With rising operational costs, labour shortages and an unpredictable trade environment, business owners across Eastern Ontario are seeking clear policy commitments as the country heads into a federal election.
Small businesses make up 98 per cent of all enterprises in Ontario, employing around three million people, according to the province. In Eastern Ontario, rural communities rely heavily on smaller, independent businesses.
Recent data from the Ontario Chamber of Commerce suggest that more than 60 per cent of small businesses in the province are still struggling with debt accumulated during the pandemic, while nearly half report difficulties attracting skilled workers.
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“We need strong policies that help rural economic development,” said Eric Collard, executive director of the Eastern Ontario Agri-Food Network, which represents producers and food-related businesses in the region. “We don’t have the huge economic drivers that southwestern Ontario has. Manufacturing is not as prominent here. We need a government that recognizes that and provides support accordingly.”
Collard sees an opportunity for the federal government to take a more active role in fostering rural business incubators, particularly in the food and agriculture sectors.
“We represent mostly small producers. They need grants to launch new products, develop processing capacity and create new businesses. There’s a real gap when it comes to business incubators in rural areas,” he said. “In Prescott-Russell and Stormont, Dundas and Glengarry, we have very little support for that kind of thing.”
Scaling up and expanding markets
Expanding operations remains a challenge, he added.
“It’s difficult to grow when you’re operating in an area that doesn’t have the same processing infrastructure as southern Ontario,” Collard explained. “If you’re a small farmer looking to get your product into stores beyond your immediate region, you need access to food hubs, distribution networks and processing facilities. Those just don’t exist at the scale we need them to.”
Although discussions around food security and supporting local businesses have gained traction, Collard argues that, without concrete government action, momentum will be lost. With ongoing tariff threats disrupting international supply chains, he wants to see the next government take stronger action on the “buy local” movement.
“What we haven’t seen is a real shift in government support to back that up. We need funding to help producers market their products, access logistics services and connect directly with customers who want to buy local,” he said.
Trade barriers and economic uncertainty
One of the most pressing concerns among Eastern Ontario businesses is the impact of trade barriers, both interprovincial and international. The threat of U.S. tariffs on Canadian exports has heightened tensions, with many business owners expressing frustration over the lack of government intervention to mitigate potential fallout.
Trade within Canada remains another hurdle, particularly for businesses near the Ontario-Quebec border.
“Francophone business owners suffer three times in a trade war,” said Pascale de Montigny Gauthier, director of the Regroupement des gens d’affaires de la Capitale nationale (RGA). “First, when they order goods from the U.S., then when they try to sell to American clients and, finally, they face language barriers within Canada itself.”
Many business leaders in the region are calling on the federal government to eliminate interprovincial trade barriers, a long-standing issue that makes it difficult for local companies to expand into Quebec and beyond.
“We should be reinforcing links with Quebec’s Chamber of Commerce and the Ottawa Board of Trade,” de Montigny Gauthier said. “Right now, it feels like we’re still working in silos instead of as a unified economy.”
In Kingston, Peng-Sang Cau, founder and strategic adviser with Nuformex, hopes that a new federal government will help Canadian companies innovate and commercialize faster.
“I want to hear what they are doing to break down interprovincial barriers in response to tariffs and to support Canadian companies who want to export beyond the U.S. We have a misguided view that exporting to other countries beside the U.S. is difficult — I disagree. Canadian innovators with unique services must look to places like Europe, which are more innovative, strategic and exercise more long-term thinking. They are faster to adapt disruptive technologies.”
Patrick Egbunonu, president and chief AI officer with Informanos Analytics and AI in Kingston, said the country’s appetite for risk-taking is important.
“Eighty per cent of our exports have historically been to the U.S. It would be great to hear more about diversification from an export perspective. We need the ability to engage other partners outside of the U.S. — such as Europe, Africa and some countries in Asia — to reduce our dependency on the U.S. Eighty per cent is very risky.”
