economic resilience

In the shadow of Canada’s corporate giants — think Shopify, RBC, or Enbridge — lies a largely overlooked powerhouse: the mid-market business sector. Comprising companies with revenues between $10 million and $500 million, these firms employ over 2 million Canadians and contribute nearly 12% of GDP. Yet they remain underrepresented in policy debates, investment narratives, and even the media spotlight.

Prime Minister Mark Carney’s new administration is now signaling a shift in focus. As Canada navigates economic headwinds from global volatility, domestic inflation pressures, and slowing foreign investment, mid-sized companies are increasingly viewed as the backbone of a more resilient economy — agile enough to pivot during crises, large enough to scale rapidly, and local enough to anchor rural and regional job markets.

The Quiet Growth Story

Unlike startups, which often chase rapid scale, or large corporations entrenched in legacy systems, mid-sized firms — often family-owned or regionally rooted — tend to take a long-term view. They are more likely to reinvest profits locally, maintain stable employment, and build relationships with domestic suppliers.

During the pandemic, many of these firms demonstrated remarkable adaptability. A Montreal-based chemical manufacturer retooled its operations to produce medical-grade sanitizer; a Vancouver logistics provider shifted to intermodal delivery when port congestion struck. These stories didn’t make headlines — but they kept the economy moving.

“Mid-sized companies are Canada’s quiet champions,” says Dr. Karina Hall, senior economist at the Fraser Institute. “They’re not flashy, but they’re durable. And in a volatile world, that’s what matters.”

Policy Gaps and Financial Barriers

Despite their importance, Canada’s mid-market firms face systemic disadvantages. Access to capital is a recurring issue. While major corporations have no shortage of suitors, and startups often benefit from government grants and VC funding, mid-tier businesses are stuck in a financing gap — too big for seed funds, too small for public markets.

Regulatory red tape is another burden. Many firms struggle with compliance costs that are scaled for multinational giants. “We spend more time filling out government paperwork than innovating,” says Julie Bernard, CEO of a Saskatoon-based agri-tech firm. “We’re not asking for handouts — just for policy that fits our size.”

To address this, the federal government is considering a Mid-Market Investment Catalyst Fund — a hybrid public-private vehicle designed to provide growth capital, succession financing, and R&D incentives tailored to firms in the $20–250 million range.

Regional Revitalization and National Strategy

Mid-market firms are also key to revitalizing Canada’s struggling regional economies. In Nova Scotia, a Halifax-based seafood exporter has expanded to Europe using sustainable cold-chain shipping. In Alberta, a family-owned software firm has quietly become a global leader in oilfield automation — exporting its product to 42 countries.

Yet these companies rarely get the same trade mission invitations, branding support, or media exposure as their corporate counterparts.

“We talk a lot about ‘Made in Canada,’” says David Liu, a policy strategist with the Economic Council of Canada. “But the government’s export strategy is still designed for giants. We need a ‘Middleweight Trade Strategy’ — one that focuses on firms with fewer than 500 employees but global ambition.”

The federal Innovation Ministry is expected to release a white paper this summer on “Next-Gen Economic Engines,” which sources say will focus heavily on mid-sized firms in cleantech, digital manufacturing, and bio-agriculture.

Conclusion: An Economy Built from the Middle Out

In a world where economic strength is often measured by unicorn valuations and Bay Street profits, Canada may be rediscovering an older truth: real resilience comes from the middle. By empowering its mid-sized firms — with smarter policy, better access to capital, and tailored support — Canada could unlock a wave of innovation and employment growth that is less vulnerable to global shocks.

As Carney’s government reorients its economic lens, the message is clear: it’s time to stop ignoring the middle and start building the future from it.