Atlantic Canada Business Grants

Prince Edward Island

Employ PEI – For Employers

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Amount:

No Fixed Amount

Type of Program:

Subsidy

Description:

Employ PEI is an employment program to help job seekers develop new skills and gain work experience through on-the-job training. By providing a temporary wage subsidy to an employer, it helps create long term employment opportunities and assists the employer with the cost of hiring and training a new employee.

Benefits of Employ PEI:

How can Employ PEI help job seekers?

Employ PEI is an employment program designed to help job seekers find long-term employment opportunities. The program provides job seekers with the opportunity to gain valuable work experience and training while earning a wage. This can be particularly helpful for individuals who lack the work experience necessary to secure a job in their desired field.

Through Employ PEI, job seekers can gain access to a range of employment services, including job search assistance, resume and cover letter writing, and interview preparation. They can also receive financial support and advice through the Self Employ PEI program, which helps job seekers launch their own businesses.

How can Employ PEI help employers?

Employ PEI provides employers with a range of benefits, including financial assistance to help them create long-term employment opportunities for job seekers. Employers can receive a temporary wage subsidy to provide on-the-job training for a new full-time employee. This subsidy can cover up to 50% of the wages for a maximum of 20 weeks.

In addition to financial assistance, Employ PEI can help employers find qualified candidates for their job openings. The program works closely with job seekers to identify their skills and experience, and then matches them with suitable job openings. This can save employers time and money in the recruitment process.

Employ PEI can also help employers develop their workforce by providing training and skills development opportunities. This can help employers retain their employees and improve productivity over the long term.

Comments on Funding:

Funding is a subsidy of 50% of the wages, up to a maximum contribution of $12.50/hour to a maximum of 20 weeks. 

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The employer must be:

The employee must be: 

  • unemployed and looking for full-time work,
  • legally authorized to work in Canada (Canadian citizen or permanent resident),
  • out of high school for at least 2 years.

Application Steps:

1

The applicant/employer must submit their application package and receive confirmation from SkillsPEI that they have been approved for the program before they start their new job, 

Documentation Needed: 

The applicant must submit:

  • the completed application form,
  • a detailed job description,
  • the contact details for the new employee,
  • a sustainability plan to maintain the new employee following the subsidy period.

Program Contact:

Employ PEI - For Employers

EMPLOY PEI Application for Organizations

Starting a Business in PEI: Step-by-Step Guide for Prince Edward Island Entrepreneurs

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Although some people may think of Prince Edward Island as being primarily rural, it remains a great environment in which to start a business.

PEI’s economy traditionally relies on fishery, agriculture, and tourism. However, new entrepreneurs here don’t have to stick to those industries to have a chance at success.

Growing industries and segments of traditional industries that are going through modernization techniques work well for starting a business.

When you need some advice for taking your plan for a new business from the idea phase to the making money phase, our step-by-step guide on starting a business in PEI can help. (And if you don’t even have a business idea yet, our tips can help with that, too!)

Step #1: Come Up with Your PEI Business Idea

It’s important to note that not all business ideas are winners from the start. Some need a little tweaking and massaging to move toward the success stage.

Still, even a bad business idea is better than no idea at all. You can’t move forward with trying to start a new business in PEI until you have some sort of idea that you can begin researching and studying.

If you’re struggling with formulating a business idea, we have some tips you can use to spark things.

Know the Top Industries in Prince Edward Island

One of the most trusted ways to come up with a great business idea is to study the best industries in Prince Edward Island. These strong industries are already established, so you can piggyback on them when trying to find your footing.

Some established industries in PEI include fishing, agriculture, and tourism. PEI farmers have involvement in both plant- and animal-based agriculture. Those involved in fishing in PEI harvest fish, crab, lobster, oysters, and more.

Additionally, the Prince Edward Island provincial government has a list of nine emerging industries that are expanding and are ready to grow further. The industries are:

  • Agriculture
  • Seafood
  • Aerospace
  • Bioscience
  • Manufacturing
  • Ocean tech and marine
  • Renewable energy and clean tech
  • Information and communications technology
  • Tourism

Ideas for Prince Edward Island Small Businesses

If one of these industries appeals to you, the next step is to try to figure out which area of the industry is worth considering as a business venture.

Rarely will a small business want to tackle the industry in a general manner, because most competitors in this area will be large businesses. Instead, it may be better to focus on a niche area of the industry where competitors will be fewer and where you can focus your investment dollars.

For example, because tourism is such a big part of the economy in PEI, you may want to work in a niche area of tourism. Maybe you create tours on the island for visitors. Maybe you can set up tee times at various golf courses and lodging for visitors to the island, so they can try different courses during a week-long golf trip. Maybe you want to start a restaurant that caters to tourists.

Where Is the Best Place to Start a Business in Prince Edward Island?

Prince Edward Island consists of many rural areas. At a population of about 154,000 people, the island has only one city of more than 17,000 people, which is Charlottetown that has a population of more than 52,000.

If you need to have access to high-tech resources or to large numbers of employees and customers, you may want to stick close to Charlottetown.

Locating a business that focuses on tourism or agriculture may be more appropriate in a rural area of Prince Edward Island. However, because PEI is easily Canada’s smallest province, covering about 5,700 square kilometres, traveling across the island for business doesn’t take a long time, regardless of where you are located.

