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Times have been tough in Scarborough.

Changing demographics -- it has one of the highest influxes of new immigrants in all of Canada -- as well as steady crime rates and a general aura of neglect have led to the less-than-complimentary nickname of Scarberia for the east-end Toronto borough that celebrated its bicentennial in 1996. Its chamber of commerce has even started a publicity campaign called Stand Up Scarborough to celebrate the area's long history and build on its successes.

Much of that success rests on the small businesses that continue to be the lifeblood of the economy across Canada, whether in towns, mid-sized cities or neighbourhoods of major urban centres. In fact, 56.2 per cent of Canadian businesses are true mom-and-pop shops with no payroll at all, according to the Canadian Federation of Independent Business. An additional 24.8 per cent have fewer than five employees.

Drive along Kingston Road, the six-lane thoroughfare that runs across the bottom of Scarborough, and the vast majority of what you'll see are small businesses.

This used to be the main road heading east out of Toronto until the 1950s, when Highway 401 came along to steal its thunder. The large number of motels still around hint at the area's former vibrancy, but many of these old-style motor inns are far from their prime and contribute to a dated feel.

Strip plazas are another blast from the past here, although some are being given facelifts. Cliffside Plaza, for instance, just a few blocks away from the imposing 1913 St. Augustine's Seminary overlooking the bluffs along Lake Ontario, has some big-name tenants such as Scotiabank, Blockbuster Video and a No Frills grocery store.

Yet, right next door is a strip plaza so unassuming it doesn't even have a name. The parking lot could use some repairs, and there are at least four vacant shops among the dozen businesses, which include a convenience store and a nail salon, both run by Asian immigrants, Money Mart, Domino's Pizza and Mary Brown's Fried Chicken.

This is a place where gentrification most certainly has not yet arrived, but the unassuming look of the plaza belies the strong professional ethos and sense of community that has kept small businesses operating here, against the odds, for more than five decades.

Frolly's

A rather plain exterior belies the fun to be had at Frolly's, which specializes in costume rentals, theatre makeup, novelties and dance supplies. Owner Holly de Jong prides herself on being the only store in Toronto catering to square dancers; regular clients travel from as far away as Elliot Lake, Ont., to find the perfect crinoline skirt here.

Ms. de Jong bought the business about a decade ago after managing it for 15 years. The no-nonsense woman, whose own hobby is Appalachian step-dancing, says she jumped at the chance to own a store that has operated in Scarborough for more than 30 years. "I like what I sell, and the people I deal with are fun," she says.

Nevertheless, she's finding a lot of customers grumbling about the steady drop in their disposable incomes. "If people want to spend, they spend. They groan about it, but they still spend."

Where her business has really suffered is the competition from big-box stores, especially noticeable at Halloween. "Chapters has costumes now, so does Value Village and Shoppers Drug Mart. There are too many people with their fingers in the same pot," she says with a trace of bitterness.

But she's confident the one-on-one service at Frolly's will continue to set her business apart from the chains. "I know makeup," she say. "They don't."

Trend Automotive Supply

It's Friday evening just before closing and a steady stream of customers is pulling up in front of Trend Automotive Supply to pick up spare parts they might need for a Saturday morning of tinkering under the hood.

Brigitte Schnorrbusch, who was born in Germany, has spent 25 years at the helm of a business that sells parts for all brands of vehicles. Her feisty sense of humour hints at the strength of character it has taken for a grandmotherly type to succeed in what's typically been a man's world. Andy Robb and Troy Bell, who work the counter this night while their boss catches up on bookkeeping, exchange knowing smiles as Ms. Schnorrbusch lets loose with a tirade on how the economy has been treating her.

"The business cycle is slow. Everybody is complaining," she says. "The people we sell to aren't so busy." Ask her about the impact of the GST drop and she just rolls her eyes.

"It was a stupid mistake," she says with a huff. "The only thing it's done is make our paperwork more complicated."

