Breaking Down Borders: What Canadian Entrepreneurs Told Us About Interprovincial Trade

By Britney Bresciani  |  
Breaking Down Borders: What Canadian Entrepreneurs Told Us About Interprovincial Trade Title Image

On June 10, Startup Canada’s Startup Gov program brought together a dynamic group of entrepreneurs from across British Columbia to talk about one of the most overlooked challenges facing small businesses in Canada: interprovincial trade barriers.

This timely conversation followed the tabling of Bill C-5 (the Free Trade and Labour Mobility in Canada Act) and revealed just how complicated and costly it can be to grow a business across provincial borders. While government programs often prioritize international expansion, many entrepreneurs shared that it’s actually easier to export to the U.S. or overseas than to ship products within Canada.

Key Challenges Raised

 Regulatory Inconsistencies

  • Entrepreneurs face a complex patchwork of provincial rules, ranging from French labelling requirements to varying tax systems and licensing approvals.

  • Finding reliable information is often a barrier in itself. Many participants called for a centralized platform mapping regulatory differences and requirements across provinces.

Shipping and Logistics

  • For businesses in remote or northern regions, affordable and reliable shipping is a major hurdle. One entrepreneur noted it’s cheaper to import goods from Asia than ship them across Canada.

  • Temperature-sensitive and perishable products are especially hard to move between provinces, with high costs often making domestic growth unsustainable.

  • The lack of infrastructure, especially cold-chain logistics and regional hubs, continues to isolate northern and Indigenous communities from broader markets.

 Sector-Specific Hurdles

  • Agri-food and bioresource companies shared unique roadblocks, such as expensive certifications and limited processing options within Canada.

  • Businesses that produce bulky or fragile goods also struggle with restrictive shipping options and a lack of scalable infrastructure.

What Entrepreneurs Are Asking For

 

  •  Better Navigation Support: A concierge-style government service to help entrepreneurs understand and meet regulatory requirements across provinces.

  •  Domestic Expansion Funding: While export grants are widely available, similar support for interprovincial growth is almost nonexistent and would be beneficial.

  • Standardization: Unified processes and clearer documentation would help reduce administrative overhead and open new markets within Canada.

  • Regional Fulfillment Hubs: Investments in shipping and logistics infrastructure, particularly in the North, could dramatically improve national connectivity.

  • Government as Connector: Founders emphasized the value of the government using its convening power to bring together ecosystem players, including large corporations, small startups, and regulators.

A Call for Ecosystem Leadership

Canada’s entrepreneurial ecosystem is rich with talent, but the roundtable highlighted a clear need for greater collaboration between government, established companies, and startups. 

At its core, Startup Gov is about creating space for these critical conversations. By elevating founder voices and identifying the pain points that hinder growth, we can help shape smarter policy, designed by and for the people who feel its impact every day. 

Thank you to our Startup Gov presenting partner, Amazon, for supporting this program and for engaging Amazon sellers.