If you need easy vehicular access to the Canadian mainland for your business, Prince Edward Island and New Brunswick connect through the 12.9-kilometre Confederation Bridge. Charlottetown is 55 kilometres from the Confederation Bridge. If you want to locate your business near the bridge, you’ll be in a rural area.

Step #2: Select a Type of Business

Once you have a few potential business ideas in mind, you are ready to think about what kind of business you may want to run. Choosing to be part of the fishery industry or the ag industry in PEI is only part of the process.

Products, Services, or Both

As a general rule, businesses provide goods or services. Some even provide both. Deciding whether you want to offer goods or services is a key step in moving things forward with your business idea.

  • Products: With products, you are offering tangible goods to your customers. In the fishery industry, you might choose to sell watercraft, nets, fishing equipment, or parts for motors. You might create these products yourself, or you might source them from another provider and resell them.
  • Services: With services, you will offer to perform tasks for your customers. These tasks are in areas where you have expertise. Back to the example of the fishery industry, perhaps you offer service to repair boat motors, to install navigation equipment, or to paint boats. You might offer these services yourself, or you may hire a third party to perform them on your behalf.
  • Both: Offering both goods and services works nicely for some small businesses in PEI. Perhaps you sell fishing equipment, while also offering to install it or repair it. Maybe you can sell parts for small engine motors, while also installing those parts.

Running a Business Offline or Online

Another option is to determine whether you want your primary means of business to be online or offline.

  • Online: An online business is a digital business that you run through a website. You could have a digital store where you sell locally sourced products from Prince Edward Island. You also could have a digital storefront where you offer your services, such as running a consulting service. You then would perform services on the client’s property, rather than having your own business location.
  • Offline: An offline business is one that operates from a brick-and-mortar location. (An offline business almost certainly will have a digital presence, too, such as a website.) Primarily, customers will visit your business location to purchase products, like at a retail store, or may bring items to you for repair at your location. If you have multiple employees, you likely will need a physical location to serve as headquarters.

Some PEI businesses may sell products in a physical store and through a website. However, the majority of them will primarily work through either a digital location or a physical location.

If you are planning on running primarily an online business, you must have excellent internet reliability and speed. The provincial Prince Edward Island government has a plan in place to greatly expand high-speed internet availability on the island by 2025.

Considerations for Your PEI Physical Location Business

Some things to keep in mind for locating your business in Prince Edward Island include:

  • Location: Placing your physical business near your customers is a great way to keep your business’ name at the front of mind for them.
  • Convenience: You should make it as convenient as possible for your customers to visit your location. Try to remain near major roads, if possible.
  • Maintenance: A physical location business involves having a building. You will have maintenance costs associated with a building, such as repairs, snow removal, janitorial, and general upkeep.
  • Building standards: At a physical business location where members of the public will visit, you must follow the building safety standards that the PEI provincial government has in place.
  • Inventory tracking: When selling products at a PEI business, you may want to have inventory tracking software in place, as well as point-of-sale equipment and software.

Examples of Offline Businesses in Prince Edward Island

  • Boat sales
  • Farm with animals
  • Farm with planted land
  • Health care facility
  • Bed and breakfast
  • Restaurant
  • Golf course
  • Manufacturing facility
  • Car repair shop

Considerations for Your PEI Digital Business

Some items you should keep in mind when operating a digital business in Prince Edward Island include:

  • Working from home: When operating a digital-only business, you may be able to run it from your home, as long as you have a strong internet connection and the equipment required.
  • Communication: Excellent communications skills are vital for an online business. Because your customers may rarely see you face to face, you need to communicate well via phone, text, email, and social media.
  • Reliability: When customers don’t meet you face to face, they tend to be less forgiving of missed deadlines and errors. You need to be highly reliable when running an online business.
  • Online costs: Costs are lower when running an online business versus a physical location business. However, you still must purchase things like hardware, software, and a website, so you will have some costs.
  • Renting space: You don’t have to operate your online business from your home. You may want to rent office space for employees or a warehouse for storage of your products. Customers would still interact with you digitally and wouldn’t visit you at those locations. Innovation PEI offers the Startup Zone that provides these kinds of resources to startups.

Examples of Digital-Only Online Businesses in Prince Edward Island

  • Freelance writing
  • Freelance photography
  • Freelance website development
  • Manage social media for existing businesses
  • Digital store with local products
  • Remote customer service agent
  • Remote tech support agent

Seek Online Business Development Help in PEI

High quality websites are vital to any business in Prince Edward Island, but especially for online-only businesses. If your website doesn’t have a professional design, potential customers are likely to skip your site for another option.

Fortunately, you can find plenty of help with developing your website. Website hosting services give you help with purchasing a web address and with designing your website.

Should you want to develop an online store where you sell products sourced in Prince Edward Island, setting up an online storefront is also an easy process when you subscribe to a service.

Don’t Forget About Social Media and Digital Marketing

Modern businesses rely heavily on a strong social media presence and on digital marketing. Businesses in PEI are no different. Not only can digital marketing introduce you to local customers in PEI, but it may introduce your business to others across Canada.

