Zensurance’s 5th Annual Small Business Confidence Index finds owners navigating economic pressures they cannot control while many remain exposed to business risks they can prepare for

TORONTO, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Canadian small business owners are under increasing financial pressure as rising costs, shrinking cash reserves and economic uncertainty continue to weigh on operations. Yet while many grapple with forces beyond their control, new research from Zensurance, Canada’s leading small business insurance provider, finds many are leaving themselves exposed to unexpected business risks, with 61 per cent of small businesses reporting that they operate without insurance coverage.

The findings come from the 5th Annual Zensurance Small Business Confidence Index, a national survey of 1,000 owners, entrepreneurs and self-employed professionals. Business confidence has now fallen for three consecutive years—from 70 per cent in 2024, to 58 per cent in 2025 and 49 per cent in 2026. Nearly half (47 per cent) have considered closing permanently at some point this year, and four-in-five are operating with three months of cash reserves or less.

Businesses Under Pressure
The economic pressures shaping this outlook are widespread. Three-in-five respondents (59 per cent) say the economy has negatively impacted their business since the start of 2026. Seventy-one per cent report that total operating expenses have risen compared to last year, 58 per cent say that rising gas and fuel costs have hurt their bottom line, and 43 per cent report that revenues are lower than in the first half of 2025. Despite all of this, nearly half still describe themselves as confident about the months ahead.

“Business owners cannot control inflation, tariffs or shifts in the economy, but they can prepare for unexpected events that could threaten everything they’ve built. Business insurance is one of the ways owners can help protect themselves against those setbacks,” said Danish Yusuf, CEO and Founder of Zensurance. “Our research suggests many businesses are focused on surviving today’s financial pressures while overlooking risks that could create even greater challenges tomorrow.”

Gap Emerges with Risk Awareness and Protection
While much of today’s uncertainty is beyond any business owner’s control, preparedness isn’t. Yet the survey reveals a significant gap in one of the few areas where businesses can take proactive steps to protect themselves. When asked to identify their most significant business risk, owners pointed to customer nonpayment for completed work (29 per cent), followed by cyberattacks or data breaches (14 per cent) and theft or vandalism (9 per cent). The findings point to a clear gap: Most businesses recognize the risks they face but continue to operate without coverage.

The insurance gap has widened significantly, with the share of businesses operating without coverage nearly doubling since 2024, rising from 33 per cent to 61 per cent — a jump of 28 percentage points in two years.

More telling than the number itself is the reasoning, with owners largely unconvinced that they need protection. Twenty-nine per cent say they don’t think they need insurance, 38 per cent say they don’t face the kinds of risks it covers and 22 per cent say their business has no risks at all.

On the Trade Front: “Buy Canadian” Movement Has an Uneven Lift
When asked whether the “Buy Canadian” movement has had a noticeable impact on revenues or customer demand, 17 per cent of business owners report a positive impact, including six per cent who say it has significantly increased Canadian customers. Thirty-eight per cent say the movement has made no difference, suggesting that its impact on small businesses remains uneven.

Cost Pressures Felt Across Every Province
Cost pressures vary across the country. In Atlantic Canada, 75 per cent point to gas prices as a challenge, well above the national average of 58 per cent. Ontario leads in identifying inflation as its top concern (38 per cent), while British Columbia reports the highest share of owners who have considered closing permanently at some point this year (57 per cent), compared to 39 per cent in Alberta.

TABLE 1: Financial Pressures Facing Canadian Small Business Owners, 2026

Finding	Total	BC	AB	ON	MB/SK	Atlantic	Gen Z	Millennials	Gen X
Economy has had a negative impact on business since January 2026	59%	59%	52%	60%	56%	60%	48%	62%	62%
Revenues are lower than the first half of 2025	43%	49%	41%	44%	39%	40%	28%	44%	47%
Total operating expenses have increased compared to last year	71%	75%	74%	70%	69%	76%	68%	70%	74%
Inflation is the single biggest business concern in 2026	35%	30%	31%	38%	24%	31%	36%	36%	35%
Raising prices without losing clients is a top concern	23%	26%	25%	22%	28%	25%	19%	23%	24%
Rising gas prices have had a negative impact on business	58%	55%	58%	58%	58%	75%	50%	59%	60%
Used personal credit cards or home equity to fund operations in 2026	39%	38%	37%	38%	49%	38%	43%	40%	38%
Have seriously considered closing permanently at some point in 2026	47%	57%	39%	43%	54%	53%	47%	45%	49%
No major changes planned if conditions worsen in H2 2026	32%	26%	39%	33%	27%	29%	31%	31%	33%
Have no business insurance	61%	61%	59%	60%	68%	62%	63%	59%	63%
Customer refusing to pay is the most significant business risk	29%	34%	31%	27%	35%	33%	35%	29%	28%

SOURCE: Zensurance Small Business Confidence Index, 2026

“Small business owners are often focused on the challenges they can see every day – costs, revenue and the economy – but the risks they cannot predict can have an equally significant impact,” said Yusuf. “Understanding where they may be exposed can help owners make informed decisions about protecting the businesses they’ve worked so hard to build.”

About the Zensurance Small Business Confidence Index
These findings are from a Pollfish survey conducted by Zensurance from June 5 to June 22, 2026, among a representative sample of 1,000 self-employed Canadian adults age 18-64. For comparison purposes only, a probability sample of this size would carry a margin of error of +/- 3.1 percentage points, 19 times out of 20.

About Zensurance
Founded in 2016, Zensurance is Canada’s leading source for small business insurance. Zensurance empowers small business owners, entrepreneurs, independent contractors and self-employed professionals across hundreds of industries to shop and get the specialized coverage they need in just a few minutes. Through their highly regarded client support team and network of over 50 insurance providers, Zensurance provides customers with business insurance as low as $11 per month and the confidence to thrive in today’s market. For more information, please visit www.zensurance.com and follow on X/Twitter, Facebook, Instagram, LinkedIn, and TikTok.

Media Contact

Julia Koichopolos
MAVERICK Public Relations
Julia@wearemaverick.com
416-938-2882

Small Business Confidence Hits Three-Year Low as Owners Face Rising Costs, Shrinking Cash Reserves, and Growing Business Risks