Manitoba budget offers limited help for small businesses amid rising costs

 Entrepreneurs needed cost relief, but many will not find it in the 2026-27 Manitoba budget 

Winnipeg, March 24, 2026 – The Canadian Federation of Independent Business (CFIB) says today’s Manitoba budget falls short of what small business owners needed as they continue to face mounting financial and operational pressures.

“Manitoba entrepreneurs have been dealing with increasing costs, ongoing workforce challenges, and significant uncertainty around future expenses,” said Tyler Slobogian, Senior Policy Analyst, Prairies & the North. “Today’s budget was a chance to restore predictability and strengthen the province’s competitiveness, but many business owners will feel the government didn’t go far enough.”

CFIB survey data shows that Manitoba small businesses continue to struggle with rising input costs, higher energy bills, and a high tax burden that limits their ability to invest in their business, hire, and plan for the future. Many are still suffering from the past year of economic uncertainty surrounding the trade-war, with two-thirds of Manitoba businesses reporting they have been directly or indirectly affected by tariffs, all while long-term confidence continues to drop.

“CFIB appreciates that the province avoided introducing new costs for small firms, extended the Business Security Rebate Program, and ensured that strong fiscal management is a priority by reducing the deficit. However, practical measures to support investment and growth for small firms remain absent.”

According to CFIB’s latest Business Barometer®, 40% of small business owners report the shortage of skilled labour as their biggest limitation for growth. CFIB supports the few workforce development programs in this year’s budget such as the Build Up Manitoba Program, which will provide $4 million to help SMEs upskill and train their employees.

Across Canada, we are seeing concerning evidence of an entrepreneurial drought. Manitoba mirrors this trend, with owners increasingly hesitant to expand, hire, or invest. CFIB data shows the province has now recorded six consecutive quarters where business exits outpaced new business entries, a clear sign of declining confidence. Over half of Manitoba business owners say they would not recommend starting a business today.

“Entrepreneurship has always been a strength in Manitoba, but the environment right now is discouraging new business creation,” added Slobogian. “"With more businesses closing than opening, government must take these signals seriously.”

One example CFIB has been calling for from the province, would be to increase small business corporate income tax threshold to $700,000. For the average Manitoba business earning over $500,000 in net income, savings would be $24,000 annually. CFIB estimates the total cost to government would be about $15.5 million annually or 0.063% of this year’s projected revenues, while returning the same amount in cumulative savings to businesses across the province, allowing almost 2,000 businesses, or 8% of the total business count in Manitoba, to further invest in their operations and the local economy.¹

On the investment side, the inability to fully write off the province’s sales tax on capital purchases, something businesses can do in most other provinces, remains a key barrier preventing small businesses from investing in the economy. Exempting all capital expenditures — including machinery and equipment — in every sector from the retail sales tax (RST) would help firms modernize, expand, and increase productivity. According to our recent Capital Investment Report, this would help the province generate $332 million in small business investment.

“These are practical, achievable steps that would immediately help small firms reinvest in their operations,” said Slobogian. “We needed to see a budget that focused on affordability, investment, and stability, to give entrepreneurs the confidence they need to grow. Unfortunately, we didn’t see much of that today”.

For media enquiries or interviews, please contact:

Tyler Slobogian, CFIB

204-979-1787

Tyler.Slobogian@cfib.ca

About CFIB

The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 100,000 members across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.