Why Supporting Small Businesses in Toronto Matters More Than Ever?

Every time we choose where to spend our money, we help shape the future of our city.

Toronto is known for its diversity, creativity, and energy. From independent cafés and family-owned restaurants to neighbourhood barbers, tattoo studios, boutiques, and local service providers, small businesses are part of what makes our city unique.

They give neighbourhoods their character, create places for people to connect, and turn ordinary streets into destinations worth exploring.

But small businesses are more than just part of Toronto’s identity. They are an important part of its economy. And the choices we make as consumers can help determine whether they grow, survive, or disappear.

Small businesses are a big part of Toronto’s economy

The numbers tell an important story.

According to the City of Toronto’s 2024 Toronto Employment Survey, businesses with fewer than 50 employees accounted for 93.2% of Toronto’s business establishments and 31.1% of total employment covered by the survey. In other words, small businesses make up the overwhelming majority of establishments counted across the city.

At the national level, the picture is just as significant. Innovation, Science and Economic Development Canada reports that small businesses employed approximately 5.8 million people in Canada in 2024, representing 46.6% of private-sector employees.

These figures demonstrate that small businesses are not a minor part of the economy. They are an essential source of jobs, services, and economic activity.

Sources: City of Toronto — 2024 Employment Survey | Government of Canada — Key Small Business Statistics

Where you spend your money matters

Imagine choosing between two businesses for your morning coffee, lunch, haircut, or next night out.

Both might offer what you need. But when you choose a local independent business, more of your spending may circulate within the local economy through the business’s operations, local suppliers, employee wages, and other purchases.

A 2023 study by the Canadian Federation of Independent Business (CFIB), Small Business, Big Impact, estimated that 66 cents of every dollar spent at a small Canadian retail business stayed within the local provincial economy. The report compared this with 11 cents for multinational businesses with physical locations in Canada and 8 cents for online giants.

These are estimates from a study focused on retail businesses, not a guarantee for every purchase. Still, they illustrate an important principle: where we shop can influence how much economic activity remains closer to home.

Source: CFIB — Small Business, Big Impact

Choosing local does not mean you must stop shopping at larger retailers. It means being more intentional about the choices you have. Sometimes, choosing an independent café over a chain, a neighbourhood restaurant over a large franchise, or a local service provider over a national company can make a meaningful difference.

The impact goes beyond money

Supporting small businesses can benefit a neighbourhood in several ways.

1. Helping create and sustain jobs

Local businesses employ people who live in our communities. When businesses have steady customers, they have a better opportunity to maintain their operations, retain employees, and potentially create new jobs.

2. Keeping neighbourhoods distinctive

Independent businesses often bring character and variety to local streets. A unique bakery, a family-run restaurant, or a small independent shop can give a neighbourhood its own identity and make it more appealing to residents and visitors alike.

3. Building stronger communities

Small business owners often develop personal relationships with their customers and neighbours. Many also support community events, local initiatives, and charitable causes. CFIB’s 2023 research found that 97% of the small independent retailers surveyed contributed to their local communities.

4. Encouraging entrepreneurship and innovation

Small businesses give people the opportunity to turn an idea, a skill, or a passion into a livelihood. Supporting them helps sustain an environment where new concepts, independent creators, and future entrepreneurs can have a chance to grow.

Small businesses need more than our sympathy

Many of us say we love independent businesses. We enjoy their atmosphere, appreciate their service, and want our neighbourhoods to thrive.

But good intentions alone do not pay rent, cover wages, or keep the lights on.

A business needs customers who return, recommend it to others, and choose to spend money there. A kind comment is welcome, but an actual purchase can make a more direct economic difference.

The good news is that supporting local businesses does not always require spending more money. It can start with small, everyday decisions:

• Choose a local café for your next coffee.
• Try an independent restaurant in your neighbourhood.
• Book your next haircut or appointment with a local professional.
• Buy a gift from an independent shop.
• Follow local businesses on social media and share their work.
• Leave an honest review after a good experience.
• Recommend a business to friends, family, and colleagues.

Every action has a different impact, but together these choices can help local businesses reach new customers and build lasting relationships.

Toronto belongs to all of us

Toronto is built by more than its skyline, major attractions, and big corporations. It is also built by the people opening their shops early in the morning, preparing meals late at night, creating art, offering services, and taking risks to build something of their own.

These businesses deserve to be seen, discovered, and given a fair chance to earn our support.

At DONNIE TO, we believe every local business has a story worth telling. Our city is full of hardworking people, original ideas, and places that deserve more attention. By discovering these businesses and sharing their stories, we can help more people see what their neighbourhoods have to offer.

The next time you decide where to spend your money, take a moment to think about the impact of that choice.

Choose local when you can. Discover something new. Support the people who make Toronto what it is.

Choose where you put your money. Choose #TorontoLocalsFirst.

Now it’s your turn: What’s one Toronto small business you think more people should discover? Share its name in the comments and help put it in the spotlight.