Starting a business is never just about having a great idea. The environment in which you launch is critical in determining your startup’s success.
Certain provinces in Canada stand out as particularly favorable for entrepreneurs. These regions offer a unique mix of economic vibrancy, access to talent, and supportive policies that make them attractive for business ventures.
Here’s a breakdown of the top five business-friendly provinces in Canada for 2024.
Understanding the Ease of Doing Business Index
The concept of “Ease of Doing Business” is one of those things that seems simple until you start digging into it. At first glance, it’s just about how easy it is to start and run a business in a particular place. But when you break it down, you realize it’s actually a collection of dozens of small factors, each playing its part in the overall experience of being an entrepreneur.
One way to think about it is like setting up a complex machine. If all the parts are well-designed and fit together perfectly, the machine runs smoothly. But if even one part is out of alignment, everything else has to work harder, and the whole system becomes less efficient. In business, those parts include:
- How quickly you can register a new company
- How straightforward the tax system is
- How easy it is to hire talented people
When all these elements work well together, starting a business feels natural, almost like it was meant to happen.
But it’s not just about the nuts and bolts of bureaucracy. There’s also the question of how supportive the broader environment is.
- Are there investors who are willing to take a chance on your idea?
- Is there a culture of entrepreneurship that encourages risk-taking?
These are harder to measure, but they’re just as important. If you’re in a place where people are excited about new ideas and there’s a network of other entrepreneurs who can offer advice and support, that’s a huge advantage. It’s the difference between feeling like you’re pushing a boulder uphill and feeling like you’re riding a wave.
Another factor is stability. Entrepreneurs are naturally attracted to places where they can predict the future—at least to some extent. If you know that the local government is going to be stable, that taxes aren’t going to suddenly shoot up, and that the laws governing your business aren’t going to change overnight, you can plan more confidently. On the flip side, it’s hard to focus on growing your company if you’re constantly worried about the ground shifting beneath your feet.
Canada’s Most Business-Friendly Provinces
1. British Columbia
Renowned Companies in British Columbia:
- Hootsuite (Social Media Management)
- Lululemon (Athletic Apparel)
Why British Columbia Made the List
British Columbia has a unique energy, especially when it comes to startups. The province has quietly become a powerhouse, home to over 11,000 tech companies. BC has figured out the formula: a combination of natural beauty, a vibrant city like Vancouver, and a government that understands entrepreneurs’ needs.
What makes BC stand out isn’t just the sheer number of startups—it’s the ecosystem that supports them. The provincial government is serious about fostering innovation. They’ve set up initiatives like Innovate BC, which provides funding, mentorship, and resources tailored to help startups grow. It’s about bridging gaps between the skills companies need and what’s available in the workforce. Programs like the Venture Acceleration Program and the Innovator Skills Initiative are examples of this targeted support.
Then there’s the accessibility of resources. Organizations like Small Business BC offer entrepreneurs everything from step-by-step guides on starting a business to information on available loans and grants. In other words, if you’re trying to start something in BC, you’re not on your own.
But the numbers also tell a story. As of 2023, BC’s GDP per capita is around C$47,579, which is evidence of a strong economic foundation. A solid economy means more opportunities; for startups, that signals that they’re planting roots in fertile ground. Companies like Hootsuite and Lululemon have already proven that BC is a good place to stay and grow.
2. Ontario
Renowned Companies in Ontario:
- Shopify (E-commerce Platform)
- BlackBerry (Security Software and Services)
Why Ontario Made the List
Ontario isn’t just Canada’s most populous province—it’s also its most dynamic when it comes to startups. Toronto, Ottawa, and Waterloo are at the heart of this transformation, each playing a critical role in shaping the province’s tech ecosystem.
Toronto, in particular, has earned a reputation as a “startup hotspot.” Big players like Google and Microsoft have set up shop here, drawn by the city’s diverse talent pool and the vibrant entrepreneurial spirit. This influx of global tech giants has only fueled the momentum, creating a feedback loop where innovation breeds more innovation.
But Toronto isn’t the only star. Markham, once a quiet suburb, has emerged as a significant tech hub in its own right. Home to over 1,500 technology companies and over 35,000 skilled professionals, Markham is now a leader in the artificial intelligence and robotics sectors. It’s part of Canada’s innovation corridor, a stretch of cities pushing the boundaries of what’s possible in tech. Markham’s growth is a testament to how Ontario spreads its innovation footprint beyond just the major cities.
Ontario’s government has also played a strategic role in this rise. They’ve committed significant resources—up to $77 million—to help companies adopt cutting-edge technologies like AI, blockchain, and robotics. Programs like the Investment Accelerator Fund, which offers up to $500,000 seed funding, further demonstrate the province’s commitment to fostering early-stage startups. Administered by MaRS, these initiatives are critical in sectors like IT, health, and clean technology.
Access to capital is another area where Ontario shines. The province has seen a notable influx of venture capital, crucial for startups aiming to scale quickly. The proximity of Kitchener-Waterloo, another tech powerhouse, enhances these funding opportunities, creating a robust network of financial support across the province.
