CHARLOTTETOWN – While many small business owners across Canada are considering getting out brick-and-mortar retail amid rising costs and uncertainty, Craig Enman is getting back to in-person sales on P.E.I.
Enman opened Distinctive Decor’s Treasure Hut at Charlottetown’s Confederation Court Mall in August. It is not his first foray into running a storefront. For 15 years, he operated a silver and gemstone jewellery business with several locations in Nova Scotia. But navigating changing shopping habits and battling competition from major retailers such as Amazon and Walmart, led him to close it.
Still, he was not ready to give up on the industry.
“There’s always a risk,” Enman said. “It’s financial. It’s work. It’s a lot of effort. But this is what I wanted.”
Inside his new shop, shelves are lined with fine porcelain, crystal, one-of-a-kind antiques and collectibles. It’s a place built for browsing and discovering the beauty of the past.
But Enman acknowledges the present is not an easy time for entrepreneurs.
“Cost of living is on everybody’s mind,” he said. “But it’s also the uncertainty in the marketplace. The Canada-U.S. relationship isn’t going the best.”
Trade tensions and expenses lead to closures
According to estimates released Thursday by Statistics Canada, the number of active businesses on P.E.I. dipped slightly, from 4,195 in June to 4,182 in July. Openings fell from 228 to 217, while closures rose from 218 to 226.
A similar pattern played out nationally. The number of active businesses across Canada declined by 400 to 937,821. Openings fell by 1,444, while closures edged up by 106.
The figures offer a snapshot of July rather than current conditions, but the Canadian Federation of Independent Business (CFIB) says they fit into a longer-running trend. Since early 2024, more businesses have been exiting the Canadian market than entering it, which the organization describes as an “entrepreneurial drought.”
CFIB’s Atlantic director Frederic Gionet says a combination of trade tensions, volatile energy prices and mounting expenses is making people think twice about starting a new venture.
“The cost of doing business is very high,” he said.
‘Cost of business has gone up’
Gionet adds that for brick-and-mortar retailers, the expenses do not stop at stocking the shelves. Commercial property taxes can be two to three times higher than residential rates for properties of comparable value in parts of the region, he said. For some of the smallest businesses, that bill can account for more than 10 per cent of operating expenses.
Meanwhile, costs associated with permits, licences and labour continue to put pressure on owners.
“So they have to pass these costs down to consumers, who in turn are tightening their belts themselves,” Gionet said.
And while there has been a strong push to shop local in recent years, he says finding the best deal can ultimately dictate where people spend their money.
The financial fallout of the pandemic is lingering as well. Gionet says many owners have not had time to fully recover.
“The cost of living has gone up substantially and the cost of business has gone up substantially,” he said, noting the compounding effect of the last few years.
Some are deciding they have had enough.
A CFIB report released Oct. 22 found that 63 per cent of Canadian small business owners plan to end their business within the next decade. Retirement is the leading reason, cited by 78 per cent, while 21 per cent identified burnout or stress and 20 per cent pointed to high operating costs.
But for Enman, who is also an architectural technologist, the shop is his retirement plan. He is spending his days surrounded by craftsmanship and artwork he admires, and sales have been steady.
“I’m very happy,” he said.