Some of the items you should focus on when trying to build your social media presence include:

  • Professional: It’s okay to have fun with your business’ social media posts, but you should keep the humor on a professional level. You don’t want to turn off customers with poor behavior or offensive photos on social media.
  • Consistency: Try to keep your core message consistent from your website to all your social media platforms. Then twist that message to match the type of digital platform.
  • Updates: Keep your website and social media accounts up to date with frequent posts and updates. Highlight special deals in these digital areas, too.
  • Testimonials: One great way to highlight the quality of your business’ performance is through customer testimonials and reviews on your website and in social media. You probably will have to ask customers for testimonials after you serve them, as most people won’t leave reviews on their own.
  • Interact: Customers sometimes will complain about your business on social media, rather than in person. Try to engage these customers to figure out the problem and then offer to fix it. After you fix the issue, ask the customer to provide an updated review.

The Prince Edward Island provincial government offers assistance to new businesses and non-profits in developing a digital presence.

Step #3: Figure Out How You Want to Enter the PEI Market

The process of becoming an entrepreneur in Prince Edward Island opens up a few different avenues to you. Although most people focus on starting a business from nothing, there are other options that may fit your needs better.

New Business from Scratch

Starting a PEI business from scratch gives you the most control over the process from the idea phase to the day you have your first customer.

Advantages:

Disadvantages:

  • It requires a lot of hours
  • Funding concerns are common
  • Some tasks will be beyond your areas of skill

Buy a Business from Someone Else

People sell businesses regularly in Prince Edward Island. Buying an existing business has some advantages for those seeking to become an entrepreneur.

Advantages:

  • Less time required to begin operations
  • Built-in brand name
  • Built-in customer base
  • Easier to set financial expectations
  • Previous owner may stay on briefly to help you

Disadvantages:

  • Previous owner’s mistakes affect you
  • You get less credit versus starting from scratch
  • Some owners may lie about income history

If you are buying an existing business, taking the owner’s word for financial performance and what assets are part of the sale is a bad idea. Instead, seek out an attorney and an accountant to verify the agreement.

You may want to seek the help of a business broker to facilitate the process of finding and purchasing an existing business, too. Brokers in PEI have an intimate knowledge of the local business environment, meaning they can help you find great businesses for sale that fit your skills and desires. Some of the best business brokers in Prince Edward Island include:

If you prefer to do some legwork regarding existing businesses for sale in Prince Edward Island before reaching out to a broker, several websites exist that showcase businesses for sale, including:

Businesses for sale by owner

Online marketplaces with businesses for sale

Online real estate brokers

Buy a Franchise as Your Business

Purchasing a franchise means you are buying a brand name business with the right to start and run a new location for that business in Prince Edward Island. The franchiser gives you help along the way.

Advantages:

  • Receive a known brand name
  • Receive help with advertising
  • Receive instructions for startup
  • Tap into a network of fellow franchisees
  • Be operating faster versus starting from scratch

Disadvantages:

  • Less control over the operations
  • Costs are higher than starting from scratch
  • Scams occur among potential franchisers

To protect citizens of PEI from potential franchise scams, the provincial government passed the Franchises Act Regulations. Read through these rules to ensure you are protecting yourself when considering a franchise.

Start As a Side Hustle Business

A side hustle in PEI is a type of business that you run on a part-time basis, usually while you work another full-time job. It can involve working for yourself or working for a larger corporation on a freelance basis. You may find that your side hustle is expanding quickly, giving you the opportunity to turn it into a business that you will run full time.

Advantages:

  • You may find something you enjoy
  • Can test the job before fully committing to full-time work
  • Commit as many hours as you want
  • Side hustles are easy to try
  • Network with and gain ideas from other “side hustlers”

Disadvantages:

  • Finding enough income can be challenging
  • Working full time and part time is hard
  • Some side hustles don’t work as full-time gigs

Step #4: Government Regulations to Follow in Prince Edward Island

Regulations are just part of running a business anywhere in the world, and Prince Edward Island is no exception. You need to understand how these regulations affect your potential business idea, so you can plan accordingly and avoid problems.

Decide on a Legal Name

In most cases, you need to have a legal name for your business in Prince Edward Island. The name must be unique versus other businesses operating in the province, so you will need to request a name search that shows you can use your desired name.

When naming your business, you need to follow a few rules, including:

  • Create a name that’s distinctive from others
  • The name should describe your business accurately
  • Avoid words that are misleading about your business

If you are operating a sole proprietorship in PEI, and if you are operating the business under your own name, you do not need to register the business. If you want to operate under a name other than your name, you will have to register your sole proprietorship and register your preferred name.

Additionally, Prince Edward Island is operating a new system for business name registration. All companies must re-register their businesses by mid-2023 in the Online Corporate Business Names Registry.

Decide on the Legal Structure for the Business

Pick among four different legal structures for operating your business in Prince Edward Island. You may want to hire a lawyer to help you figure out which legal structure is appropriate for your situation.

  • Sole proprietorship: This structure is best for a single person operating a business, as it is a simple structure. However, it doesn’t provide protection against liability.
  • Partnership: The partnership is two or more people who operate a business as co-owners with the same proportional share of profits and liabilities.
  • Corporation: Owners of a corporation have shares in the company that reflect the percentage of ownership each owner has. With this legal structure, the owners’ personal finances and liability are separate from the corporation’s finances and liability.
  • Co-operative: A group of people organize and own the co-operative. Each person receives one vote on company ownership matters. The co-operative is a separate entity from a legal standpoint.

