Research & Economic Analysis

Navigating Opportunities and Obstacles

Written by Marvin Cruz | 17 déc. 2025 13:45:34

For today’s small businesses, having a digital footprint is an important part of connecting with customers, promoting products, and staying competitive. Yet, while many entrepreneurs have taken steps towards the digital space, the path forward is not without barriers. Drawing responses from more than 2,400 independent business owners across Canada, our Your Voice survey launched in September 2025 sheds light on how small firms are using digital tools, where they are finding value, and why some remain hesitant to go further.

How small businesses are going digital

The survey shows that small businesses are overwhelmingly online: nine in ten report using at least one digital channel (Figure 1). The majority have a company website (78%), and many actively use Facebook (59%), Google Business Profile/Maps (52%), and Instagram (41%) to connect with customers. These platforms function as the engine behind small business’ digital presence, offering visibility and familiarity. At the same time, newer or more niche platforms—TikTok, X (formerly Twitter), and online marketplaces—are lightly used, with fewer than one in ten businesses adopting them.

Figure 1: Digital channels most used by small businesses

Question: Which of the following digital channels does your business actively use (i.e., maintain or update as part of operations)? (Select all that apply)
Source: CFIB, Your Voice – September 2025 survey, September 11 - 25, 2025, final results, n=2,478. 

Usage patterns of digital channels

Usage patterns differ by business size, tenure, and sector.

By size, website use is widespread and rises with headcount, from 70% among micro firms (0–4 employees), to near universal adoption (91%) among those with 50 or more staff. Facebook and Google Maps stand out as steady favourites across all business sizes. By contrast, Instagram and LinkedIn see greater uptake among larger firms, reflecting a shift from basic “visibility tools” that help businesses get found online—to broader brand-building channels as businesses grow. This suggests smaller businesses may lack the time and economic resources to maintain multiple digital channels.

By tenure, website use is steady, but younger firms (2-4 years) lean more on Facebook (72%), Google Business Profile/Maps (66%), and Instagram (51%), compared to 55%, 48%, and 36% respectively among firms 11+ years in business.

Across sectors, websites, Facebook, and Google Maps are widely used, but the emphasis shifts depending on the audience. Personal services and Consumer-facing industries like retail, hospitality, arts, and social services put greater weight on Facebook, Instagram, and Google Maps to capture visibility and local traffic. Business-to-business and professional sectors such as manufacturing and professional services stand out for their stronger reliance on LinkedIn to establish credibility and build networks. Agriculture stands out as the least digitally engaged overall, with many firms absent from online channels altogether.

This selective approach suggests that while small firms recognize the importance of being online, they tend to focus their energy where it feels most effective—often choosing platforms that match their customer base. For example, several survey comments highlighted using Facebook because it aligns with their target demographic.

Why small businesses use digital tools

When it comes to how these tools are used, the purpose is clear: for many businesses digital channels are primarily about building visibility and maintaining customer relationships rather than a full-fledged business platform. Results show that 84% use digital channels to promote their business, while 59% rely on them to communicate with customers through updates and direct engagement (Figure 2). Far fewer leverage digital tools for e-commerce, or to gather market intelligence and track competitors.

Figure 2: Top reasons small businesses use digital channels

Question: What are the reasons for using these digital channels? (Select all that apply)
Source: CFIB, Your Voice – September 2025 survey, September 11 - 25, 2025, final results, n=2,478.

This tendency to use digital tools for promotion rather than direct sales is clear when we examine how business websites are used. Of the nine in ten businesses that maintain a website, only 33% of them use their site for direct sales (Figure 3). Among those that do, Shopify and WordPress are the most common platforms used for website sales. Sectors most likely to use their website as a sales channel include arts & recreation (63%), retail (52%) and hospitality (49%).

For most businesses, however, their website functions primarily as a digital storefront for information rather than a true sales channel. For customers increasingly accustomed to online shopping, this gap could represent both a missed opportunity and a sign of the challenges small firms face in adopting e-commerce tools.

Figure 3: Platforms small businesses use for website sales

Question: Which platform do you primarily use for your website sales (if any)? (Select one)
Source: CFIB, Your Voice – September 2025 survey, September 11 - 25, 2025, final results, n=2,478. 

What works best?

