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SMALL BUSINESSES

LEARNING FROM WHAT WORKS:

Leveraging local solutions to make better places

Over 98% of businesses in Canada are small businesses. [1] These enterprises are the backbone of Canada’s economy, driving local development, sustaining communities, and providing employment across urban, rural, and remote regions. A small business is defined as an enterprise with 1 to 99 paid employees, [2] but the majority of the ones in Canada are micro-firms with four or fewer employees, often owner operated and deeply rooted in their communities.

There are 1.34 million small businesses in Canada. [3] Together they employ 6.82 million people nationwide, [4] and contribute about one-third of the GDP generated by the private sector. [5] While many of Canada’s small businesses are located in more populous provinces, per capita there are proportionately more in Yukon, Prince Edward Island, and Western Canada. [6]

In rural and remote areas, where access to services and employment may be limited, small businesses are especially vital to their communities. The closure of even one enterprise can have ripple effects such as reduced access to basic services and weakened social cohesion.

Canadian small businesses are currently facing unique challenges. The country’s aging population is driving a “succession tsunami,” with 76% of business owners planning to exit their businesses within 10 years – a potential exchange of $2 trillion in business assets over the next decade. Yet according to a 2022 survey by the Canadian Federation of Independent Business, only 9% of business owners have a formal succession plan in place. [7] Poorly managed transitions could lead to widespread closures – a blow to any community and one with a disproportionate impact on smaller communities where businesses serve as both economic anchors and cultural hubs.

Small businesses today are also still recovering from the effects of the COVID-19 pandemic. Over 60% of firms experienced revenue declines in 2020, and small businesses were twice as likely as larger ones to report significant losses. [8] Many are still working to rebuild in the face of inflationary pressures, tariffs, and supply chain disruptions. [9] These challenges are especially evident in downtown cores, where shifting consumer habits, hybrid work patterns, and major infrastructure projects have reduced foot traffic and disrupted local commerce.

New businesses are in a particularly difficult situation, especially in smaller municipalities that are more geographically dispersed. Small, rural, and remote communities often lack a permanent, centralized hub for business support and delivery, leaving entrepreneurs without access to mentorship, financing, and professional networks. Younger, innovative firms looking to expand also often struggle to access the needed financing because of their limited tangible assets and management experience. [10]

To address these challenges, communities and organizations across Canada are implementing a range of innovative strategies. This collection highlights several of these solutions:

  • Support for succession planning
  • Programs and incentives for revitalizing downtown cores
  • Entrepreneurship supports to help new and emerging businesses

Initiatives that support succession planning keep vital local enterprises in operation, maintaining continuity of services, employment, and community identity. Mentorship, financing options, and specialized succession planning assistance can help businesses stay in their communities.

Revitalization efforts focus on sustaining downtown cores and commercial districts, often led by Business Improvement Areas (BIAs). BIAs promote and distinguish their districts as business and shopping destinations, and they play an essential role in supporting civic improvements. [11] Across Canada, BIAs provide an avenue for organizing and financing support programs, highlighting how coordinated long-term strategies strengthen the resilience of local businesses.

Entrepreneurship supports play a critical role in nurturing new and innovative businesses. Regional business hubs, incubators, and accelerator programs can help address barriers to long-term success by creating pipelines for innovation and fostering collaboration. These initiatives are particularly important in smaller or remote communities, where limited resources can make it challenging for entrepreneurs to thrive.

Small businesses turn ideas into realities. They make each of our communities unique. A key component of economic growth, they are also social hubs for many neighbourhoods. The initiatives featured in this category address the full life cycle of small business development – from preserving existing enterprises to revitalizing commercial districts and fostering the next generation of entrepreneurs. They are evidence that local organizations are at the forefront in supporting the enterprises that keep their communities running through creative, place-based strategies to sustain and revitalize urban centres, small towns, and rural communities alike.

