Strengthening the Backbone of Ontario’s Small Businesses

Michael: Minister Tangri, the Ontario Budget introduced several measures aimed at supporting small businesses, including tax relief and regulatory simplification. How do these initiatives address the most pressing challenges facing small and mid-sized businesses?

Minister Tangri: Affordability is top of mind for both people and businesses. With global uncertainty, especially U.S. tariffs, many Ontario businesses have been in a “wait-and-see” mode. We want them to feel confident to grow and hire.

One of the most impactful measures is the reduction of the small business corporate income tax rate from 3.2% to 2.2%, a 31.25% cut. This can save a business up to $5,000, which they can reinvest in equipment, employees, or operations. It’s direct, meaningful support during challenging times.

Michael: Regulatory modernization is a recurring theme in Ontario’s economic strategy. What principles guide your approach to reducing red tape and administrative burden?

Minister Tangri: When we formed government in 2018, we heard loud and clear that Ontario’s regulatory burden was discouraging business growth. We acted immediately.

Through our twice-annual Red Tape Reduction bills, we’ve saved businesses over $10 billion this year alone. If a federal and provincial regulation do the same thing, we don’t need duplication. We tackled those early. But ongoing progress depends on feedback from professionals, including RPAs, who tell us what their clients are facing. We listen, and we act.

Michael: Nationally, the federal government recently passed the One Canadian Economy Act to reduce interprovincial trade barriers. How is Ontario preparing to respond, and what impact do you foresee on small business growth and labour mobility?

Minister Tangri: For years, it was easier to do business with the U.S. than with another Canadian province. We wanted to change that.

Ontario removed barriers for Red Seal trades, allowing qualified workers from other provinces to work here immediately, which is critical for major infrastructure projects. We also identified 23 areas where Ontario was willing to remove protections if other provinces reciprocated. Most provinces have now signed memorandums of understanding with us. There are still challenges, particularly with Quebec’s language laws, but we’re making strong progress toward a more seamless Canadian marketplace.

Michael: Access to capital remains a persistent barrier for entrepreneurs. What initiatives is Ontario exploring to help small businesses secure financing?

Minister Tangri: We hear this often. Someone has a great idea but doesn’t know where to start. Our 54 Small Business Enterprise Centres offer free mentoring and up to $5,000 for new ventures. Students can access up to $3,000 through our summer program.

We also fund Futurpreneur with $6 million, supporting entrepreneurs aged 18–39 with mentorship and up to $75,000 in financing through BDC. For tech companies looking to scale globally, our Regional Innovation Centres, now 18 across the province, provide guidance and support. Private sector partners, including angel investors and venture capital groups, also play a key role, especially in life sciences and emerging technologies.

Michael: Workforce shortages continue to affect small businesses. How is Ontario supporting skills development, upskilling, and labour mobility?

Minister Tangri: We’re working closely with colleges and universities to ensure programs reflect today’s needs, especially in areas like artificial intelligence. We’ve accelerated accreditation for Red Seal trades and introduced timelines for regulatory bodies to speed up licensing for internationally trained professionals.

For healthcare, physicians from the U.K., U.S., Australia, New Zealand, and Ireland can now become licensed in Ontario much faster. Our Learn and Stay program pays tuition for nurses and PSWs who study and work in underserved regions. It’s helping fill critical gaps while supporting long-term community growth.

Michael: Digital transformation accelerated during the pandemic, but many small businesses still struggle with advanced technology. How is the government helping them build digital capacity?

Minister Tangri: Small businesses want to focus on what they do best, serving their customers. Learning new technology can feel overwhelming. That’s why we invested $5 million in the Digitalization Competence Center, run through the Ontario Centre of Innovation.

Since 2022, this program has created over 3,000 jobs and increased revenues by $600 million for participating businesses. We also launched the Retail Modernization Project, offering up to $5,000 in matching funds for AI tools, cybersecurity, CRM systems, POS upgrades, and more. These programs help businesses modernize, save time, and reinvest in growth.

Michael: Small business accountants often serve as the first line of advisory support for entrepreneurs. What opportunities do you see for deeper collaboration between government and the accounting profession?

Minister Tangri: It’s critical that small business owners seek professional advice early. Many try to do everything themselves, but bookkeeping and compliance require expertise.

An RPA is often the best first line of support because they understand the realities of small business. We want to encourage entrepreneurs to “let go” of some administrative tasks and rely on professionals who can help them grow. Accountants also play a key role in identifying regulatory burdens and advising government on practical solutions.

Michael: Looking ahead, what is your long-term vision for Ontario’s small business ecosystem, and what role can professional accountants play in shaping that future?

Minister Tangri: Small businesses and entrepreneurs are the backbone of our economy. Premier Ford’s vision is for Ontario to become the strongest, most self-reliant, resilient economy in the G7.

To achieve that, we need strong partnerships with industry and professional associations. You are on the ground; you know what challenges businesses face. One emerging priority is succession planning. Only one in ten businesses has a plan in place.

We launched SuccessionOntario.ca to help owners understand valuation, prepare for transition, and avoid unnecessary closures. We ask accountants and professional bodies like RPA Canada to continue advocating, sharing insights, and bringing forward both challenges and solutions.

Michael: Finally, any closing thoughts for Ontario’s professional accounting community?

Minister Tangri: We value your partnership. You play a vital role in supporting entrepreneurs, improving compliance, and strengthening Ontario’s business environment. We don’t have all the answers. That’s why we rely on your expertise. Together, we can build a more dynamic, inclusive, and resilient economy for everyone.