Forget big cities like Toronto. Small-town startups are the answer to Canada's entrepreneurial growth

Canada is missing the mark when it comes to championing innovation and entrepreneurship in rural communities and if left unaddressed, we could undermine the growth and potential of Canada’s innovation ecosystem at large. Metropolitan cores like Toronto, Vancouver and Montreal have gained global recognition for their technological breakthroughs and entrepreneurial ventures. This has created a deceiving narrative that that only real innovation originates in big cities. But that’s not sustainable; we’re putting too much stress on our major cities, exacerbating issues like housing, congestion and cost of living. As a result, we risk inadvertently sidelining the very towns where entrepreneurship first took root. Think about it. Rural towns with tightly knit communities rallying around their new businesses, supporting customer acquisition, marketing through word-of-mouth and creating a loyal customer base — all the required pillars to build solid business foundations. Plus, they offer prime testing grounds for innovation, providing controlled environments to develop, test and scale solutions before introducing them to larger markets. From simpler regulatory processes, access to local grants and better lines of communication, businesses in rural communities face less red tape than their urban counterparts. Take Innisfil, Ontario, as a perfect example. Located just an hour north of Toronto, the town has achieved what most big cities can only dream of. From allowing its citizens to pay taxes with cryptocurrencies and replacing public transit systems with a community ride share service, the town serves as the perfect case study on rural communities becoming innovation hotbeds. In partnership with Toronto Metropolitan University’s DMZ, the Town of Innisfil launched a startup incubator program in 2020 . DMZ Innisfil provides local brick-and-mortar businesses and startups with programming, mentorship and expedited government purchasing opportunities. The hub has supported more than 52 local entrepreneurs to develop and grow their businesses, raising $18.8 million in growth capital through programming and generating more than $20 million in revenue to date. Innisfil’s success story doesn’t have to stand alone. Countless other rural towns across Canada have the hunger and talent to drive their local economies, spearhead innovations and build successful businesses. Compared with other countries in the G7, Canada’s rural population is the fastest growing . We have a golden opportunity to empower rural communities across Canada to streamline their entrepreneurial and innovation efforts. If Innisfil’s approach was replicated in just 20 similarly sized rural regions across Canada, we could see an additional $400 million in small business revenue. And this growth is exponential, stimulating the local economy, creating new job opportunities, reducing brain drain and attracting external investments. It’s now up to the broader innovation ecosystem to collaborate with rural communities to bridge the support gap by acknowledging and championing the innovation powerhouses that lie beyond our big-city horizons. Key players in the space — incubators, accelerators, investors, governments and post-secondary institutions — must come together to empower rural towns, even if they don’t live there. By designing customized strategies for smaller communities that cater to their strengths, we can redefine our economic landscape, unlock our full entrepreneurial potential and position Canada as a global innovation haven.