Ontario Expands Digital Competence Centre with $5 Million Investment to Support Small Businesses

Ontario Digital Competence Centre expansion aims to help businesses modernize and grow

MARKHAM — The Ontario government is investing an additional $5 million into the province’s Digital Competence Centre (DCC) to help small and medium-sized businesses adopt digital technologies, improve productivity and remain competitive in a changing economy.

Announced May 20 by the Ministry of Economic Development, Job Creation and Trade, the expanded funding will support nearly 450 additional businesses across Ontario through programs focused on digital modernization, automation and technology adoption.

“Our government is making targeted investments to help small businesses succeed in a rapidly evolving digital economy,” said Associate Minister of Small Business Nina Tangri.

Support for digital modernization and AI adoption

The provincewide initiative is delivered in partnership with the Ontario Centre of Innovation (OCI). Through the DCC, businesses can access advisory services, grants and modernization planning support aimed at improving operational efficiency and long-term growth.

Programs available through the DCC include:

• Digital Modernization and Adoption Plan (DMAP) grants of up to $15,000 for technology planning and modernization strategies
• Technology Demonstration Program grants of up to $50,000 to help businesses purchase and install new technologies
• Retail Modernization Project Grants of up to $5,000 for eligible retailers adopting digital tools such as:
  • Point-of-sale systems
  • Online payment systems
  • Inventory management software
  • Cybersecurity solutions
  • Artificial intelligence tools

Economic impact across Ontario

Since launching in 2022, the Digital Competence Centre has issued more than 800 grants to Ontario businesses. According to the province, participating companies are expected to generate up to $600 million in increased sales revenue while supporting approximately 3,000 new and existing jobs.

The government says businesses involved in the program also reported:

• Average cost savings of 23 per cent
• An average of 192 labour hours saved per month through improved efficiency and automation

Dr. Claudia Krywiak, President and CEO of OCI, said the initiative is helping Ontario companies turn digital adoption into measurable business growth.

“Through investments in modernization, automation, AI adoption, and digital transformation, Ontario companies are improving productivity, increasing revenues, creating jobs and strengthening their long-term competitiveness,” Krywiak said.

Part of broader economic strategy

The new funding builds on the province’s previous $20 million investment in the Digital Competence Centre and forms part of Ontario’s broader economic competitiveness strategy outlined in the 2026 Ontario Budget.

The budget also included plans to reduce the small business corporate income tax rate from 3.2 per cent to 2.2 per cent beginning July 1, 2026. The province estimates the tax cut will support more than 375,000 small businesses and deliver $1.1 billion in tax relief over three years.

Logan Kanapathi, MPP for Markham–Thornhill, said the investment will help businesses adapt to increasing digital demands while strengthening local economic growth.

The province says the expanded DCC program is intended to help Ontario businesses remain competitive globally while encouraging innovation, job creation and long-term economic resilience.

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