Understand the Taxes Your PEI Business Will Owe

In Prince Edward Island, the provincial tax rate for businesses is between 1% and 16%.

If you want to pay as little in business tax as possible – well, you’re not alone. You probably will want to consult an accountant to help you set up your PEI business to create the most advantageous tax structure that fits the type of business you are running. For more information, check out these resources:

The Prince Edward Island government offers several tax credits that may apply to your business.

Decide Whether You Need Businesses Licences and Permits in Prince Edward Island

Another area of government regulation occurs with any licences or permits you must hold to operate your business legally.

  • PEI has a list of permits and licences you may need.
  • BizPaL is a database of permits and licences that businesses in PEI may need to hold to satisfy local, provincial, and federal regulations.
  • Charlottetown has explanations of local permits and licences that it requires for businesses.

Business Laws in Prince Edward Island

Multiple laws are on the books with the PEI provincial government that affect businesses. You need to understand these laws, so you don’t end up violating them inadvertently.

If you find these explanations confusing, your attorney can help you figure out which PEI laws apply to the type of business you are running. For example, if you don’t have employees, many of the laws won’t affect your business.

Step #5: Estimate Your Startup Costs

When starting a new business, you will have multiple expenses before you can open your doors. Such costs are highly variable, depending on the type of business you’re running.

Estimated Cost to Start Certain Types of Businesses

Here are some common small business options in Prince Edward Island and broad estimates about the cost to start these businesses. Understand that your business’ actual costs could be much higher or lower than those listed here, especially if you’re operating in a niche market of a particular industry.

  • Agricultural farm with livestock: Up to $75,000 in startup costs and variable ongoing costs.
  • Agricultural farm with row crops: Up to $100,000 in startup costs and variable ongoing costs.
  • Dairy farm: Up to $75,000 in startup costs and variable ongoing costs.
  • Bed and breakfast: Up to $200,000 in startup costs to purchase a property or up to $20,000 if you already own the property and about $300 per month in ongoing costs.
  • Golf driving range: Up to $100,000 in startup costs and about $200 per month in ongoing costs.
  • Online store: Up to $5,000 in startup costs and about $250 per month in ongoing costs.
  • Exporter of PEI products: Up to $25,000 in startup costs and variable ongoing costs.
  • Freelance blogger: Up to $1,000 in startup costs and about $50 per month in ongoing costs.

One-Time Business Costs in Prince Edward Island

Some common one-time costs that new business owners encounter in PEI include:

  • Constructing a building
  • Remodeling a building
  • Stocking inventory
  • Point-of-sale system
  • Computer system
  • Telephone system
  • Furniture and desks
  • Specialized equipment
  • Machinery
  • Company vehicles
  • Website design
  • Website registration
  • Registering the business
  • Legal advice
  • Accounting advice

New businesses then have costs that occur regularly once they’re up and running, such as:

  • Rent for a building
  • Rent for equipment and vehicles
  • Machinery maintenance
  • Machinery upgrades
  • Replenishing products in inventory
  • Utilities
  • Employees
  • Marketing and advertising
  • Liability and general insurance
  • Renewals of licences or permits
  • Taxes
  • Memberships to business groups
  • Janitorial services
  • Product packing and shipping
  • Interest on money you borrowed

Step #6: Create a Detailed Business Plan

It certainly is exciting to have a business idea that you think will work. However, just because you think it will work doesn’t mean others will agree with you. (Especially people like your brother-in-law, who hates all of your ideas.)

You can use the creation of a business plan to showcase statistics and research that verify why your business idea is a good one. With a well-designed business plan, you may have so much proof about your idea’s potential that even your brother-in-law will be impressed.

Why a Business Plan Is Important

A business plan forces you to take a look at your business idea without having emotion and excitement cloud your judgment. Use research to show potential income generation and projected costs that are realistic. Some items to include in your business plan include:

  • The purpose of the business
  • Your personal strengths and weaknesses
  • Areas where you may need expert help
  • Potential problem areas
  • Estimated costs for startup
  • Estimated ongoing costs
  • Potential customer base
  • Projected income level now and in the future
  • Projected market growth for your business
  • Skills your employees will need

Ultimately, your business plan serves as a blueprint for how you believe the business will perform and grow over a period of years. This is your opportunity to convince others of the viability of your business. Consequently, the more details and research-based information you can include, the better.

How to Construct a Business Plan

The Prince Edward Island provincial government has advice for creating a well-researched business plan. It should consist of two major sections.

  • Descriptive section: Use this written section to explain why you want to start the business, why PEI is the best place to start your business, how you plan to obtain customers, which competitors are already up and running, and more.
  • Financial section: Use the financial section to show projected income and expenses, potential sources of funding, a list of equipment you need, and future projections.

Some entrepreneurs will want to include a marketing plan as part of the business plan, which explains how you will attempt to source customers. BDC has a marketing plan template you can borrow.

