Canadian Entrepreneurship Drops 39% in Q1 as 60-Day Lender Delinquencies Rise to 3.83%
Updated
Updated · Investment Executive · Jun 9
Canadian Entrepreneurship Drops 39% in Q1 as 60-Day Lender Delinquencies Rise to 3.83%
1 articles · Updated · Investment Executive · Jun 9
Summary
122,107 active young Canadian businesses remained in Q1 2026, down from 199,062 a year earlier, marking a nearly 39% drop in entrepreneurship.
Equifax linked the decline to escalating operating costs, persistent inflation and broader macroeconomic pressure that are eroding business viability and discouraging new starts.
3.83% was the national 60-plus-day delinquency rate on loans and credit lines in Q1, up more than 11% year over year, even as the number of delinquent companies fell more than 10%.
4.32% was the 60-plus-day delinquency rate for industrial trades, down more than 26%, suggesting firms are prioritizing supplier payments while struggling more with bank debt and longer-term borrowing.
3.98% delinquency on instalment loans overtook business credit cards at 3.86%, reinforcing Equifax's view of a widening split in business credit stress beyond just newer firms.