The Ontario government is investing $7.5 million to help small and medium-sized businesses modernize through the adoption of digital technologies, with a particular focus on the retail sector.
The funding, announced Wednesday, is part of a broader effort to improve productivity and competitiveness in key industries by encouraging businesses to integrate tools such as artificial intelligence, digital marketing platforms, and customer relationship management systems into their operations.
“Small businesses are the backbone of Ontario’s economy,” said Nina Tangri, Associate Minister of Small Business.
“Our government is helping more businesses embrace new technologies that will improve their operations and ensure they stay competitive in today’s digital economy”, she added.
The lion’s share of the investment—$5 million—will be directed to the Digital Modernization and Adoption Plan (DMAP), a program administered by the Ontario Centre of Innovation (OCI).
Under DMAP, eligible companies can access up to $15,000 in matching funds to work with consultants on developing tailored digital strategies.
Firms that complete a DMAP assessment may also apply for up to $100,000 in additional funding through the Technology Demonstration Program, which supports implementation of new systems and technologies.
The remaining $2.5 million will support a new Retail Modernization Project Grant, aimed at small brick-and-mortar businesses. Grants of up to $5,000, to be matched by recipients, will help retailers upgrade systems such as online payment infrastructure, inventory software, and cybersecurity solutions.
The move comes amid growing concerns that many small businesses—particularly in retail—have fallen behind in digital adoption, a gap that was thrown into stark relief during the pandemic.
Ashley Lepre, owner of Finders Keepers, a Brantford-based retail shop, said the grant will help her invest in new customer relationship management software.
“This support is crucial for small businesses like ours,” she said. “It gives us the opportunity to grow and better serve our community.”
According to the province, the DCC has supported 294 projects to date, including 249 under DMAP and 45 Technology Demonstration initiatives.
The program has also built a roster of more than 100 digital adoption consultants, while expanding the Ontario Digital Technology Vendors List to more than 140 local firms.
“This is about giving small businesses the tools to grow,” said Claudia Krywiak, president and CEO of the Ontario Centre of Innovation. “We’re seeing how digital tools can help streamline operations and bring Ontario-made technologies to market faster.”
To qualify for funding, businesses must be Ontario-based and for-profit. The DMAP and Technology Demonstration streams are open to firms with up to 499 employees, while the retail stream targets businesses with 1 to 50 staff, a physical storefront, at least one year in operation, and a minimum $100,000 in annual revenue.
The province has positioned the investment as part of its broader strategy to strengthen economic resilience and reinforce Ontario’s position in the G7. But for many small businesses on the ground, the focus remains on staying viable in a changing market.
“This is a step in the right direction,” said MPP Will Bouma (Brantford–Brant). “Supporting the digital transformation of businesses in our community will help protect jobs and stimulate local economic growth.”
Applications for the various grants are now open. Details are available through the Ontario Centre of Innovation.