Benefits of a Business Plan

Beyond being able to explain your business idea in analytical terms to other people, you may need a business plan before you can take certain steps in developing your business, including:

  • Seeking funding from banks
  • Seeking funding from venture capitalists
  • Seeking business grants in PEI
  • Receiving loans from equipment manufacturers

Step #7: Finding Business Financing

Now for the really hard part of starting a business in PEI – finding the funding you need.

Although some new business ventures need far less startup money than others, nearly any business you want to start must have money before you are ready to seek clients or customers. Startup money pays for equipment, websites, inventory, and more.

Consider the following sources of business financing that you may be able to use.

Your Own Money

The idea of placing your own money into your business may seem pretty scary. However, if you are going to seek financing from others, such investors likely will be leery of giving you their money if you are not willing to place your own money in the venture. Ideas for contributing your own money include:

  • Savings
  • Selling some assets
  • Borrowing against retirement accounts (RRSP, TFSA, or RDSP)
  • Borrowing against your personal assets
  • Borrowing against your personal credit cards
  • Pre-sell your business’ products
  • Use a side hustle to raise extra money

“Free” Money

Money rarely is free, but if you can find some sources of funding that you don’t have to pay back, this is one of the best ways to raise startup money. Such funding gives your business a significant boost toward a successful outcome. Options include:

  • Crowdfunding donations
  • Government grants
  • Corporate grants
  • Charitable grants
  • Business tax credits or rebates
  • Utility rebates
  • Equipment rebates
  • Gifts from the 3Fs – family, friends, and “fools”
  • In-kind support from incubators or accelerators

Loans

Finding a source for a business loan, especially for a business you are starting from scratch, can be extremely challenging. If you are purchasing an existing business that has a history of income generation, you may have a better chance at obtaining a traditional bank loan for your business.

Sources for business loans you may want to research include:

  • Traditional banks
  • Government-based business loans
  • Loans from alternative lenders (like a private lender or a P2P lender)
  • Raising funds through microloans
  • Loans aimed at minority business owners
  • Manufacturer loans to purchase equipment
  • Manufacturer loans to purchase vehicles
  • Purchase order financing
  • Invoice factoring
  • Invoice financing
  • Scientific Research and Experimental Development (SR&ED) financing

Selling Equity in Your Business

Another option is to sell a chunk of ownership in your business in exchange for startup funding. You could incorporate your business and sell shares. You might work with a venture capitalist as well.

Consider this option carefully, as anyone who purchases shares in your business may want to have a significant say in how you operate the business. If you are starting a business so you can have complete control, selling equity may not be a good choice.

Step #8: Accept Help When You Need It

When you choose to start a business in PEI, you probably are looking to take advantage of some skills that you have. If your skills are repairing small engines or shooting beautiful photographs, you may not know all that much about the legal requirements of operating a business or about managing your financial books.

In situations where you don’t have much expertise, hiring professionals to help you is a good idea. Don’t just guess on how to handle certain items and risk making costly mistakes. Some areas where you may want to seek help include:

  • Legal: Setting up your business’ legal operating structure, understanding provincial laws, and comprehending purchase agreements all may require the help of a lawyer.
  • Financial: Paying taxes, managing income and expenses, and obtaining good rates on business loans may require the help of accountants or bankers.
  • Protection: You can ask an insurance agent for advice on what kinds of liability and general insurance you need to protect your business investment and property.
  • General advice: A mentor is someone who can look over your business decisions before you make them and your business plan to give you advice on the likelihood of success.

InnovationPEI has a list of funding options for entrepreneurs on the island province, including Business Supports. The Greater Charlottetown Area Chamber of Commerce has a summary of funding options as well.

Step #9: Don’t Forget to Note Your Accomplishments

Starting a business is not easy. Quite a few people may believe they have the idea for the perfect business in Prince Edward Island, but the majority of them never make it past the idea stage.

If you’re in the process of trying to set up your new business venture, it can feel overwhelming. You may start to wonder if the process will ever end.

When you are having these feelings, take a minute to think about the accomplishments you’ve had to date. You might be amazed at everything you’ve already done, which makes the tasks remaining on your list feel a little less daunting.

Additionally, you can find inspiration and advice in several places around Prince Edward Island. Help from business organizations and fellow entrepreneurs can give you the impetus you need to push you over the finish line, so you can begin serving customers and clients.

PEI Business Startup Resources

The Business Navigator from Prince Edward Island’s provincial government provides quite a bit of general advice on starting a business. Additional options with tips and advice come from InnovationPEI and from Startup PEI.

PEI Business Networking Opportunities

Sometimes, the best way to find advice and inspiration is from other entrepreneurs in Prince Edward Island. Through networking, you also may find other business ideas through which you can expand your offerings.

PEI Business Directories

A business directory is a website that collects a list of local PEI businesses, including contact information. Having your business listed on these directories – with the correct contact information – can help customers find you.

PEI Business Associations and Organizations

Look for organizations in Prince Edward Island that can help you meet fellow entrepreneurs and that can generate inspiration to match their accomplishments. Joining professional associations also can be helpful to your business’ success. You may find some employees or sourcing options for products through these groups.

PEI Business Awards and Competitions

Organizations across Prince Edward Island offer awards in various business categories. Receiving a nomination for an award or winning one can give your business a nice boost in the eyes of fellow entrepreneurs and customers.

If you are a member of a professional organization, such groups may also offer business awards that are worth exploring.

