Hiring a student intern: what small businesses gain, and how to make it work

Small business owners often tell us the same thing about interns: good idea, no time. Supervising a student takes hours the owner does not have, and the student leaves just as they become useful.

The employers who have tried it tell a different story. Two surveys published in 2026, one by the Canadian Federation of Independent Business and one by CEWIL Canada, the national association for work-integrated learning, give the clearest picture yet of what small firms get from hiring students.

What employers report

Among the small businesses in CFIB’s survey that had used co-op or internship programs, 73% went on to hire the student permanently, 87% were satisfied, and 73% found these programs more effective than their other ways of hiring. CEWIL’s survey of 1,121 employers found that about 70% saw pre-screening future hires as very or extremely beneficial. An internship is, among other things, a long and low-risk job interview.

Research on graduates points the same way. A 2023 C.D. Howe Institute study found that graduates with work-integrated learning, especially co-op, earned more and were more likely to work in their field. Students who have done real work arrive better prepared, and employers who hosted them get first pick.

Why small firms hesitate

The concerns are real, and the surveys name them. Small businesses that hire young people cite motivation and attitude (59%), lower productivity at first (51%), retention (41%) and the cost of training and onboarding (40%). CEWIL found that micro and small organizations report more challenges with placements than larger ones (67% against 57%), and among businesses that have never hosted a student, the main reasons are staff time (43%), lack of suitable work (35%) and cost (22%).

Two-thirds of micro organizations said financial support would help most. Ask the school about wage subsidies, since several federal and provincial programs fund student placements, and their terms change from year to year.

Five ways to make an internship pay off

1. Give the student one real project. “Help around the office” leads to a frustrating term for both sides. A defined project with a clear result, such as cleaning up the customer list, mapping a process or testing a new booking tool, gives the student something to own. Start from your business goal, as in the Zenith Goal approach.
2. Name one supervisor and protect an hour a week. A short weekly check-in prevents most problems. It is the single best predictor of a good placement we have seen.
3. Use the school’s structure. At Royal Roads, every internship project has a faculty supervisor who guides the academic side and the research method. That support protects the quality of the work for the business and the student.
4. Open the doors early. Access to data, tools and people in the first week saves weeks later. Prepare logins and introductions before day one.
5. Plan the ending from the start. Agree on what will be handed over, written down and kept running after the term. Decide early whether a permanent role is possible, so a strong student does not take another offer while you are still thinking.

An example close to home

Pivot Homes Group in Victoria hosted a Royal Roads master’s student for an internship that grew into three sprints: a growth strategy, a cleanup of the team’s systems and a new design for its digital channels. You can read what the team learned.

TopicsHiringInternshipsStudents