Infrastructure and regional investment
Infrastructure remains another key concern. The Eastern Ontario Wardens’ Caucus (EOWC), which represents 103 municipalities from Peterborough to Hawkesbury, has identified a $6-billion infrastructure deficit that is hindering economic growth. A lack of investment in regional transportation networks and broadband access has stifled businesses, particularly those in rural communities that depend on reliable supply chains and digital connectivity.
“Improving transportation reliability, especially rail connections to the Montreal and Vancouver ports, should be a priority,” de Montigny Gauthier added. “We’re asking the federal government to invest in infrastructure that supports trade and economic expansion.”
The Ontario Chamber of Commerce has also flagged regional airports as key to economic development, citing their role in trade and business growth. Many businesses in Eastern Ontario, particularly in agriculture and manufacturing, rely on efficient transportation networks to remain competitive.
Tourism: A critical economic driver
Tourism remains a key sector for Eastern Ontario and its continued growth depends on sustained government support. Nicole Whiting, executive director of the Ontario Highlands Tourism Organization, emphasized how federal investments in tourism infrastructure have been critical for businesses in the region.
“We have had a great experience with the current government in terms of their support for the tourism sector and we’d like to see that continue,” Whiting said. “For Eastern Ontario, we’ve been able to work with FedDev Ontario on projects that directly helped businesses survive through the pandemic. That kind of investment meant the difference between staying open and shutting down.”
Whiting points to programs like the Tourism Growth Program, which helped expand motorcycle routes and develop Canada’s largest rail trail loop to attract cycling tourists.
“These projects wouldn’t be possible without federal support,” she said. “Tourism isn’t just about visitors — it’s tied to economic development, infrastructure and job creation. When you invest in tourism, you’re also investing in communities.”
In Kingston, Eric Ferguson, general manager of Kingston Destination Group, said tourism is still recovering. “Here in Kingston we saw strong 2024 passenger numbers but they are still not back to pre-COVID numbers. Maintaining a strong relationship with our American neighbours will be an important election issue and the outcome will affect border cities like ours.”
Also in Kingston, the federally owned LaSalle Causeway is a concern. The previous bascule bridge was damaged and then demolished last year. The temporary lift bridge is not able to let large vessels through nearly as often.
“There’s talk of taking the bridge out every Saturday, our busiest retail day during our busiest season downtown,” said Christine Ray-Bratt, owner of Chris James Kingston. “If we lose a major artery like we did last summer, many will struggle. Tourists and east-end customers did not want to endure the added drive.
“Fortunately, businesses are surviving so far and we’re not seeing alarming vacancy rates. We continue to see business confidence and people shopping.”
Women entrepreneurs and small business support
For women entrepreneurs in rural areas, accessing capital remains a major challenge. Doreen Ashton Wagner, founder of Business Sisters, said financial institutions still perceive women-owned businesses as riskier investments.
“Banks still tend to see women-owned businesses as riskier, which means they’re denied loans more often or offered worse terms than their male counterparts,” she said.
Even when funding is available, bureaucratic roadblocks prevent many small business owners from taking full advantage of government programs.
“A lot of grants and loans require extensive paperwork, which is a huge burden when you’re a sole proprietor or running a small team,” she explained. “We need simplified funding processes that actually work for small businesses.”
Networking and mentorship programs, Ashton Wagner believes, could be key to levelling the playing field.
“One of the most powerful things we can do is connect women business owners with each other,” she said. “Government can support this by funding mentorship programs and local business networks that provide guidance, funding advice and growth strategies.”
Labour shortages and workforce development
The need for skilled workers remains a significant challenge in the region. Martha Woods, executive director of the Eastern Ontario Training Board, highlighted health care and skilled trades as industries facing severe shortages.
“We’re seeing major gaps in personal support workers (PSWs), early childhood educators and across the trades,” Woods said. “Programs like the Skills Development Fund have been helpful, but we need more targeted funding to ensure young people see trades as a viable career path.”
Overall, business leaders in Eastern Ontario are calling for a government that recognizes the region’s unique needs, with targeted investments in infrastructure, workforce development and trade policy as top priorities.
“We need leadership that understands rural economies,” said Collard. “We need policies that are flexible, not one-size-fits-all.”
-With files from Phil Gaudreau