PEI Immigrant Business Entrepreneurs

The PEI provincial government has resources available to those who want to immigrate to Prince Edward Island with the idea of starting or buying a business.

Step #10: Ten Business Startup Mistakes to Avoid

Starting a business requires making some bold moves. However, such moves need to have some thought behind them. Rash decisions based on emotion are sure to lead to problems. If you want to avoid these types of issues in your business venture, start by avoiding these 10 common mistakes new business owners in Prince Edward Island make.

  • Overpromising and underdelivering: As a new business owner, you want to impress your first few customers. However, don’t set unrealistic expectations for what you can accomplish, or you will leave your customers disappointed. It’s always better to under promise and overdeliver than vice versa.
  • Being too general: As we discussed at the beginning, new small businesses may have a better chance at success by focusing on a niche area of an industry. Trying to be all things to all people in your preferred industry could leave you in trouble versus competitors.
  • Straying from your plan: If you spent a lot of time creating your business plan, you shouldn’t abandon it the first time things get tough. You certainly can tweak your business plan as new information becomes available, but don’t give up on it too quickly.
  • Trying to do too much: Part of the appeal of starting your own business is being in charge. (No more answering to a boss!) But you probably can’t do it all alone. Seeking advice and expertise in areas where you need help is not a sign of weakness.
  • Ignoring some entrepreneurial avenues: Starting a business from scratch is a popular idea for new entrepreneurs, but it’s not the only option. You may find something that fits your life better by purchasing an existing business or a franchise.
  • Not putting things in writing: People may have done business with a handshake decades ago in Prince Edward Island. You are not living decades ago, though. Put everything regarding your business in writing. Have a lawyer look over any agreements you don’t quite understand.
  • Not seeking “free” money: Business grants, gifts from family members, and financial help for minority business owners all can give you a better chance of getting your business off the ground. Finding startup money you don’t have to repay is a big deal.
  • Overspending before opening: Once you have startup funding in hand, don’t spend it all right away. Only spend the money you absolutely need to get the business up and running. Hold back a bit of startup money, if at all possible, to help you work through any snags in the first few months of operation.
  • Not buying insurance: Insurance protects your business investment. Should a fire damage your building, property insurance helps you recoup those losses and remain in business. Should someone fall on your property and sue you, liability insurance protects your finances. Make sure insurance premiums are part of your budget.
  • Not being clear with investors: If you decide to accept money from investors, make sure both parties are clear about what the investment means. Some investors may want to purchase a share of your business. Some may consider the money a loan. Some may provide the money as a gift. Even if the investors are family members, make sure the purpose of the money is extremely clear.

Checklist for Starting a Business in Prince Edward Island

  • Come up with your business idea by researching the market and by considering your skills and areas of interest.
  • Select a business that will offer goods or services and that will have a physical location or will be digital only.
  • Figure out how to enter the PEI business market, such as by purchasing an existing business.
  • Understand how PEI’s regulations and laws affect your business.
  • Estimate your startup costs, based on the type of business you want to operate.
  • Create a business plan that shows why your idea is a good one.
  • Seek financing to get your business off the ground.
  • Hire experts for areas of operating the business where your skills are lacking.
  • Seek advice, find inspiration, and take note of your accomplishments!
  • Avoid common mistakes that hurt PEI business owners’ chances of success.

Prince Edward Island Small Business: Complete Guide for Entrepreneurs

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Prince Edward Island may be Canada’s smallest and most rural province, but that doesn’t prevent people from starting a business and having success in PEI.

PEI is known for its red sand beaches, rolling hills, and world-class golf courses. Businesses related to tourism are popular selections.

However, you have many other options when considering operating a business in Prince Edward Island. Our guide provides advice for the most popular industries in PEI, as well as advice for entrepreneurs who want to start a business on the island.

Major Industries in Prince Edward Island

Traditionally, the economy of Prince Edward Island has focused on tourism, agriculture, and fishery for many centuries. Other industries in PEI include information technology, health care, manufacturing, bioscience, and aerospace.

More than 1,300 farms operate on nearly 600,000 acres of land cleared for agriculture in PEI. Farmers here produce potatoes, dairy, beef, pork, grains, and oilseeds, among other items.

Common businesses related to tourism in Prince Edward Island include bed and breakfast facilities, restaurants, golf courses, and cultural attractions.

Fisheries in PEI routinely harvest a number of species, including lobster, blue mussels, oysters, clams, trout, snow crab, rock crab, cod, and giant bluefin tuna, as well as sea plants used in the manufacture of pharmaceuticals.

Best Business to Start in Prince Edward Island: 9 Promising Industries

When brainstorming the best business to start in Prince Edward Island, keep in mind the province’s nine priority growth sectors that show strength now and that are poised for growth in the near future. They include:

  • Agriculture
  • Seafood
  • Aerospace
  • Bioscience
  • Manufacturing
  • Ocean tech and marine
  • Renewable energy and clean tech
  • Information and communications technology
  • Tourism

A government organization called Innovation PEI provides help to small businesses in these areas of the economy. All of Innovation PEI’s work aims to spark growth across Prince Edward Island’s economy.

If you are considering starting a new business, looking for an opportunity related to these growth sectors could help your chances at success.

