Ontario English Catholic Teachers’ Association Peterborough Victoria Northumberland Clarington; acorn30
Ms. Heather Watson
Thank you, Chair. Good afternoon. Thank you for the opportunity to speak with you today. My name is Heather Watson, and I’m a small business owner. My company works directly with other small businesses across the province. Every day, I see challenges and opportunities facing entrepreneurs who make up the backbone of our economy. Small businesses represent 98% of all businesses in this province, yet we are often under-represented in provincial economic policy. I wanted to speak today with you about competitiveness, modernization and the real conditions that small businesses are operating under and how this upcoming budget can help us not only survive but grow. First, I want to talk about tariff supports. Current provincial relief programs focus heavily on industries directly impacted by tariff changes and global trade disruptions. Those sectors absolutely need attention, but the ripple effect extends far beyond them. When large manufacturers and suppliers face cost pressures, they pass those costs downstream. Small B2B and service-based companies absorb those costs with far fewer resources and significantly more risk. Small businesses deserve access to proportional tariff support so we can adapt without compromising jobs or long-term viability. Secondly, I’d like to talk about technology adoption and AI. Technology and AI represent a major opportunity for small businesses to improve productivity and competitiveness, but most lack the capital, knowledge or time to implement these tools properly. They know they need to modernize, but they’re stretched too thin to take on transition alone. Ontario needs targeted grants or tax credits for small businesses adopting AI, digital tools and productivity systems, not only for purchasing that technology but for training and implementation. Without this support, the gap between digitally ready businesses and everyone else continues to widen. The provincial government has often highlighted Toronto as the major centre for technology growth, and the data backs that up. Toronto has become one of North America’s fastest-growing tech centres, with tech employment rising by more than 40% in recent years. We have world-class AI talent and innovation happening right here in Ontario, but most small businesses don’t have access to the resources to participate in that transformation, again, without targeted support for digital adoption. Creating programs and funding to incentivize collaboration between this world-class talent and small business owners will help us as a province innovate faster by creating proof of concept while supporting these small businesses. Third, I want to talk about productivity and operational efficiency. I was going to talk a little bit about red tape, but I know we’ve got two PAs on the red tape reduction ministry, so I think you’ve heard enough about that, I’m sure, in your travels. When it comes to productivity, the province talks a lot about it at the macro level, but it really happens at the micro level within small businesses that are trying to modernize systems, streamline workflows and operate more efficiently. Access to support for process improvement, digital adoption and business modernization is still difficult to navigate. Small improvements in efficiency across thousands of companies add up to major gains for the provincial economy. In both these cases, when we’re talking about technology, productivity and AI, I want to encourage the province to consider rolling out a newly enhanced version of the Digital Main Street program, which some of you may recall has been going on since 2016, I believe, or earlier, partnering subject matter experts with those brick-and-mortar businesses to help them increase their digital literacy and solve real-world business problems. I was fortunate enough that my company was one of the delivery agents for an aspect of this program in 10 different municipalities, and we saw first-hand the impact. That street-level, one-on-one support helped those small businesses grow their collective knowledge and adopt those digital technologies. Fourth, I just want to touch on access to capital. Traditional bank financing is increasingly a challenge for small and particularly rural operators. Many of us need modest, strategic injections of capital: micro-grants, low-interest modernization loans or hiring bridge loans to help bring on staff ahead of revenue growth. These tools help small businesses scale sustainably, which ultimately grows the provincial economy. So consider loans and incentives for small businesses to purchase Ontario-made products, which would amplify the visibility of the Ontario Made program and create a flywheel effect: The more Ontario businesses that are buying from each other, the stronger and more resilient our provincial economy becomes. I’d be remiss if I didn’t touch on the human element of entrepreneurship. Behind every small business is a person, someone who is carrying substantial financial risk, operational pressure and responsibility for their team and for their community. Many small businesses don’t have health and wellness benefit programs for their staff, much less themselves. Mental health support for entrepreneurs is extremely limited, yet the expectations placed on them continue to rise. Subsidized counselling, peer support programs or a mental health tax credit for small business owners would strengthen the ecosystem that keeps our communities strong. Finally, just to touch on the rural reality, since we are in what our MPP calls “God’s country,” up in Peterborough–Kawartha: Rural businesses face unique barriers like inconsistent broadband, smaller labour pools, higher operating costs and limited access to support programs or capital. We want to modernize and innovate just as much as urban businesses do, but we know most of the programs that the government puts out are typically for those larger communities. We need equitable access to tools and resources, so rural Ontario must be included intentionally in decisions about modernization and support. In closing: When small businesses thrive, our communities thrive. We create local jobs, invest in our people, support our communities and strengthen both rural and urban economies. The 2026 provincial budget is an opportunity to invest in the areas that deliver the strongest return: innovation, competitiveness, modernization and the entrepreneurs who drive economic growth every single day. On behalf of the many business owners who do not have the capacity to be here today, thank you for your time and consideration. I urge you to ensure that small businesses are not only acknowledged but prioritized in this budget.