Community Wealth Building: Leveraging Your Purchasing and Procurement for Inclusive Local Economic Development 

Governments, public institutions and organizations can develop policies and implement measures that prioritize local business and diverse suppliers in procurement processes. By adopting local and social procurement strategies we can create good jobs close to home while stimulating local economic activity and build community wealth.

Part of your strategy should include: 

• Adding Staff Capacity: Allocating additional staff resources and capacity within your organization to develop and implement local procurement and supply chain diversity strategies. In the most recent 2025 budget, the City of Toronto has included funding for an additional staff to support local procurement, creating more opportunities for local businesses to access City purchasing opportunities. 
• Review contract sizes for purchasing: Breaking down contracts into smaller, more manageable sizes allows local small and medium-sized businesses, co-operatives and social enterprises to access more contract opportunities
• Social value criteria: Embed social value criteria in contract evaluation awarding additional points to bidders who demonstrate a commitment to fair wages, local workforce development, supply chain diversity and sustainability 
• Community engagement and outreach: Develop proactive strategies for community engagement and outreach including participation in local trade shows, fairs and events to share and disseminate information on purchasing needs and procurement opportunities 
• Removing barriers and systems navigation: Engage with local small and medium sized businesses, co-operatives and social enterprises to identify and remove barriers to participation. Develop tools, resources and programs that support small and medium-sized businesses, co-operatives and social enterprises in navigating procurement processes and develop support services to help them prepare bids.

The Impact of Social Procurement Strategies 

Many governments, public institutions, businesses and even smaller nonprofit organizations have adopted similar procurement approaches and strategies.

Since 2017, the City of Toronto has implemented a Social Procurement Policy whose goal is intended to fulfill social, economic and workforce development outcomes contributing to positive benefits to our local economy. Between 2017-2023, the City awarded almost $103 million of contracts to certified Indigenous, Black and diverse suppliers, many of whom operate in our local communities and contribute to meaningful local jobs. Examples of organizations and businesses who have developed similar strategies include: 

• Toronto Transit Commission (TTC) 
• George Brown College 
• York University 
• DREAM Unlimited
• Parkdale Neighbourhood Land Trust 
• Evergreen Brickworks 
• Waterfront Toronto 
• Daniels CorporatioN