It is not a mystery that Entrepreneurs play a leading role in the economy of countries. From providing job opportunities in the short or long term to introducing innovative services and products. Entrepreneurship drives the economy and increases competition between companies, encouraging them to be more productive.
Specifically in Canada, entrepreneurs have become an essential part of the development of the economy. In this blog, we will show some interesting statistics that support the above idea.
A few interesting facts to take a look at:
Futurpreneur Canada is the leading source for young small businesses in Canada. It is a nonprofit organization that supports business owners ages 18-39 by providing them with money, mentorship, and general support.
In 2019, the Government of Canada created the Black Entrepreneurship Program, about $53 million were invested in setting up a new National Ecosystem Fund to access funding for training, financial services, and mentorship.
Top 8 eye-catching statistics of entrepreneurship in Canada:
There are 3.5 million entrepreneurs in Canada.
According to the 2018 Canadian Entrepreneurship Census Report, Canada is one of the most entrepreneurial countries in the world. Across the country, there are 3.5 million entrepreneurs in a wide range of profiles.
2. Women-owned businesses are mainly in the service sector.
A study carried out in 2019 reveals that women are more likely to be in the services sector, with a representation of 63.1% in education and health and 52.8% in accommodation and food services, 44.1% in information, recreation, and culture, 38.5% in insurance, real estate and finance; and 38.1% in other professional services. It is important to highlight that this sector has been the hardest hit by the pandemic.
3. Women entrepreneurs tend to have fewer employees.
According to The State of Women’s Entrepreneurship in Canada, 92.7% of Canadian women-owned businesses are micro-enterprises with no more than 20 employees. Between 2005 and 2013, the relative growth of women-owned businesses was stronger than that of men-owned businesses and was particularly notable among women-owned businesses with 5 to 19 employees.
4. Around 42% of Millennials in Canada were interested in owning a business.
A survey conducted a few years ago showed that at least 25% of people surveyed were interested in starting or running a business in the future, and one in 10 expected to do so in the next few years. Millennials represented 42% of those interested in entrepreneurship, being the majority entrepreneurial age group.
5. Up to 42% of new businesses in Canada fail because there is no need for the products and services they offer.
There are additional reasons why a business can fail. A survey conducted by CBInsights exposed the following reasons:
14% ignored customers
14% poor marketing efforts
17% lacked a business model
18% pricing and costs issues
23% did not have the right team running the business
29% run out of money
42% there was no market need for their services or products
6. Due to COVID-19, there was a significant shut down of companies in Canada in 2020, but in 2021 there was a change in the economic landscape.
According to Fundsquare, in June 2021, active businesses dropped from 907,124 to 901,794 in October. However, the general behavior is not completely negative when it is observed that business closures fell from 87,998 in April 2020 to 39,216 in October 2021.
Business closure was the result of the pandemic for many businesses in Canada, and this was increasingly significant in the first year. Although, the negative effect the pandemic has had on Canadian businesses is still visible.
7. Around 40% of small businesses in Canada intend to invest in technology in 2021.
After the pandemic hit the global economy, the digital technology sector has enjoyed a boost. Many companies were saved by implementing remote work, e-learning, and e-commerce strategies. As a result, different services in the digital industry have found greater demand.
8. Approximately 72.4% of Canadians consider entrepreneurship a desirable career choice.
Although success does not come easy, a high percentage of Canadians are drawn to the entrepreneurial path. Around 10% of Canadians plan to open their business in the next few years, while another 14% want to but are not quite sure yet.
To sum up, Canadian entrepreneurs are influenced by a healthy ecosystem, they can find support programs provided by the government or by non-profit organizations. Women are playing a significant role in business growth, as the percentage of small businesses owned by women has increased in recent years. Although the pandemic has affected Canada's economy and therefore many businesses have been severely damaged, the long-term outlook for the economy looks quite good.
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