Why Supporting Local Small Vendors Is Good for the Canadian Economy Right Now
In my travels doing farmers' markets, I have met so many fantastic vendors and now I make a point of spending my money or trading products with other small businesses because they put as much heart into their wares as I do.
I want to support local, Canadian and small businesses because it beats supporting corporations that don't give two poops about any of us and sell many heartless products.
At a time when Canadian small businesses are facing significant headwinds—from inflation and rising costs to competition from large online retailers—choosing to shop local has never been more important for our economic resilience.
The Numbers Tell the Story
Small businesses form the backbone of Canada’s economy. As of 2023, small businesses (those with fewer than 100 employees) make up 98% of all employer businesses in Canada and employ 10.3 million Canadians—representing 63.8% of the private sector workforce. Together with medium-sized enterprises, they contribute over half (50.8%) of Canada’s GDP.
Yet many are struggling. In 2023, 30.5% of businesses with 1 to 19 employees reported lower revenues compared to the previous year, and nearly one in five small businesses expect sales to decrease in the near future. Over 20% are concerned about cash flow issues, and 49.3% expect inflation to be a major hurdle.
The Local Multiplier Effect
Here’s where your purchasing power makes a real difference: when you buy from a local small business, your money circulates within the community multiple times, creating what economists call the “local multiplier effect.”
For every $100 spent at a local shop, nearly two-thirds stays within the community through wages, taxes, and support for other small businesses. Research shows that buying local has a multiplier effect of 1.4-2.6 throughout the wider local economy. A BC study found that local businesses produce an economic benefit between 1.8 and 4.3 times that of their multinational competitors—an average of 3.1 times. When comparing a local retailer to a purely online retailer, the benefit of the local business jumps to 107 times greater.
In practical terms, if every Canadian spent just an extra $10 a week locally, it could generate $60 billion a year in local commerce for our communities. A 10% shift in shopping from chains to local businesses could create 14,150 jobs and $4.3 billion for B.C.'s economy alone.
Why It Matters Now
When you support a local vendor, you’re not just buying a product—you’re helping to keep 10.3 million Canadians employed, supporting entrepreneurs who are navigating unprecedented challenges, and ensuring that money recirculates in your community to fund local wages, services, and tax revenues that support public infrastructure.
Small businesses are what make Canadian communities unique and vibrant. As they face mounting pressures, our collective choice to shop local is one of the most powerful economic tools we have to build resilient, self-sustaining communities.
Sources & Citations:
- Statistics Canada (2024). “Analysis on small businesses in Canada, second quarter of 2024.” Publication 11-621-M. https://www150.statcan.gc.ca/n1/pub/11-621-m/11-621-m2024007-eng.htm
- Innovation, Science and Economic Development Canada (2024). “Key Small Business Statistics 2024.” https://ised-isde.canada.ca/site/sme-research-statistics/en/key-small-business-statistics/key-small-business-statistics-2024
- Made in CA (2024). “Small Business Statistics in Canada for 2025.” https://madeinca.ca/small-business-statistics-canada/
- Search YVR (2025). “31 Canada Small Business Statistics For 2025: Key Insights, Challenges & Trends.” https://searchyvr.com/learn/small-business-statistics-canada/
- Sustain Ontario (2012). “The Multiplier Effect of Buying Local Food.” https://sustainontario.com/2012/07/04/multiplier-effect/
- Manitoba Inc. “MAX IMPACT: the BUY LOCAL MULTIPLIER.” https://manitoba-inc.ca/max-impact-the-buy-local-multiplier/
- Lake Country Calendar (2025). “Why shopping local makes a difference in the Central Okanagan this holiday season.” https://lakecountrycalendar.com/2025/11/04/why-shopping-local-makes-a-difference-in-the-central-okanagan-this-holiday-season/
- Nearest.com. “Support Local - Canada Local Business Directory.” https://www.nearest.com/supportlocal
- GrabOn (2025). “Local Shopping Statistics (2025): Economic Impact and Trends.” https://grabon.com/blog/local-shopping-statistics/