Showing 16 solutions

In 2023, the Community Sector Council of Newfoundland and Labrador (CSCNL) launched the Social Innovation Lab and its flagship pilot, the Social Enterprise Through Acquisition (SETA) program, to preserve small businesses while diversifying revenue streams for community organizations. SETA connects community organizations with businesses available for acquisition in rural Newfoundland and Labrador to ensure that these businesses continue to serve their communities. Potential buyer organizations can access up to $15,000 to cover transition-related costs. They also receive one-on-one assistance throughout the process. The program supports a variety of acquisition models, including full business purchases, worker co-operatives, and transfers of specific assets, such as equipment or facilities. The SETA program helps business owners by playing a confidential matchmaking role, identifying buyers who share similar values through outreach and partners such as community business development corporations, and creating profiles for prospective buyers. To ease organizational strain on community organization buyers, CSCNL also aims to connect them with wage subsidies, student placements, and newcomer employment programs – or, in some cases, to facilitate acquisitions that include existing employees. For community organizations that are not yet ready to venture into acquisition, CSCNL offers revenue diversification training (the Thriving Non-Profits program) in partnership with Scale Collaborative and the Community Foundation of Newfoundland and Labrador. CSCNL demonstrates how social enterprise models can preserve critical services while building long-term resilience. Succession planning, often treated as a private matter, can instead be a powerful tool for community development, economic stability, and social innovation.

Downtown London BIA

Downtown London Trails

London, Ont.

Downtown London Trails is a creative initiative to increase foot traffic in the city’s central core, with the goals of strengthening economic vitality and raising consumer awareness of downtown businesses. The program offers a variety of themed trails – such as “Bakery and Patisserie,” “Crisp Days and Cozy Nights,” “Music and Arts,” and “Holiday Experiences” – with each one highlighting a selection of businesses in downtown London. Using Bandwango software, the BIA adds businesses to an interactive digital map where consumers can sign up, check in at different locations, and earn points toward prizes such as downtown merchandise and gift cards. To ensure a successful experience, the BIA also gave businesses training and support. While at first it was a challenge to get businesses to participate in an unfamiliar program, direct outreach and positive testimonials helped build momentum. By 2024, the initiative exceeded its objectives, with 133 businesses participating and 20,605 check-ins recorded. That year the program distributed $50,000 in Downtown Dollar Gift Cards, ensuring that the prize money stayed local. These created a 65% up-spend, which generated an additional $32,500 in economic activity by the end of 2024. The program has continued to expand its impact into 2025, reinforcing its role as a catalyst for both community vibrancy and economic resilience.

Downtown London BIA

Downtown Momentum Report

London, Ont.

Downtowns across North America are still recovering from the impacts of the pandemic, compounded by public health and homelessness crises. Real progress is being made, but these improvements are not always visible or well understood by those outside these districts. To showcase the measurable, even transformational, changes happening in the central core of London, Ontario, the Downtown London BIA created the Downtown Momentum Report. Produced in collaboration with City of London staff and informed by data from Environics and the BIA itself, the report communicates to the BIA’s 1,400+ member businesses the progress that has been made and confirms the City’s commitment to revitalizing the downtown, outlining coordinated strategies for investments and programs in five areas: Economy, Vibrancy, Inclusion, Resilience, and Identity. The Momentum Report also serves to recognize the City of London and other partners for their support and investments, provides media with credible data to share downtown stories, encourages investors to build on the momentum of downtown projects, and offers valuable information for students studying urban issues. Ultimately, the report helps shape a more accurate and positive narrative, reinforcing why continued investment in a healthy and vibrant core is essential. report helps shape a more accurate and positive narrative, reinforcing why continued investment in a healthy and vibrant core is essential.

