Ontario survey data shows lower optimism and higher interest-rate sensitivity than U.S. counterparts, while operating conditions stay steady for most businesses
TORONTO, Jan. 28, 2026 (GLOBE NEWSWIRE) — Ontario small business owners are entering 2026 with a more reserved outlook than their U.S. counterparts, reflected in lower economic optimism, softer financial sentiment, and greater sensitivity to interest rates, according to a new Ontario snapshot from FreshBooks’ 2025 State of Small Business Survey.
Based on responses from small business owners and solo operators in Ontario, the data shows lower confidence relative to the U.S., alongside steady day-to-day operations for most businesses as owners navigate ongoing economic pressure.
Overall sentiment in Ontario is restrained. Just 23% of Ontario respondents said they feel optimistic about the economy, compared to 38% of U.S. small business owners. At the same time, 69% of Ontario respondents said they are doing just fine, indicating stability despite a more reserved outlook.
This cautious outlook extends to financial sentiment as well. 41% of Ontario respondents rated their financial health as positive, compared to 56% of U.S. respondents. Ontario business owners were also more likely to say their financial situation is worse than a year ago, at 31% versus 23% in the U.S.
Key Ontario findings include:
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Lower economic optimism, with 23% of Ontario respondents reporting optimism compared to 38% of U.S. small business owners.
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More reserved financial sentiment, with 41% of Ontario respondents rating their financial health as positive compared to 56% in the U.S., despite 69% of respondents saying they are “doing just fine.”
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Greater sensitivity to interest rates, with a lower percentage of Ontario owners reporting no major impact from rate increases (25% vs. 32% in the U.S.).
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Inflation pressures are broadly in line with the U.S., with roughly 26% of Ontario respondents reporting higher input costs
“Ontario small business owners are taking a measured approach as they navigate ongoing economic pressure,” said Faye Pang, Chief Growth Officer at FreshBooks. “What we see in the data is lower optimism paired with steady decision making. Many owners are focused on managing costs, protecting their time, and being thoughtful about when and how they invest in growth.”
Interest rates appear to weigh more heavily on Ontario businesses. Compared to U.S. respondents, fewer Ontario owners said rate increases had no major impact on their business. More reported increased stress tied to their work and greater difficulty staying financially stable, pointing to greater sensitivity to borrowing costs.
