Canadian SMBs Decry 'Faketriotism' Amid Economic Crisis

TORONTO, ON – March 30, 2026 – For years, "Buy Canadian" has been more than a slogan; it has been a rallying cry and a perceived lifeline for the nation's small businesses. However, a stark new survey suggests that for many entrepreneurs, this patriotic promise is ringing hollow, costing them dearly in a market already fraught with economic peril.

A survey of 600 Canadian small business owners, conducted by digital marketing firm Ignite Digital, reveals a deep-seated belief that consumer loyalty is a facade. An overwhelming 79.4% of respondents believe Canadians are engaging in "Faketriotism"—publicly supporting the Buy Canadian movement while privately turning to American companies to save money. This sentiment, a blend of frustration and resignation, points to a critical disconnect between national pride and consumer habits, adding a crisis of morale to the already long list of challenges facing the sector.

The 'Faketriotism' Fallout

The survey data paints a damning picture of perceived hypocrisy. Among the business owners who see 'Faketriotism' in their customers, 30.3% are certain it's happening, while another 34.3% believe it "kinda" is. The financial consequences are tangible, with nearly three-quarters of owners admitting this trend costs them money. While 57.3% say it's costing them "a little," a significant 21.8% report the impact is "a lot" or "too much."

This sentiment is not evenly distributed across the country. Provincially, the sense of betrayal is felt most acutely in Newfoundland and Labrador, where half of the business owners flagged 'Faketriotism' as a problem and 25% said it was costing them "too much." In contrast, business owners in Ontario, while also feeling the pinch, were identified by their peers as living in the most 'Faketriotic' province in Canada. A staggering 60.8% of SMB owners nationwide pointed to Ontario as the primary offender, distantly followed by British Columbia (15.3%) and Quebec (11.3%).

"We need to be brutally honest about the extreme and unforeseen challenges that Canadian SMBs are struggling through in 2026 and find real ways to support them before it's too late," said Matthew Goulart, founder of Ignite Digital, in the press release accompanying the survey. "We designed this survey to get real about how much Canadians may (or may not be) supporting SMBs."

Interestingly, the survey also reveals that small businesses are grappling with their own complicity. When asked if Canadian SMBs themselves are 'Faketriotic' by privately working with American suppliers to save money, owners were deeply divided. Nearly 30% said 'yes,' while 26.3% said 'kinda,' and 25.5% said 'no,' suggesting that the same economic pressures pushing consumers south of the border are also influencing business-to-business decisions.

A Perfect Storm of Economic Pressures

This perceived lack of local support is compounding a host of severe economic headwinds that are battering small businesses from all sides. The Ignite Digital survey highlights that 'Faketriotism' is just one element in a perfect storm of operational challenges.

When asked to identify their biggest business burdens, owners provided a laundry list of economic anxieties. Topping the list are relentlessly rising costs for rent, inputs, and shipping, cited by 63.67% of respondents. This is closely followed by the struggle to manage week-to-week cash flow (38.33%) and the impact of US tariffs (37.67%), which disrupt supply chains and inflate expenses.

The difficulty of adhering to the "Buy Canadian" ethos is further underscored by the costs associated with avoiding American suppliers. A combined 60.17% of business owners reported that finding non-USA suppliers has cost them significant money, illustrating a systemic challenge that makes competing with larger, cross-border retailers incredibly difficult. This reality forces a difficult choice on businesses and consumers alike: support local at a higher cost or seek savings elsewhere.

Beyond macroeconomic pressures, daily operational friction is also taking a toll. Business owners identified damaging client behaviors that cripple their stability, with late payments being the most significant issue (43.17%). This is followed by clients demanding unrealistic timelines (36.83%) and, alarmingly, the abuse or harassment of staff (32.00%), painting a picture of a business environment that is not just financially but also emotionally draining.

A Crisis of Confidence and Survival

The cumulative weight of these challenges has pushed many Canadian entrepreneurs to a breaking point, fostering a profound crisis of confidence that threatens the future of the small business sector. The survey reveals a grim outlook on survival, with nearly a third (30.17%) of owners admitting their business could only survive for three to five months if their revenue dropped by 25%. More precariously, 6.5% said they would last less than one month under such conditions.

This constant state of precarity has led to widespread regret. When bluntly asked if they regretted starting or buying their business, a combined 45.84% of owners said yes. While most of these (38.17%) feel regret only "sometimes," a notable portion feels it "often" (5.17%) or "constantly" (2.5%). This data point transforms abstract economic pressures into a deeply personal story of disillusionment and exhaustion for nearly half of the country's entrepreneurs.

Perhaps most telling is the erosion of the long-term dream that fuels entrepreneurship. The survey found that a staggering 73.17% of owners lack confidence that their business will survive long enough for them to sell it and retire. This figure, a combination of those who said 'no,' 'kinda,' 'I have no idea,' or 'I really hope so,' reveals that the foundational promise of building equity and a legacy is now in question.

While the survey provides a snapshot of business owner sentiment rather than a definitive measure of consumer behavior, the feelings of frustration and despair it captures are palpable. The data suggests that for a significant portion of the Canadian economy, the social contract between local businesses and their communities feels broken. For thousands of entrepreneurs across the country, the dream of building a successful Canadian business is now overshadowed by the daily battle for survival.