How BC’s 2025 Budget Impacts Small Businesses (And How to Make It Work for You)

Overview:

BC just dropped its 2025 budget, and if you’re a small business owner, you might wonder: What’s in it for me? From workforce funding to tax incentives and infrastructure spending, there are plenty of opportunities but also some challenges. 

This is big news if you’re in retail, construction, tech, or hospitality. The province is rolling out $700M+ for workforce training, $45.9B for infrastructure projects, and $30M for the Integrated Marketplace Initiative, a program designed to connect emerging B.C. tech companies with commercial partners for product testing, with a key focus on low-carbon technology and boosting productivity.

However, rising debt, potential tax hikes, and trade risks mean businesses must be strategic. This blog includes key takeaways, real-life business impacts, and how Granted Consulting can help you navigate these changes. Spoiler alert: There’s money on the table, and innovative businesses will grab it.

Hiring Is Hard: But There’s Money to Help

If you’ve been struggling to find skilled workers, BC’s Future Ready Action Plan is throwing down over $700 million to help businesses upskill and recruit employees.

How You Can Benefit: Check out grants that cover training costs, whether it’s for tech skills, customer service, or specialized trades. The government wants to invest in a skilled workforce, so let them pay for it! Granted Consulting can help you identify and apply for the right grants.

Threats to Consider

• Higher wage expectations could increase operating costs for SMEs.
• Labour shortages are expected to worsen, especially in retail, hospitality, and construction.

Taxes: No Relief, But Strategic Savings Exist

There are no broad-based tax cuts this year (womp womp), but specific industries, tech, film, mining, and clean energy, get expanded tax credits. If you’re in one of these sectors, it’s time to call your accountant and figure out what you qualify for.

How You Can Benefit: If your business is in tech, sustainability, or creative industries, dig into these credits. They could mean thousands in savings. Granted, Consulting can help you maximize these incentives.

Threats to Consider

• Potential future tax increases due to rising provincial debt.
• No broad-based tax relief for SMEs means most businesses won’t see direct savings.

Infrastructure Boom = More Contracts for SMEs

The province is dropping $45.9 billion on infrastructure over the next three years. That means construction projects, transit expansions, and logistics upgrades, aka new contracts, are up for grabs. Moreover, a projected allocation of $95M for highway & bridge maintenance and $47M for BC Transit could boost businesses reliant on transportation.

How You Can Benefit: If you’re in construction, logistics, or manufacturing, now’s the time to get in on government-funded projects. Even if you’re a small player, subcontracting opportunities exist. 

Threats to Consider

• Competition for government contracts will be fierce.
• Not all industries benefit from infrastructure projects.

Trade Uncertainty: Time to Diversify

With U.S. tariffs looming (again), businesses that rely on exports should start thinking beyond just one market. The BC government is pushing local supplier initiatives to help businesses source materials domestically and reduce reliance on global trade.

How You Can Benefit: Explore alternative suppliers and markets if your business relies on imports or exports. Government funding is available to support market expansion. 

Threats to Consider

• Expanding beyond the U.S. market (think Europe and Asia) could reduce dependency on one region.
• The government supports local supply chains, meaning businesses can source more materials domestically.

The Housing Crisis Is Your Problem Too

Finding employees is hard, but keeping them is even more challenging when rent is sky-high. The province is expanding affordable rental programs, which could make it easier for your team to live near where they work.

How You Can Benefit: The $318M expansion of the BC Builds program will create more affordable rental options, making it easier for SMEs to retain employees. Supporting policies that enhance housing affordability can be a smart move for employee retention.

Crime Prevention = Less Theft & Loss

Retail theft is rising, and the BC budget includes $67 million to combat business-related crime. Expect more enforcement programs and community safety initiatives.

How You Can Benefit: Look into security funding, partner with local business associations, and consider upgrading your security systems.

Debt & Fiscal Challenges: Preparing for Uncertainty

Opportunities in sectors like tech, green energy, and film still offer access to tax incentives, so the next steps include preparing for potential tax increases by strengthening financial planning and considering diversification of revenue streams to build resilience.

Threats to Consider:

• The $10.9B deficit means fewer government relief programs.
• Provincial debt will hit $208B by 2027/28, which could limit future business funding.

Final Thoughts: What’s Your Next Move?

BC’s 2025 budget brings opportunities and challenges, but knowing where to look is key. Whether it’s workforce grants, tax credits, infrastructure projects, or trade strategies, savvy business owners will adapt and take advantage. 

At Granted Consulting, we’re committed to helping you navigate the complexities of workforce grants, infrastructure funding, and tax incentives to secure the support your business needs for growth and sustainability.

Take the next step by staying informed by signing up for our newsletter to receive ongoing updates on the latest funding opportunities. Let us guide you in maximizing government support to future-proof your business and stay ahead of the competition.