Small Business BC (SBBC) — a non-profit dedicated to helping entrepreneurs start and grow their businesses — last week declared bankruptcy and ceased operations, resulting in lay-offs for around 36 staff.

Founded in 2002, SBBC equipped business owners with essential information, tools, and resources. It offered a range of support through setting up consultations with experts, facilitating workshops and seminars, and administering programs — some of which were government funded. These included the Canada Digital Adoption Program, a federal initiative to help businesses adopt technology to improve efficiency and competitiveness, and Export Navigator, a provincial service guiding companies in expanding into domestic and international markets. 

The organization served more than 88,000 clients before its closure. In 2023, it distributed more than $20 million in grants to support businesses impacted by the COVID-19 pandemic, as well as $430,000 to help create inclusive and accessible workplaces for individuals with disabilities. This year, it received $3.6 million in June and an additional $2.7 million in November from the Pacific Economic Development Agency of Canada, a federal organization focused on promoting economic growth and diversification in B.C.

SBBC filed for bankruptcy on Dec. 5, appointing the consumer insolvency firm MNP as its trustee. Financial statements revealed that operating costs increased from $3.34 million in 2019 to over $7.04 million by 2023. The organization reported a deficit of $37,604 last year, compared to a surplus of $496,118 the previous year.

Employees were notified of the decision during a Zoom meeting and given a letter. It was further reported that they "will not be collecting a final paycheck, were not given any severance or outstanding holiday pay, and were told to apply for employment insurance." 

In an unrelated press conference on Monday, Premier David Eby stated that his staff were aware of SBBC’s financial difficulties and had attempted to assist the organization. Eby added that the provincial government is now working on ensuring the allocated funding is recovered and that employees are looked after.

Following the news, members of B.C.'s business community took to social media to spotlight the importance of SBBC’s work. Keith Ippel, co-founder of Spring Activator — an impact-driven venture capital firm — underscored that organizations like SBBC are the backbone of entrepreneurial ecosystems.

“Ecosystem support organizations (ESOs) often face the unenviable task of securing funding from donors and sponsors to support early-stage and small businesses,” he wrote. “These businesses deeply value the assistance but may not yet be in a position to pay full price for it. [...] As we approach 2025, this closure might serve as a wake-up call to rethink how organizations are funded and how businesses receive support.”

As for the repercussions of SBBC closing its doors, Carlos López Sandoval, a partnership manager at JA Canada — a non-profit that delivers educational programs to prepare youth for entrepreneurship — highlighted the growing problem it worked to address.

“SBBC was my first full-time employer in Canada,” he shared. “It’s where I reflected on the vital role ESOs play in helping early-stage and small businesses thrive. Their closure leaves a significant gap in the entrepreneurial ecosystem in B.C., where 98 percent of businesses are small businesses, especially at a time when entrepreneurs are already navigating tough economic realities.”

According to the Canadian Federation of Independent Business, which represents small and mid-size enterprises, over 30 percent of small businesses in B.C. are reported to be “in weak or critical financial health.”

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