The national capital fell to 73rd out of 103 cities. The ranking is based on factors such as levels of business ownership and local government policies.
Using a comparable criteria, Ottawa came 70th on the list last year.
(The CFIB recalibrated the 2011 rankings based on a “modified ranking method,” the organization stated, adding two more variables and changing the measurement weighting. Under the original methodology, Ottawa was 78th in 2011.)
“It may seem obvious, but one of the surest signs of an entrepreneurial hot spot is the presence of a high concentration of entrepreneurs and a high business start-up rate,” the CFIB stated.
“It is also important that business owners have high levels of optimism and success in their operations. Good public policy is also critical, so we look at the presence of supportive local government tax and regulatory policies.”
Western cities dominated the top 10 cities across the country in 2012. Grande Prairie, Alta. came first in the list, followed by Saskatoon and Regina. The cities of Montreal and Toronto came in at 71st and 82nd, respectively.
The CFIB is an advocacy organization representing more than 109,000 small- and medium-sized businesses across the country.