Questions surround the sudden bankruptcy of Small Business BC, a non-profit organization that helps British Columbians start their own small businesses. 

A statement on the organization's website says that the Canada British Columbia Business Services Society, also known as Small Business BC, "was placed under bankruptcy" as of Dec. 5. 

The organization receives funding from the provincial government as well as the federal government to supply small businesses with grants, advisory services, programming and education. 

"Seeing Small Business BC have this nail in the coffin is certainly very ironic and very troubling for small businesses owners across the province," said Emily Boston, senior policy analyst with Canadian Federation of Independent Business. "When we look to the institutions that are supposed to support small businesses, seeing that some of them are struggling themselves, is definitely something that undermines confidence and makes a lot of unease about the business environment moving forward for sure." 

British Columbia is home to more than 513,000 small businesses, accounting for about a third of the provincial gross domestic product and employ about 1.13 million people, according to the latest available provincial figures from 2022. About 98 per cent of all B.C.-based businesses are small businesses and the demise of an organization that has been supporting that part of the economy coincides with a period of weakness in the sector in the face of rising costs and interest rates. Small businesses have also expressed concerns about the effects of past and present labour disputes, first at B.C. ports, now at Canada Post. 

A CFIB survey released last month shows long-term confidence in the provincial economy among small business owners at 55 per cent, about 12 per cent below the historic norms. 

Boston said the demise of the society comes at a very "challenging time" for entrepreneurs in B.C. with 32 per cent of businesses reporting that they either find themselves in "weak" or "critical" financial health. 

Political reactions to the development have been immediate. 

Conservative Kelowna-Mission MLA Gavin Dew, who is his party's critic for Jobs, Economic Development, and Innovation, called the "sudden and unexpected demise of a well-known organisation supporting thousands of entrepreneurs over the decades" another blow to the "small business community and economic confidence" in a statement issued Sunday evening (Dec. 8). 

Dew blamed the government of Premier David Eby.

"The provincial government was a major longtime funder of SBBC, had direct line of sight with a seat at the board table, and would have known it was facing bankruptcy,"  Dew said. 

He added that the closure of Small Business BC, a legacy non-profit dating back to Expo 1986, coupled with the loss of 36 jobs "exemplify the Eby government's lack of serious commitment to fostering economic growth and protecting the livelihoods of B.C. families."

Speaking Monday at an unrelated event in Vancouver, Eby said staff are working to protect the taxpayers, while ensuring that services delivered by subcontractors continue in noting that Small Business BC was a third party, non-profit service provider.

"For our businesses, that were dependent on Small Business BC, this is significant," Eby said. "So our team is working hard to make sure that those subcontractors for Small Business BC that ... they are able to continue delivering (programming), so that businesses are not interrupted by the decision of Small Business BC to enter creditor protection," he said. 

Staff are also working to recover any public monies while ensuring Small Business BC lives up to its obligations to employees, Eby added, when asked about reports that laid-off employees neither received their final pay-cheques nor severance. 

Another line of questioning concerns government's knowledge of the issues facing the society. 

"We were aware that Small Business BC was in financial difficulty and staff were actually working with Small Business BC to try to address the issue," Eby said. "They decided to enter into creditor protection." 

B.C.'s Jobs Minister Diane Gibson Monday afternoon told Rob Shaw of CHEK B´ÎÔª¹ÙÍøÍøÖ· that government had become "aware in October of an irregularity" within the organization "and in November, that of the magnitude" and then finally of the bankruptcy last week. "This is a situation around management," she said. "It's an independent agency that we don't have direct oversight on."

She added that the province would continue to provide all small businesses services. 

Looking at specific amounts, B.C.'s Jobs Ministry provides Small Business BC $1.86 million in annual funding for core services and Export Navigator Program providing support for B.C. exporters. In fiscal year 2024, the ministry also provided one-time funding of $393,000 for the Export Navigator Technical Specialist Pilot program and $300,000 to rebuild and modernize core IT infrastructure.

Small Business BC has also received funding of $4.8M annually (2021-2026) for employer supports for persons with disabilities and an additional $3 million annually since 2023 for accessibility awareness, education and support through B.C.'s Ministry of Social Development and Poverty Reduction.