Service businesses related to agriculture, tourism, and fisheries have shown strength for many decades. But service businesses related to the technology sector are growing, too.

How to Start a Business in Prince Edward Island: Step-by-Step Instructions

1. Start with the basics:

  • Determine which industry best fits your skills
  • Decide how you can make a difference for potential customers
  • Do you prefer providing goods or services?
  • Do you want a brick-and-mortar business, an online business, or a combination of the two?

2. Determine what regulations apply to you:

  • Choose the structure under which you will operate the business
  • Figure out if you need licences and permits from the government
  • Decide which laws and regulations may affect your business
  • Understand which taxes apply to your business
  • Determine which types of insurance you need to run the business safely

3. Create a business plan.

Developing a business plan is an important aspect of starting a business. It gives you a guidebook to move toward your goals. The plan shows others you are serious about this venture, including potential financiers.

The business plan should include:

  • An overview of your business
  • Your plan for sales and marketing
  • How you expect to operate the business day to day
  • How many and what types of employees you need to hire
  • Profit margin expectations
  • Financial expectations for the business in one year, three years, and five years
  • Costs for starting the business

4. Seek funding.

Finding the money you need to start the business is a challenge. If you plan to go to a bank for a business loan, you need a highly detailed business plan in place.

Besides looking for a traditional bank loan, there are hundreds of government funding programs that you may qualify for. Check out our round-ups of the best funding programs:

5. Seek out advice and support from others.

Many successful business owners in PEI and other places wouldn’t be where they are today without help from others in the beginning. If you need some advice, reach out to accountants, lawyers, bankers, or mentors in professional organizations in Prince Edward Island.

Not only can such people provide tips for success, but they also can point out mistakes they made in the early days that you can hopefully avoid.

Prince Edward Island Small Business Grants: Top 5 Grants to Grow Your PEI Business

Business for Sale Prince Edward Island: Business Opportunities in Prince Edward Island

You may have a clear vision for the industry in which you want to operate a business in Prince Edward Island. However, the number of steps and the amount of work required to start a business from scratch can feel overwhelming.

If so, you may be a candidate to purchase an existing PEI business. We collected a number of resources you can use to find business others are trying to sell.

Online Business Marketplaces

A good starting point for seeking businesses for sale in PEI is through an online business marketplace, such as the following:

Real Estate Brokerages

Real estate brokers operating in Prince Edward Island often will list businesses for sale, as well as residential property, retail property, and commercial property. Local PEI brokerages that have some businesses listed for sale include:

Online Classifieds (For Sale by Owner)

Because realtors charge a fee, some business owners may try to sell their businesses on their own. Some sites that list these businesses for sale by owner include:

Business Brokers

Business brokers in PEI focus on matching buyers and sellers of businesses. Because they focus on business transactions, they often can help speed up the process of obtaining a business. They help with negotiations, serving as a go-between for you and the seller.

Business brokers sometimes receive notice of businesses that are coming up for sale before they actually hit the market, giving you an early chance at buying them. These brokers often excel at finding niche businesses, too, if that interests you.

Some of the top business brokers operating in Prince Edward Island include:

Business Registration in Prince Edward Island

The government of Prince Edward Island offers multiple resources for helping PEI businesses register their business name. The process involves going through the following steps:

  1. Choose whether to create a business with the legal structure of sole proprietorship, PEI corporation, or partnership
  2. Choose the business name you want to use
  3. Search the PEI business registry to ensure your desired name is available and unique
  4. Reserve your business name through PEI’s new online registration system and submit your payment
  5. The PEI Registry Office will review your application and advise you about approval or denial

Innovation PEI provides a checklist of steps new businesses need to follow, too.

Business Licences in Prince Edward Island

Depending on the type of business you are starting in PEI, you may be subject to holding certain licences and permits. The following websites can help you figure out what licences you need.

Business Insurance in Prince Edward Island

The provincial government of Prince Edward Island does not require businesses to hold particular types of insurance coverage. However, operating a business without the safety net of insurance coverage is a dangerous idea.

Some of the most common types of business insurance include:

  • General liability for protection against any claims of negligence against you that lead to personal injury or property damage for the victim.
  • Professional liability to protect you against a customer accusing you of causing financial harm because of an error you allegedly made.
  • Commercial property to protect the physical property of the business from things like fire or storms.
  • Business income loss to guard your business against the loss of income because of something beyond your control, such as a power interruption or flooding.

You may need workers’ compensation insurance if you have employees as well.

Business Laws in Prince Edward Island

As you start and operate your business, make sure you are following business laws in effect in PEI, including:

Business Taxes in Prince Edward Island

Taxes are part of life, even for a business owner. Laws and regulations related to business taxes in PEI include:

The current provincial business tax rate in Prince Edward Island ranges from 1% to 16%.

Prince Edward Island Business Immigration

Prince Edward Island is an environment where immigrants are encouraged to start businesses right away. Immigrants can make use of the Work Permit Stream program to start a business and to work toward becoming a resident.

Small Business Resources in Prince Edward Island

For many people, one of the most appealing reasons for starting your own business in PEI is so you can be your own boss … and do the exact opposite of what all your bad bosses did to you! You get to make all the decisions when you are running your own business.

Fortunately, even if you are working for yourself, you don’t have to go it alone. You can access multiple local resources to help you start and grow your business.

