Reach out to your advisor for support.