Miconex Canada

Downtown Gift Cards

Across Canada

Shifting consumer habits, reduced foot traffic, and tariffs have made it harder for local businesses to compete with global online retailers. To help redirect spending back into local economies, Miconex Canada introduced the Downtown Gift Card program, a simple but effective tool that encourages residents and visitors to shop locally. These “closed-loop” cards can only be redeemed at participating businesses within a defined district, ensuring that every dollar stays in the community. The program is now active in more than 42 Canadian towns and regions – from Grande Prairie to P.E.I. – and over $15 million in Downtown Gift Cards have been sold to date, supporting independent retailers, restaurants, and service providers of all sizes. Miconex works alongside BIAs, chambers of commerce, municipalities, and local sponsors to launch branded programs tailored to each district, using robust reporting tools to demonstrate measurable impact. These in turn attract additional support from corporate and government partners, who see the cards as a way to strengthen community ties and drive local growth. By turning strong consumer demand for shopping locally into direct economic results, Miconex is helping downtowns across Canada prosper and thrive in the face of ongoing change.

Downtown Van

The Downtown Vancouver Economic Dashboard

Vancouver, B.C.

The Downtown Vancouver Economic Dashboard is a publicly accessible online tool that illustrates the economic performance, activity, and overall health of the city’s downtown district. Featuring proprietary data and curated insights from the city’s Economic Development team, it provides regularly updated information on key indicators such as annual visits, storefront vacancy rates, and retail spending to track the shifting patterns in leasing, retail, transit, and visitor activity over time. While healthy downtown districts are an essential part of vibrant cities, there is often a lack of timely, accessible data that can inform city leaders and community members alike about their status. Downtown Van, a BIA, launched the dashboard to address this need, consolidating previously fragmented economic analysis into a holistic picture. It has recently been used to measure the success of downtown pilot programs such as the summer pedestrianization of the Gastown district. More importantly, Downtown Van’s leadership in community data has informed broader conversations on how governments can support other BIAs across British Columbia to access similar insights, with partnerships underway with the Canadian Urban Institute (CUI) and the Business Improvement Areas of British Columbia (BIABC) to help further democratize community data.olumbia to access similar insights, with partnerships underway with the Canadian Urban Institute (CUI) and the Business Improvement Areas of British Columbia (BIABC) to help further democratize community data.

Main Street Unionville

Cash Coupons and Main Street Restoration Contest

Markham, Ont.

Main Street Unionville, one of Markham’s best-loved destinations, has been undergoing a much-needed restoration. With construction scheduled during the summer – the busiest season for local businesses – there was a risk of reduced foot traffic and lost revenue. To help businesses retain customer traffic, the Main Street Unionville BIA launched a pair of creative marketing and support programs in partnership with the City of Markham, Destination Markham, local hotels, and the Markham Board of Trade. Phase 1 (April–May 2025) was the Main Street Cash Coupons program, in which 8,000 coupons redeemable at about 20 local businesses were distributed across Markham. This initiative generated an estimated $65,000 in economic impact and attracted more than 25,000 visitors, 60% of whom were first-time or infrequent patrons. Phase 2 (June–November 2025) featured the Main Street Restoration Contest, encouraging shopping at Unionville BIA businesses through receipt-based entries. The contest incentivized local shopping with total prizes of over $20,000 in $100 and $50 gift cards redeemable at participating businesses. These initiatives helped boost foot traffic and strengthen business confidence, demonstrating how Main Street districts can remain vibrant even through a major disruption.

ShopLocal2Win

TapCanadian2Win

Across Canada

Marketing is a persistent struggle for Main Street businesses and BIAs across Canada. Restricted budgets, limited in-house capacity, and the absence of the high-profile loyalty programs available at chain stores can reduce the direct engagement that builds a long-term customer base. To help overcome these barriers, marketing consultancy ShopLocal2Win (SL2W) launched TapCanadian2Win, a six-week national “shop local/choose debit” contest, in late 2025. Customers who submitted receipts of $15 or more from a local business were entered into weekly $5,000 draws; debit users were eligible for an additional $5,000 bonus, incentivizing payments with lower transaction costs for retailers than credit cards. The owner of the shop that generated each winning receipt also received a cash prize. SL2W has successfully implemented similar campaigns for local BIAs, but with TapCanadian2Win backed by Interac as a national sponsor, the program’s larger scale reduces marketing costs for BIAs by 75% and eliminates the burden of finding local sponsors. The initiative is expected to generate $20 million nationwide in measurable economic impact by encouraging more frequent local purchases and lowering transaction costs for small businesses. The SL2W platform can provide reports on key performance indicators and return on investment, giving BIAs transparent data to demonstrate the program’s impact. TapCanadian2Win has the potential to be a powerful model for driving consumer loyalty, reinforcing business confidence, and ensuring the long-term vitality of Main Streets.

