Advice and Predictions for Canadian Entrepreneurs in 2025
Canadian entrepreneurs are facing what can only be described as an unpredictable economic outlook in the coming year, with inflation, interest rates, and political turbulence combining to create a stew of spicy flavors that may be welcomed by those with a sense of adventure but dreaded by those who crave stability and security.
The Bank of Canada is expected to continue cutting its policy rate, with some predicting it will reach as low as 2.5% by the end of next year, down from its peak of 5.0% in 2023. These cuts are intended to stimulate growth, with GDP forecasted to rise by 1.5%—still modest, but higher than 2024 levels.
Lower borrowing costs will boost consumer spending and drive investments in real estate and businesses. As wages outpace inflation, households should feel more financially stable, leading to increased consumption.
Among the top challenges for entrepreneurs in 2025 is high household debt, which remains a drag on economic growth as interest payments consume a significant share of family budgets. While inflation is expected to stay within the Bank of Canada’s target range of about 2%, the possibility of it creeping back due to overreactive real estate markets or global pressures cannot be ignored.
The potential for U.S. tariffs and an unpredictable global trade environment will also weigh on business decisions. Entrepreneurs must contend with fluctuating demand and cautious investment climates.
Reza Satchu, the founder of Alignvest Management Corporation and Chairman of NEXT Canada, advises entrepreneurs to build strong partnerships to face uncertain conditions together. In an interview with Business Focus Magazine, Satchu outlines the principles of the “Founder Mindset”, an approach that he deems invaluable for creating entrepreneurial success:
“The “Founder Mindset” is centered around developing sound judgment and the ability to make consequential decisions. Founders need to hone their judgment through continuous practice and accountability. This mindset involves committing to a vision even with imperfect information and navigating uncertainty with conviction. The essence of being a founder is the relentless pursuit of your goals, displaying ambition and tenacity even in the face of adversity. It’s about demonstrating unwavering commitment, which in turn attracts belief and support from others.”
Satchu believes that entrepreneurs will need to be proactive about identifying opportunities during periods of economic transition. They will need to lean on the family of entrepreneurs and service providers to find the strength to commit to a vision even when the path ahead isn’t entirely clear.
“Accept that you will never have perfect information,” Satchu advises. “The key to entrepreneurship is making decisions despite uncertainty and being willing to take calculated risks. Many people get stuck waiting for the perfect moment or the perfect amount of information, which never comes. The real tragedy is not failing but never trying at all.”
In a year of gradual recovery and ongoing uncertainty, the qualities of a successful entrepreneur will be more critical than ever. Sound judgment and the ability to make consequential decisions are at the heart of entrepreneurial success.
Despite the many challenges, 2025 holds a lot of promise for entrepreneurs who are willing to adapt and innovate. Lower interest rates and easing inflation provide fertile ground for growth, while strategic investments in productivity and technology can help businesses thrive. The path to success lies in the relentless pursuit of goals—an approach that has proven its value time and time again.