Co-author Jonathan Galgay says its study, released this week, is the first of two reports on the shrinking business landscape.
He says Canada is in an entrepreneurial drought, which is determined by a period of four or more consecutive quarters where entry rates are lower than business exits.
He says the situation is even more startling in this province.
“Newfoundland and Labrador recorded the most negative net change over the past decade with fewer than ten quarters showing positive growth. It’s a startling statistic.”
Galgay cites cost pressures, regulatory burden and the labour shortage as mitigating factors.
To make matters worse, a survey of small business owners shows that few are optimistic about the prospects of opening a new business at this time.
“Fifty-five per cent of small business owners would not recommend starting a business today. That is a very, very striking number. There’s a lot of risk.”