City of Mississauga

IDEA Mississauga

Mississauga, Ont.

The lack of access to equitable and accessible support for entrepreneurs is an ongoing challenge in the City of Mississauga. IDEA Mississauga is a City-led initiative that helps fill this gap by supporting entrepreneurs at all stages of their careers through a collaborative approach with local partners. In 2023, the project saw the opening of IDEA Square One, an entrepreneur support centre located in Ontario’s largest mall. It has expanded awareness and engagement with the initiative through targeted outreach, and now supports over 1,000 small businesses and startups annually. With a focus on inclusion, IDEA partners with YSpace (York University’s entrepreneurship and innovation hub), University of Toronto Mississauga, Sheridan College, the Black Entrepreneurship Alliance, Altitude Accelerator, and Canada’s Queer Chamber of Commerce to deliver culturally relevant programs and mentorship. Flagship initiatives like EmpowHER and Step-Up, which prioritize underrepresented founders, have doubled in size. In its first two years, IDEA Square One has provided over 500 consultations, helped launch 100 businesses, and raised over $12 million in funding for ventures supported by the program. With 80% of participants identifying as equity-deserving, IDEA fosters a trusted, community-driven ecosystem for inclusive growth. equity-deserving, IDEA fosters a trusted, community-driven ecosystem for inclusive growth.

Town of Caledon

Humber River Centre

Caledon, Ont.

In the fast-growing town of Caledon, Ontario – a community defined by both expansive rural geography and rapid development – supporting local businesses and entrepreneurs has been a unique challenge, and a centralized business support hub was long overdue. In 2024, the Town of Caledon launched the Humber River Centre (HRC), transforming a former fire hall in downtown Bolton into an award winning, sustainable facility offering business support, coworking spaces, and economic development services. The HRC convenes key partners, including local business associations and regional innovation centres, to deliver coordinated programming and tailored support for entrepreneurs. To further strengthen early-stage business support, Caledon partnered with Toronto Metropolitan University’s tech incubator, DMZ, to pilot a three-year program that provides guidance on market readiness, access to funding, and mentorship – with a strong emphasis on equity and inclusion. Recognized by the International Economic Development Council for leadership in local economic growth, the HRC is proving that rural and mid-sized communities can deliver big-city innovation – and build resilient, thriving economies from the ground up.

Hackforge

Spark Program

Windsor, Ont. & Squamish, B.C.

Small tourism operators often face barriers to launching or growing their ideas due to limited access to funding, mentorship, and strategic support – challenges heightened by the sector’s dependence on seasonal trends and regional economic conditions. Hackforge, a non-profit organization that fosters innovation and entrepreneurship, aims to address these issues through the Spark Program, part of its Tourism Innovation Lab. The program supports early-stage tourism entrepreneurs and community-driven ideas that promote a more accessible, inclusive, and sustainable tourism ecosystem in Canada. Each round of the program, which is delivered in Ontario and British Columbia, focuses on a specific theme or target group and is customized in partnership with municipalities, tourism organizations, provincial ministries, Regional Innovation Centres, the Canadian Queer Chamber of Commerce, and financial institutions. Applicants – from new business owners to individuals with untested ideas – complete a simple intake process, with shortlisted candidates invited to pitch to a panel of judges. Winners receive a $3,000 to $5,000 micro-grant and mentorship over three months to refine their ideas, build networks, and gain confidence, with some receiving additional support such as website development. By empowering local entrepreneurs to transform creative ideas into viable ventures, “Spark” helps strengthen regional economies and ensures the tourism sector remains innovative and inclusive.

STACKT

STACKTX

Toronto and Ottawa, Ont. & Vancouver, B.C. & Calgary, Alta.

STACKT Market in Toronto is the largest shipping container market in North America. It has become a shared space for small businesses, global brands, and community events, one that also supports the local economy. Building on this model, STACKT launched STACKTˣ in 2023, a national platform designed to help small businesses launch and grow. At its core, STACKTˣ is an eight-week accelerator program that offers entrepreneurs mentorship, marketing, and operations support along with a one-month free retail lease in a high-foot-traffic area in its modular market space. Operating in Toronto and Ottawa, with expansions planned for Calgary, Vancouver, and beyond, STACKTˣ has already attracted over 7,500 small businesses and 1,600 Storefront Grant applicants, enabling 30 recipients to open pop-up shops. By providing real-world exposure, expert guidance, and accessible retail opportunities, STACKTˣ fills a gap in Canada’s entrepreneurial ecosystem. Programs like this not only help emerging businesses thrive but also generate local jobs, activate communities, and strengthen urban resilience. STACKTˣ shows how place-based innovation can translate into national impact – empowering entrepreneurs while redefining how cities grow, collaborate, and sustain economic vitality.

City of Regina

House to Commercial Guidelines

Regina, Sask.

Many of the City of Regina’s most beloved local businesses operate in former single-family homes that were converted over time. However, bringing these properties up to modern building codes can be costly and complex, particularly for small business owners managing limited budgets and tight timelines. Recognizing that these challenges were discouraging investment and leaving some buildings vacant, the City invested in research and analysis to make conversions more predictable and affordable. Municipal staff developed a set of pre-approved, code-compliant alternatives to address common barriers faced by owners. The result is a practical user guide that connects business owners to Service Coordinators, streamlines the approval process, and provides links to detailed engineering resources for professionals. Applicants for building conversions now benefit from dedicated regulatory support, clearer statements of construction scope, and access to City incentive programs that can offset costs. By establishing these accessible guidelines, the City has created a pathway that prioritizes local business vitality while preserving 60-to-100-year-old homes rich with character – a win for both Regina’s downtown and its residents.

Stratford Perth Centre for Business

Caffeine and Commerce

Stratford, Ont.

In summer 2025, the Stratford Perth Centre for Business piloted Caffeine and Commerce, a program that aims to create a casual, inclusive, and low-pressure environment for small business owners to connect. The program responds to a growing desire among young and diverse entrepreneurs in small cities for authentic, community-based connection points that recognize their experiences, challenges, and identities. Caffeine and Commerce addresses this need by offering an accessible alternative to traditional, formal networking events: biweekly meetups at rotating cafes across Stratford, Ontario, with no registration, formal agenda, or icebreakers – just a welcoming space to drop in, ask questions, share ideas, and make genuine connections over coffee. Organizers compiled recurring questions and collected wisdom from these sessions into short, shareable resources such as mini-guides, reels, and live Q&As. While the initiative began as a summer pilot, its small-scale, human-centred approach to business support has the potential to be formalized into a year-round program with backing from municipal, tourism, and innovation partners, and to be adapted in other communities.

LOCO BC

Commercial affordability for independent businesses

Vancouver and Victoria, B.C.

Local economic development and business support organization LOCO BC is tackling a growing issue facing independent businesses today: commercial affordability. By gathering and analyzing data from a wide range of stakeholders, including developers, property owners, leasing agents, property managers, and business and community associations, LOCO BC is aiming to discover what defines a strong tenant mix and how affordability can be measured and sustained over time. This province-wide initiative responds to the growing challenge of rising costs and unstable lease rates, which make it difficult for small, independent businesses to remain in their spaces over the long term. This results in high tenant turnover, neglected properties, and premature deterioration of buildings, which diminishes the overall quality of local commercial areas. With its commercial affordability initiative, LOCO BC is bridging gaps between small business owners and the development community, seeking to dispel the myth that local businesses are riskier tenants compared to larger, more established companies. The feedback received has been overwhelmingly positive, showcasing the importance of commercial affordability for small, local businesses to the long-term health of communities and local economies.

marketcityTO

Public market network

Toronto, Ont.