Prince Edward Island Business Directories

General Business Directories

Indigenous-Owned Businesses Prince Edward Island

Prince Edward Island Business Associations & Organizations

Prince Edward Island Business News

Other Prince Edward Island Resources for Business

Government of PEI Websites

PEI Business Legislation

PEI Industry Resources

Other PEI Business Resources

Incorporating a Business in Prince Edward Island: Step-by-Step Guide for New Entrepreneurs

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Although it may not be the most enjoyable part of starting a new business, finding just the right legal operational structure for your business is an important step toward eventually achieving success.

One of your options for setting up the operational structure is by incorporating your business in Prince Edward Island. Incorporation delivers some important advantages, but it has some complexities associated with it, too.

To learn more about how to incorporate a business in PEI, we’ve assembled some important tips.

Table of Contents

What Is an Incorporated Business in Prince Edward Island?

When you incorporate your PEI business, it provides a couple of advantages that are not found with other operational structures.

First, all the owners who are part of the corporation receive a number of shares equivalent to the portion of the corporation that they own. This simplifies bequeathing shares to others or even selling shares on a public stock exchange, if desired.

Second – and probably more importantly for the majority of people who choose to incorporate in PEI – the structure of the business is completely separate from the owners. The financial obligations and any liability the corporation has generally cannot bleed over to the personal finances and liability of the owners.

Types of Corporations in Prince Edward Island

You have a few different options for incorporating a business in Prince Edward Island.

  • Limited corporation: This is the most common type of corporation in PEI. It follows the traditional rules for a for-profit incorporated business. In Prince Edward Island, you must form the limited corporation under the Business Corporations Act.

  • Unlimited liability corporation: The ULC is a specific type of corporation in PEI that acts as a corporation under Canadian tax rules, but it also can work as a flow-through entity for U.S. tax purposes. In the ULC, however, the shareholders have unlimited liability for the finances and liabilities of the corporation. This type of business forms under the Business Corporations Act, too.

  • Incorporated co-operative: When running a co-operative in Prince Edward Island, you incorporate it to ensure the business remains a separate legal entity. The act of incorporating it occurs under the Co-Operative Associations Act.

You also can incorporate a non-profit organization, if desired, using Part II of the Companies Act.

Do I Have to Incorporate to Start a Prince Edward Island Business?

The act of incorporating a business in PEI creates a complex legal structure that many businesses do not need. You can instead choose a couple of legal business structure options that don’t require incorporation.

  • Sole proprietorship: This legal structure works well for a single person who has a simple business configuration. If you are operating your sole proprietorship under your own name, you don’t even have to register with the PEI provincial government.

  • Partnership: A partnership involves two or more people who are co-owners of the business and who share equal ownership.

With the sole proprietorship and partnership, the owner or owners have no separation of personal and business finances, which is different from what occurs with the incorporation of a business.

In some Canadian provinces, you can operate a co-operative without incorporating, but this is not an option in Prince Edward Island.

You should seek advice from an attorney if you have any uncertainty about what type of business legal structure you want to use.

Should I Incorporate My Business in Prince Edward Island?

Deciding whether to incorporate your PEI business requires some careful consideration. Incorporation is not necessary for every type of business.

  • Pros of a Prince Edward Island Business Incorporation

  • Creating a separate entity: Through incorporation, the business entity remains separate both financially and legally from the owners’ personal lives.

  • Easier to gain loans: As an incorporated business, traditional lenders may be more willing to give you a business loan versus a sole proprietorship or partnership.

  • Respect from customers: Customers may believe you are operating a large business when you are incorporated, potentially giving you more credibility.

  • Transferring or selling shares: When you own shares in a corporation, you can transfer some or all of your shares to another person in an easy fashion.

  • Continued existence: Should a shareholder pass away, the corporation will continue to exist with the ownership of the others who hold shares and with whomever inherits the deceased shareholder’s shares.

  • Flexible ownership: Corporations can consist of anywhere from one to thousands of shareholders.

  • Cons of a Prince Edward Island Business Incorporation

  • Complexity: An incorporated business has additional complexity versus other types of legal business structures in PEI. You must submit more information to the government than with other business structures, for example, including annual reports.

  • Legal help: When you choose to incorporate, you almost certainly will need to hire an attorney to help with the process. Simplistic business structures often don’t require legal help.

  • Cost: The cost to register an incorporated business in Prince Edward Island is higher, starting at about $305, versus registering a sole proprietorship or partnership in PEI, which starts at about $130.

  • Public record: The information about people involved in owning and running your corporation becomes public record in PEI. If you prefer to keep your ownership share private, a corporation may not be the best option.

  • Should I Incorporate Federally or Provincially in PEI?

Canadian businesses wishing to incorporate have the option of registering in a province (like Prince Edward Island) only or registering federally and provincially.

Incorporating federally gives your business name protection throughout the country. Incorporating federally occurs through the Canada Business Corporations Act.

Incorporating provincially provides protection within the province. If you never plan to do business outside Prince Edward Island, incorporating provincially works well. You’ll incorporate provincially through the Business Corporations Act in PEI.

To do business in Prince Edward Island, you must register with the provincial government, regardless of whether you incorporate federally or provincially. A few provinces in Canada allow you to