Open for Business: Canada’s 2026 Municipal Report Card


CFIB’s 2026 Municipal Report Card compares 66 municipalities across Canada with the aim of identifying the most effective municipality in attracting and supporting small business growth. 

The report uses three core categories to grade each municipality’s conduciveness to small business growth and development: 

  1. Cost Burden
  2. Regulatory Burden
  3. Small Business Friendliness

In this first edition of the CFIB Municipal Report Card, Red Deer (AB) achieved the highest score of any municipality (7.33, corresponding to a grade of C+), followed Saskatoon (SK) (7.00, corresponding to a grade of C), and Strathcona County (AB) in third place (6.59, corresponding to a grade of C).

The lowest overall score within the report is 2.57, which translates to a grade of F. Across all 66 municipalities evaluated, the mean score is 4.79 and the median score is 4.82 - corresponding to a grade of F -, indicating that most municipalities fall near the midpoint of the grading distribution and are failing. 

With more than half of the municipalities evaluated in the report card failing to foster local conditions that attract new entrepreneurs and help existing businesses thrive, we strongly encourage every municipality to take concrete action to create a better environment for businesses regardless of their grade. 

2026 Municipal Report Card ─ categories, score, and grade (top 10 municipalities)1, 2

Municipality Cost Burden Regulatory Burden Small Business Friendliness Total Score Grade
Red Deer (AB) 5.6 9.5 6.5 7.33 C+
Saskatoon (SK) 8.7 5.5 6.5 7.00 C
Strathcona County (AB) 6.2 7.0 6.5 6.59 C
Toronto (ON) 8.1 5.0 6.7 6.57 C
Ottawa (ON) 8.4 5.0 5.7 6.51 C-
Oshawa (ON) 8.0 5.0 6.5 6.50 C-
Brampton (ON) 7.0 5.5 6.5 6.29 C-
Markham (ON) 8.1 4.0 6.5 6.13 C-
Waterloo (ON) 5.9 6.0 6.5 6.07 C-
Kitchener (ON) 5.9 6.0 6.5 5.85 D
  1. Score: 10 is best, 0 is worst. Using a weighting scheme, the four subindex scores are combined into a single score that allows for a ranking of municipalities from best (highest score) to worst (lowest score). The different areas are assigned the following weights: cost burden ─ 40%, regulatory burden ─ 40%, and small business friendliness ─ 20%.  
  2. Grade: A, A-: 8.7-10 (Excellent performance); B+, B, B-: 7.5-8.6 (Good performance); C+, C, C-: 6.0-7.4 Satisfactory performance); D: 5-5.9 (Less than satisfactory performance); F: 0-4.9 (Unsatisfactory performance).
Topics in this Article: