Supercharging Small Business in Ontario: The Next Move
In April 2025, Ontario’s Progressive Conservatives open Ontario’s parliament with their third majority government. The next four years present a clear opportunity to start building an economy that truly works for Ontario’s locally owned small and medium businesses.
Small businesses make up 97.7% of employer businesses in Ontario. That’s 444,000+ businesses keeping our communities vibrant, creating jobs, and driving innovation. And yet, rents are crushing them, insurance is bleeding them dry, and retiring business owners are having difficulty finding local buyers.
The PC government has a strong mandate to build a powerful grassroots economy across the province. But tweaks won’t cut it. If Ontario is serious about economic strength, we need bold action beyond tax cuts.
A Plan for a Stronger Small Business Economy
- Commercial Rent Modernization – Right now, landlords can jack up rents overnight, and small businesses just have to take it. That’s not a free or a fair market. Ontario needs transparent and robust leasing laws and standardized agreements so small business owners can plan for the future without fear of sudden, brutal rent hikes.
- NextGen Ownership Fund – Thousands of small business owners are set to retire, and if we’re not careful, their businesses will disappear or get scooped up by faceless corporations. A NextGen Ownership Fund would help entrepreneurs buy and transition these businesses – keeping wealth and decision-making local instead of exporting it to foreign investors and hedge funds.
- Local Ownership Mortgage Program – Too many entrepreneurs rent indefinitely, locked in a cycle where landlords profit off their hard work. Just like residential housing, many viable businesses have been priced out of ownership. A tailored mortgage program would help more small business owners buy their commercial spaces, building equity and security instead of pouring hard-earned money into someone else’s pocket.
- Business Insurance Reform – Small business insurance feels like a rigged game – skyrocketing costs, denied claims, and no real competition. Ontario needs more competition and regulatory changes to ensure affordable, accessible coverage that actually works for small businesses.
Small Business is Not a Side Project
The usual small business playbook – tax cuts and one-off grants – isn’t enough. Small businesses don’t need temporary handouts; they need a playing field that isn’t tilted against them. That means:
- Policies that protect small businesses from exploitative landlords.
- Programs that turn employees into future business owners.
- Structural changes that make small business ownership a pathway to stability, not just survival.
Other jurisdictions are getting this right—Ontario can too. In Singapore, targeted support for small enterprises has strengthened local innovation. South Korea’s Ministry of SMEs and Startups has helped businesses scale while keeping ownership local. Texas’ business-friendly policies have fueled job growth and economic expansion. Ontario can adopt proven strategies that enable small businesses to thrive instead of forcing them to operate in survival mode.
One way to start is by taking inspiration from Canada’s Digital Main Street program. During the pandemic, this initiative helped small businesses modernize through e-commerce and digital upgrades.
A similar model – a $2,400 grant to support higher wages tied to a career growth plan in SMEs – could jump-start workforce investment, giving small business owners the confidence to offer better wages, improve retention, and reinvest in local economies.
Even at the smallest of employers, this program could upskill workers, increase business revenues, and put wealth into frontline employees’ pockets – circulating cash where it’s needed most. We believe it would also encourage small employers to make further investments in their workforce, raising Canada’s overall productivity and worker retention rates.
Ontario can also look at how other jurisdictions finance small business growth. Community Development Financial Institutions (CDFIs) in the U.S. provide targeted lending to small businesses that struggle with traditional bank financing. The European Union’s Small Business Act ensures that regulations are designed with small businesses in mind. Poland’s Special Economic Zones offer tax incentives for locally owned businesses. Ontario can integrate these ideas to create an ecosystem where small businesses don’t just survive – they thrive.
Let’s stop managing decline. Let’s start building something stronger.
Learn more about our policy vision for Ontario’s small business ecosystem – Ontario Policy for Prosperity | Better Way Alliance.
Recent Comments