While most businesses use digital tools, not all tools deliver equal value. So, which channels do business owners find most effective? Business websites emerged as the clear winner with other platforms mainly providing support (Figure 4). Nearly half named it their most useful tool, far outpacing Facebook and Google Maps, which are second and third respectively. Instagram, LinkedIn, and TikTok trailed well behind.  

Even in an era of fast-moving platforms, the website remains the digital anchor point: a place where businesses control the content, branding, and customer experience. Beyond visibility, it also signals legitimacy—positioning the business as established and trustworthy in the eyes of customers. 

“Our website is what we own, the rest are just info channels and brand builders.” 

– Enterprises & admin. mgmt. business in Ontario  

Figure 4: Most useful digital channel

Question: Of the channels you use, which one is most useful to your business? (Select one)
Source: CFIB, Your Voice – September 2025 survey, September 11 - 25, 2025, final results, n=2,478. 

A closer look at business tenure, however, indicates that these topline results tell only part of the story. While websites remain the most useful digital tool regardless of the age of the business, younger firms lean less heavily on them. Among those 2–4 years in business, only about a third cite their website as most effective, with Facebook and Google Business Profile/Maps playing a much stronger role. In contrast, among firms with more than 11 years in business, over half name their website as their most useful channel, with other platforms playing a smaller part. 

This trend suggests that while newer firms often set up a website quickly, it takes time and experience before it becomes a central driver of value. It may also indicate that websites have become less essential for newer businesses in today’s digital landscape. Alternatives like Facebook and Google Business Profiles often require less resources and fewer technical skills to set up and maintain, making them attractive to younger businesses. 

Challenges of going digital

While digital adoption is widespread, both users and non-users point to significant obstacles. Among the one in ten businesses that remain offline, the top reasons were that digital tools simply weren’t relevant to their customers or business model (55%), or that there was no real need (38%) (Figure 5). Others mentioned difficulties setting up technology, lack of comfort using digital tools, or concerns about cost. For these firms, the benefits of digital adoption do not outweigh the cost of investing in digital tools.   

These findings indicate that the importance of having a digital presence is not universal, nor should it be assumed to be the right fit for every business. For some businesses, traditional personal, local, or specialized interactions are more aligned with their business reality. 

Figure 5: Top reasons businesses don't use digital channels

Question: Why does your business not use digital channels? (Select all that apply)
Source: CFIB, Your Voice – September 2025 survey, September 11 - 25, 2025, final results, n=2,478.

Among those already engaged, the top challenge comes down to capacity, with two-thirds (66%) of business owners saying the lack of time is their greatest obstacleBeyond time pressures, many also pointed to costs, the constant need to keep up with changing trends, or their own limited technical skills. Concerns about cybersecurity, content creation, and knowing which tools to prioritize also weighed heavily. (Figure 6)

Figure 6: Key challenges businesses face when using or adopting tools

Question: What challenges, if any, does your business face when using or adopting digital tools (e.g., website, social media, online payments)? (Select all that apply)
Source: CFIB, Your Voice – September 2025 survey, September 11 - 25, 2025, final results, n=2,478. 

The results show that digital adoption is not simply a matter of “yes or no.” Most small businesses are active online, but the depth and effectiveness of that presence may vary depending on capacity, confidence, and relevance to their customers. For some, the challenge is getting started. For others, it is finding the resources to keep pace in a fast-changing digital environment. 

Conclusion and Recommendations

Taken together, these findings reveal a nuanced picture. Small businesses are digitally engaged and willing to use the tools that help promote their products and connect with customers. But deeper digital integration, such as e-commerce, data-driven insights, or experimentation with emerging platforms remains uneven, slowed by practical realities of time, cost, and expertise. 

To move forward, small firms need support that matches their realities: 

  • Provide tax relief (e.g., reductions in corporate and payroll taxes) to give SMEs the financial space to invest in technology and training. 
  • Offer accessible guidance to help SMEs understand how digital technologies can support their business goals—through simplified resources, success stories, and sector-specific examples.

  •  Encourage digital platforms and tool providers to offer accessible guidance, insights, and low-cost solutions tailored for small businesses. Where fees apply, provide affordable small-business pricing to reduce barriers to adoption. 

By addressing the practical barriers they face, Canada can help ensure that the digital economy works for even the smallest players. 

 This blog post was made possible with support from Meta. 

[i] CFIB, Your Voice Survey, September 11 – 25, 2025, n=2,478.