One of the biggest changes for Ms. Schnorrbusch's business has been the huge jump in inventory her shop needs to handle as the auto industry embraces a business model based on impermanent design. "Our inventory has grown five-fold because the parts are changing every year."

Mr. Bell has some harsh comments to add about the arrival of the disposable society. "Cars, like everything else, are built to break," the eloquent 24-year-old says. "Consumers buy a new car every three or four years. But they also don't trust their dealerships, so they come here instead."

Antoine's Jewellery

Antoine Jamjekian's store can go for weeks without a sale. The jeweller's business, located in Cliffside for more than 25 years, has gotten by largely on custom-design orders and repairs from loyal customers who continue to trust the skilled tradesman with their family heirlooms even when they've moved away from the neighbourhood.

"They want to deal with someone they know," the 58-year-old Armenian immigrant says proudly. "Sometimes customers don't even ask for the stub when they drop off repairs." His business has survived three robberies. The last one, an armed attack, was particularly devastating. Because Mr. Jamjekian was alone in the store, his insurance policy didn't cover anything.

"It took our future," his wife, Ani, says sadly. "We lost everything." Ms. Jamjekian, a piano teacher, would like her husband to close up shop.

"But what will I do at my age?' he counters. "Go work for $10 or $15 an hour? And anyway, I have a passion for this. I love to create." Most small jewellery stores are suffering these days, he says.

"I don't know about Birks and Holt Renfrew and other places where money is no object," he says. "But I have a lot of clients on welfare who don't even have eight dollars for a watch battery.

"So I will pay for it myself," he adds, displaying the kind of caring that's made him a much-loved business owner in the area.

Herbal Magic Weight Loss

& Nutrition Centre

Health counsellor Michelle Radway has managed the Herbal Magic outlet here for about three years.

The franchise business, which started in London, Ont., and has spread across North America, has two facets: one-on-one weight-loss consultations that take place in small offices in the back of the store, and the sale of vitamins and nutritional supplements at the front.

Business fluctuates greatly, Ms. Radway has found. "We've seen really slow months. And then months when we've gone up by $35,000." A lot of the changes are seasonal, she says. At New Year's, people make weight-loss resolutions. In the summertime, they want to fit into nice bathing suits.

Despite the ups and downs, Wendy MacGregor, the owner of the franchise, has been able to expand, adding an extra consultation room to the premises.

Ms. Radway says she doesn't believe that the general state of the economy has affected her line of work very much. "Once people have decided that they want to lose weight, they're committed to spending this money," she says. The strip plaza is an ideal location because many clients use Kingston Road as their main commute route to and from downtown Toronto, she says. Advertising in community newspapers and on local radio has helped drum up business, as well.

And there's another aspect of the location that works in their favour, Ms. Radway explains with a grin: "We're right between two fast-food restaurants."

Bo-Peep Family Restaurant

and Fanny's Sports Lounge

In the 1960s and 70s, this restaurant was one of the happening places around town. One of the first licensed establishments along Kingston Road, its regular clientele included hockey players from the Toronto Maple Leafs.

"We were a famous restaurant," says Bill Manos, 42. The Bo-Peep chain, which has had branches all over Toronto, has been in his family for more than 50 years. He and a partner took over the Cliffside location in 1996 after a brief closing when Mr. Manos's father died.

"It's very tough on a day-to-day basis," he says, adding that operating costs on expenses such as hydro and heat have risen 35 per cent.

But the topic that gets Mr. Manos riled up the most is how the Ontario smoking ban was handled, even though he's a non-smoker and runs a business that caters to families rather than the drinking crowd.

He decries legislation that he says was shepherded by such big chains as The Keg and that has resulted in an estimated 40-per-cent drop in earnings for small-time operators. "The marketplace doesn't want the independent guy," he laments.

Mr. Manos has found ways to cope, by branching out into catering, for instance. "We have to keep on working harder to make up the difference," he says, "but we'd also like the city to work along with us, to bring transit in to the neighbourhood, to make it safer."

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