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• Canada’s Startup Ecosystem Is Growing But Its Foundation Isn’t

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Canada’s Startup Ecosystem Is Growing But Its Foundation Isn’t

Canada’s startup support ecosystem is facing a critical challenge. Many entrepreneur support organizations (ESOs) are heavily reliant on government funding, creating a fragile system that is vulnerable to sudden policy shifts and budget cuts. Recent cancellations of support programs, especially in Québec, have led to abrupt service disruptions, leaving entrepreneurs hanging at key stages of growth.

Louis-Félix Binette, executive director of MAIN, points out the irony. Entrepreneurs are constantly told to diversify and innovate, but the ESOs supporting them often depend on a single funding source. This dynamic can lead to misaligned priorities, where the services being offered do not actually reflect what founders need. They reflect what the funder wants to see.

Key Takeaways

Single Source Dependency
Relying primarily on government funding leaves support organizations exposed to sudden cuts and policy changes, putting entrepreneurs at risk of losing crucial resources.

Misaligned Priorities
When funding dictates the agenda, ESOs may end up offering programs that do not fully match what founders on the ground actually need.

Time to Diversify
To build resilience and remain relevant, ESOs need to explore private sector partnerships, community led funding models, and new revenue streams.

Why It Matters

For Canadian entrepreneurs, especially early-stage founders, consistency and relevance in support services can be the difference between scaling and stalling. A support ecosystem that depends too heavily on government priorities is inherently unstable.

If we want a truly founder first ecosystem in Canada, we need to rethink how ESOs are funded and push for a model that values long term sustainability over short term grant cycles. This is not just a funding issue. It is about future proofing how we support the people building what is next.

Read the full article.

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🔌  NOTABLE PLUG

🎙️ Get Into It: The Mel Robbins Podcast. Mel Robbins provides practical advice and strategies to improve your life, covering topics like productivity, mindset, and personal growth. Listen on Apple Podcasts or Spotify.

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