Toronto is home to over 160 public markets: farmers' markets, vintage and antique markets, artisan and craft markets, affordable fresh food markets, and more. The key role that such markets play in supporting local businesses and building strong, connected communities is often overlooked. Enter marketcityTO, led by a growing grassroots network of former market managers supporting Toronto’s public markets sector through collaborative projects and advocacy that help residents and municipal representatives recognize the value of public markets. Working with market managers, marketcityTO has led initiatives such as Toronto’s first interactive market map, the Scarborough Fresh Food Pilot, and the 11th International Public Market Conference. Their engagement with councillors, City staff, and other stakeholders informed the City’s first-ever Public Markets Action Plan and led to a dedicated full-time staff position. In 2025, marketcityTO partnered with the City to expand Public Markets Week – a citywide celebration of the culture, diversity, and entrepreneurship that markets bring to Toronto’s neighbourhoods. A pilot program provided funding for markets to host programming as part of the event. Ten markets across Toronto collaborated with local organizations and small businesses on initiatives such as Indigenous-led medicine bag workshops, willow weaving, and cooking demonstrations. Leveraging Toronto’s Love Local campaign, marketcityTO continues to highlight that supporting public markets is one of the most effective ways to strengthen a municipality’s small business ecosystem and community connections.

Shorefast Institute for Place-Based Economies

Economic Nutrition

Across Canada

With consumer spending accounting for roughly 60% of Canada's GDP, the impact of purchasing decisions can extend far beyond the transaction itself. Many people want to buy local, but given the complexity of global supply chains and ownership structures it can be difficult to determine a product’s origins – standard labels such as “made in” or “product of” reveal little. The Shorefast Institute’s Economic Nutrition certification program closes this information gap by making the flow of dollars spent at a business or other organization more visible. Certified organizations trace each dollar they spend in a fiscal year and report the results on a label that meets Shorefast’s standard. Modelled on a food nutrition label, an Economic Nutrition certification mark traces the money that an organization spends in terms of geography (percentages to local, regional, national, and international destinations) and of activity (percentages to labour, material, business operations, wages and salaries, etc.). This transparency allows people to see where their money goes and how it strengthens local economies. Certified organizations include private businesses, social enterprises, non-profits, municipalities, chambers of commerce, and Indigenous organizations, demonstrating the concept’s adaptability across sectors and regions. At a time when governments are increasingly required to “buy Canadian” and public interest in supporting local is growing, the initiative's standardized framework for measuring and communicating impact has become more critical. While the model was first developed on Fogo Island, Newfoundland, in 2018, it has expanded to include partners in New Brunswick, Ontario, Saskatchewan, and British Columbia, showing the widespread value of connecting commerce with communities. 

References

[1]

Innovation, Science, and Economic Development Canada, Key Small Business Statistics (ISEDC: 2025), 6,URL.

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[2]

ISEDC, Key Small Business Statistics, 5.

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[3]

Statistics Canada, “Business Counts in Rural and Small Town Canada: Interactive Dashboard” (Government of Canada, last modified September 15, 2025), URL. This figure is for 2025.

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[4]

Statistics Canada, “Employment for all employees by enterprise size, annual” (Government of Canada, March 27, 2025), URL. This figure is for 2024, and excludes unclassified businesses.

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[5]

SEDC, Key Small Business Statistics, 7. This figure is for the period 2017–2021.

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[6]

Marwa Abdu, A Portrait of Small Business in Canada: Adaption, Agility, All at Once (Canadian Chamber of Commerce – Business Data Lab, 2024), Table 1. URL.

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[7]

Canadian Federation of Independent Business, Succession Tsunami: Preparing for a Decade of Small Business Transitions in Canada (CFIB, 2022), 2. URL.

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[8]

Marwa Abdu, Portrait of Small Business in Canada, 18.

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[9]

Marwa Abdu, Portrait of Small Business in Canada.

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[10]

Organisation for Economic Co-operation and Development, OECD Economic Surveys: Canada 2025, no. 12, URL.

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[11]

Toronto Association of Business Improvement Areas, “Benefits of a BIA” (2023). URL.

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