Charlottetown PE, November 3, 2025 – As the fall sitting of the Prince Edward Island Legislature begins, the Canadian Federation of Independent Business (CFIB) is highlighting both the progress achieved and the work that remains to ensure PEI's economy remains competitive and resilient for small businesses.
Small businesses across the province are facing ongoing challenges, with low optimism for both the short and long term. Recent data reveals that weak consumer demand is impacting 43% of small firms, shortages of skilled labour are affecting 42%, and sustained tax and regulatory costs pressures are weighing on 67%.
"Island entrepreneurs have shown tremendous adaptability through economic headwinds, but many still face sustained cost pressures, staffing challenges, and uncertainty," said Frédéric Gionet, Director for PEI and Atlantic, CFIB. "We've seen encouraging progress on several key files thanks to strong collaboration between government, the business community, and regional partners. Now we need to keep that momentum going."
CFIB commends the government for its united efforts to remove barriers to trade and mobility, including its support in eliminating Confederation Bridge tolls, progress toward interprovincial trade agreements, and ongoing work to modernize direct-to-consumer alcohol sales.
"These are concrete examples of leadership and cooperation in action," said Gionet. "They show what can happen when all levels of government align around the principle of freeing trade and empowering commerce."
In addition to progress on trade and regulatory modernization, CFIB also recognizes the steps taken to improve PEI's tax competitiveness, notably through the increase to the small business income threshold and the reduction of the general corporate tax rate.
"While PEI's general rate remains the highest in the country, these moves demonstrate genuine commitment to improving the fiscal environment for entrepreneurs," added Gionet. "To succeed in a national trading system that increasingly rewards competitiveness and scale, PEI must continue building a tax structure that allows its small businesses to grow and meet new, diversified market demands. We recognize the government's fiscal challenges, but fiscal balance does not preclude improving the competitiveness of our small business community."
CFIB's 2025 PEI Small Business Priorities report outlines several key areas requiring renewed attention and policy action during the Fall session of the PEI Legislative Assembly:
Frédéric Gionet, Director, PEI/Atlantic
Canadian Federation of Independent Business
C: 506-866-5548
frederic.gionet@cfib.ca
October Business Barometer®: October findings are based on 596 responses from a stratified random sample of CFIB members, to a controlled-access web survey. Data reflects responses received from October 1-7. Findings are statistically accurate to +/- 4.0 per cent, 19 times in 20. Every new month, the entire series of indicators is recalculated for the previous month to include all survey responses received in that previous month. Measured on a scale between 0 and 100, an index above 50 means owners expecting their business’s performance to be weaker over the next three or 12 months outnumber those expecting stronger performance. Next Barometer release is on November 20.
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. In Atlantic Canada alone, CFIB represents more than 10,000 members, over 900 of them in PEI, and collectively employ more than 124,000 people in the region (10,200 in PEI). CFIB advocates for policy change at all levels of government, provides expert advice and tools, and negotiates exclusive savings to help business owners succeed. Learn more at cfib.ca.