May 15, 2025
When Prime Minister Mark Carney appointed Rechie Valdez as Chief Government Whip in March, her former role as minister of small business was quietly dissolved. No replacement was named. No mandate was reassigned.
On Tuesday, Ms. Valdez was again given the small business portfolio, though that is no longer her main job. Ms. Valdez was sworn in as the Minister of Women and Gender Equality. She was given the small business portfolio only in the capacity of secretary of state, a sort of junior minister.
And Ms. Valdez’s full title in the junior position is Secretary of State (Small Business and Tourism). So, from a cabinet-level portfolio, small business is now not only downgraded but also comprises just half of that downgraded portfolio.
With that, Canada’s small business owners – who’ve been reeling from years of economic whiplash – more or less lost their seat at the cabinet table. In her capacity as secretary of state, Ms. Valdez does not manage her own federal department or attend all cabinet meetings. It’s difficult to overstate how mistimed this decision is.
The past five years have been especially tough for small businesses. They bore the brunt of pandemic lockdowns. Many took on government-backed loans to survive, which, if not paid off already, are accumulating interest.
Now, tariffs and trade challenges have forced small businesses to make tough calls yet again, just as they were finding their footing. According to our research, at least one in four (29 per cent) have already laid off staff and paused hiring plans, and two in five (39 per cent) have passed cost increases on to their customers. These are the kind of choices no business owner wants to make.
Representation at the federal level made a real difference during the pandemic. Former small business minister Mary Ng worked closely with business groups to introduce wage and rent subsidies and emergency grant programs. Her office became a critical liaison between entrepreneurs and Ottawa during a national emergency. That direct line to the government was vital then, and it’s even more necessary now.
Ms. Valdez also helped while in the role, increasing access to financing and mentorship for young entrepreneurs, offering more flexible capital options and championing initiatives such as the Canada Carbon Rebate for Small Businesses.
That progress is at risk of stalling.
Without a dedicated minister, the concerns of small businesses risk being scattered across multiple departments, none of which are solely focused on their needs. The industry minister prioritizes large-scale investment and national issues, while the finance minister oversees the broader economy. As a result, crucial signals, such as the sharp rise in insolvencies driven largely by small businesses, risk being overlooked.
This role isn’t symbolic. It’s essential. A minister of small business advocates for policy changes, connects entrepreneurs to government and decision-makers, and makes sure the challenges that owners face aren’t overshadowed by those of larger players with much more resources and runway to weather storms.
Thousands of small business owners across Canada are trying to grow amid rising costs, shrinking credit options and mounting uncertainty, with no real clarity on how they can count on the government to be heard and supported. They need a champion in the cabinet now.
I urge the Prime Minister to immediately reinstate a dedicated minister of small business who has a clear mandate, genuine influence through budget authority and policy oversight, and direct accountability to entrepreneurs, such as regular public reporting and measurable targets for supporting small business growth.
Small businesses are the backbone of the economy, employing about half (46.8 per cent) the workers in the Canadian private sector and generating more than half (55 per cent) of the country’s GDP. Yet, they’ve been left without a voice at the cabinet during one of the most challenging economic periods in recent memory. That’s not just short-sighted, it’s dangerous.
Without a seat at the table, the bakery owner in rural PEI or the family-run plumbing company in Calgary risk being forgotten, and our economic resilience will pay the price.