Then there’s the talent. Ontario’s workforce isn’t just large—it’s highly educated and diverse. The province attracts talent worldwide, contributing to an environment where different perspectives and ideas can flourish. With a strong pipeline of graduates from the province’s numerous universities and colleges, Ontario ensures its tech sector is always fueled by fresh, skilled talent.
3. Quebec
Renowned Companies in Quebec:
- Bombardier (Aerospace and Transportation)
- Cirque du Soleil (Entertainment)
Why Quebec Made the List
Quebec might not always be the first place that comes to mind when people think about tech hubs, but that’s changing fast. The province has quietly built up a tech ecosystem that’s now the second largest in Canada, home to over 10,000 tech companies. That’s not a minor achievement—Quebec accounts for 23% of the country’s tech jobs. This didn’t happen by accident; Quebec has positioned itself strategically in the tech world, particularly artificial intelligence.
Montreal, in particular, is leading the charge. The city has become a global center for AI, largely thanks to Mila, the world’s largest university-based AI research institute. With $895M in public investment in AI since 2016, such as the Canada First Research Excellence Fund, Québec AI cluster, Scale AI supercluster, etc., Quebec has become a magnet for AI talent and investment.
Quebec’s government plays a crucial role in the startup ecosystem. In 2022, they launched a CA$7.5 billion ($5.5 billion) Research and Innovation Investment Strategy, a massive commitment to fueling the province’s innovation ecosystem. This investment aims to drive research and development across various industries, ensuring that Quebec remains at the forefront of technological advancement.
Quebec has developed a supportive infrastructure that nurtures startups from the ground up. Over 100 incubators, accelerators, and co-working spaces like Centech and District 3 offer mentorship, networking opportunities, and access to funding. These organizations are the lifeblood of Quebec’s startup ecosystem, providing the support that early-stage companies need to survive and thrive.
Another critical advantage for Quebec is its talent pool. Over 79.5% of 25-34-year-olds hold a post-secondary degree, which means startups have access to a highly educated workforce. The province also attracts international talent, adding to its labor force’s diversity and skill set. With world-class universities like McGill, Université de Montréal, and École Polytechnique de Montréal, Quebec is not just keeping pace with innovation—it’s driving it. These institutions are at the forefront of cutting-edge research and collaborate closely with industry, ensuring that Quebec remains a leader in tech and innovation.
4. Alberta
Renowned Companies in Alberta:
- Suncor Energy (Energy Production)
- WestJet (Airline)
Why Alberta Made the List
Alberta might surprise some people as a tech hub, but that’s exactly what it’s becoming. Calgary and Edmonton, the province’s two biggest cities, are leading the charge, with Calgary recently earning a spot among the top 50 emerging startup ecosystems globally. That’s a big deal for a place more often associated with oil than software. But Alberta’s startup scene is diverse, and it’s growing fast.
Calgary’s rise is especially notable. From July 2021 to December 2023, the tech sector added $8.1 billion to the local economy. And it’s not just one industry driving this growth. Alberta’s startup ecosystem spans cleantech, fintech, agritech, and artificial intelligence. The province is leveraging its expertise in energy to lead in the cleantech sector, focusing on innovations like carbon capture and low-carbon technologies. At the same time, Calgary’s fintech sector is expanding rapidly, and a skilled workforce and a growing number of startups support it.
The Alberta government has also played a smart game. They’ve introduced funding programs like the Innovation Employment Grant, which provides up to 20% funding for qualifying research and development expenditures. This is a big incentive for businesses of all sizes to invest in innovation.
The ATB Entrepreneur Centre is one of many initiatives that help new businesses find the funding and resources they need to get off the ground. Then there’s Platform Calgary and Edmonton Unlimited, both of which provide mentorship, networking, and support for startups at various stages of development. These organizations are crucial—they’re where entrepreneurs connect, share ideas, and get the help they need to turn those ideas into reality.
One of Alberta’s key strengths is its talent pool. The province boasts a young, diverse, and educated workforce with a strong emphasis on technology and innovation. One indicator of this is the University of Alberta’s computer science program, which has experienced an 86% increase in enrolment since 2015. Alberta’s universities and colleges are churning out graduates who are ready to enter the tech industry, providing a steady stream of talent for startups.
Alberta’s GDP per capita is around C$70,705, one of the highest in the country. The economy is projected to grow at 2.5% in 2024 and 2.7% in 2025, outpacing national growth rates. For startups, this means a supportive economic environment where they can grow and thrive.
Conclusion
As we’ve explored in this blog, the top business-friendly provinces in Canada offer unique opportunities for entrepreneurs and companies looking to grow. From thriving tech ecosystems to supportive government initiatives, these regions pave the way for innovation and economic development. However, fostering a business-friendly environment is not just about having the right policies in place but also the tools to support and enhance those policies.
This is where Cocoflo comes in. Our cloud-based digital platform is designed to help local governments across the U.S. and Canada streamline their operations, improve citizen engagement, and create more efficient and transparent services. By integrating existing systems and data, Cocoflo enables governments to provide better service delivery, reduce administrative costs, and collect revenues faster, all while ensuring that even citizens in remote locations have access to essential services.
