Canada is at a pivotal moment. Our economic growth is stalling, and without significant changes to how we approach business investment, we risk falling further behind on the global stage. This was the central message at our Reigniting Investment event, where leaders from across key sectors — finance, energy, technology, and manufacturing — came together to share their perspectives.
The event opened with our President and CEO, Giles Gherson laying out the current reality: “Canada’s productivity has fallen precipitously, and capital flight has reached record levels. Without swift action, we risk further economic decline.” The urgency of this message was echoed throughout the day, as panelists and speakers issued passionate pleas for policy changes to unlock capital, support entrepreneurs, and restore Canada’s competitiveness.
The issue of Canada’s productivity struggles was a major focus at the event, with Dan Daviau, President & CEO of Canaccord Genuity Group Inc., offering a clear assessment: “We’ve been terrible at scaling companies in this country. Small businesses are nurtured, but mid-sized firms struggle to grow due to a lack of risk capital.” He emphasized these mid-sized companies are the backbone of the economy, yet they face significant challenges in accessing the investment needed to scale. “If we don’t address this gap, many promising firms will stagnate, or be bought out by foreign competitors,” Daviau warned.
In a conversation with Doug Turnbull, Vice Chairman of Morningstar DBRS, Daviau also pointed to the role banks could play in supporting this growth, stating, “Banks in Canada control most of the country’s wealth, but they tend to be risk-averse when it comes to mid-sized companies.”
"Canada’s productivity has fallen precipitously, and capital flight has reached record levels. Without swift action, we risk further economic decline."
- Giles Gherson, President & CEO, Toronto Region Board of Trade
Another recurring theme of the event was the need for government to foster a supportive environment where businesses can succeed. Sachin Aggarwal, CEO of Think Research, spoke powerfully about the importance of government collaboration: “Governments must understand that competition is global. The most successful innovation hubs have one thing in common: a strong, collaborative relationship between government and domestic technology firms.” He criticized the current approach, arguing current policies often hamper productivity and growth.
Aggarwal compared Canada’s situation to countries like Israel and India, where governments actively champion domestic firms, using public policy, procurement, and funding to propel their success. “In those economies, the government works hand-in-glove with the private sector. They understand that firms are the vehicle for innovation—and that when those firms succeed, the entire economy benefits.”
Lisa Melchior, Founder and Managing Partner at VERTU Capital, called for stronger support for Canadian entrepreneurs. “We need to celebrate and champion entrepreneurs—those who take on immense personal sacrifice and risk. These are the people who will drive our productivity and growth.” She stressed that Canada must prioritize home-grown businesses over foreign tech giants, ensuring that domestic companies have the resources they need to scale globally.
This sentiment was echoed by John Ruffolo, Founder and Managing Partner at Maverix Private Equity, as part of a conversation moderated by Julie Di Lorenzo, President, Mirabella Development Corporation, who underscored the importance of nurturing Canadian talent and innovation. The consensus from the panelists was clear: if Canada wants to build a strong, sustainable economy, it must invest in its entrepreneurs and support them in their efforts to innovate and expand.
Former Finance Minister Hon. Bill Morneau offered a practical roadmap for reversing Canada’s economic decline. “We need to review the tax code, but we also need to focus on unlocking business potential through strategic investments,” Morneau said. He emphasized the importance of creating incentives for businesses to reinvest in themselves, noting that taxes alone won’t solve the problem. “We need a comprehensive approach that includes tax reform, regulatory adjustments, and a focus on the sectors that will drive future growth—technology, energy, healthcare. Only then will we reignite investment and boost productivity.”
Morneau’s remarks were complemented by Ontario’s Parliamentary Assistant to the Minister of Finance, Dave Smith, who reinforced the importance of government support for businesses. “Government has a role to play in ensuring that businesses can thrive, but we also need to get our own house in order by reviewing spending and ensuring efficiency,” said Smith.
There’s a clear takeaway from our conversation, reversing our current trajectory needs to be a top priority for government and business leaders. All our panelists and speakers agree, Canada’s current tax regime is outdated, and without decisive action, we risk further stagnation. Smart, tailored tax reform is essential to help businesses scale, and without it, red tape and bureaucracy will continue to stifle innovation and growth.
This conversation is only the beginning. The Board remains committed to driving bold, ‘Big Bang’ solutions and advocating for real change. Learn more about how our Business Council of Toronto is actively working to help Canada remain competitive and reclaim its edge.
Thank you to our partners who made this event possible.
