Posthaste: More Canadians consider starting their own business

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More than half of Canadians polled in a Royal Bank of Canada survey are considering forging their own path by starting a business in 2024.

The 51 per cent result marks a five percentage point increase from last year and reverses two years of declining sentiment surrounding entrepreneurship, the bank found.

“Historically, we’ve observed strong interest across Canada in starting and owning businesses, and it’s promising to see that a majority of Canadians in 2024 are aspiring entrepreneurs,” Don Ludlow, vice president of small business, partnerships and strategy at RBC, said in a news release.

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“As our economy evolves, we are seeing a growing number of Canadians seriously considering entrepreneurship as they recognize there are more diverse pathways than before to make the jump.”

The survey found 72 per cent of aspiring entrepreneurs are exploring different ways to transition into full-time entrepreneurship, including how to turn a profit from a hobby (31 per cent), taking on a side gig (19 per cent), and testing a business idea (eight per cent).

“Our survey shows that many are eyeing opportunities to gradually transition to entrepreneurship, and they need continued support to turn their ideas into reality and to build the next generation of businesses,” Ludlow added.

A 2023 poll from the Business Development Bank of Canada (BDBC), found Canada has about 100,000 fewer entrepreneurs than it did 20 years ago, even as the population surges past 40 million.

The BDBC report points to wages, an ageing population, and how hard it can be to succeed for the  slowdown in small businesses.

“This situation shows the gap between the intention to start a business and entrepreneurial success,” Pierre Cléroux, vice-president of research and chief economist at BDBC, said in the report.

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“To close this gap, it is important for entrepreneurs to acquire essential skills to launch and grow their businesses, especially in an increasingly complex business environment.”

Despite the challenges of getting started, more Canadians are considering entrepreneurship as a means of finding purpose in their work.

The RBC report found 93 per cent of aspiring entrepreneurs said finding meaning in their work is their primary motivation for starting a business, while 87 per cent of respondents are looking to make more money and 46 per cent are hoping for more work flexibility.

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Canada’s inflation rate dipped down to two per cent in August, marking the lowest inflation rate since August 2021 and reaching the Bank of Canada’s target rate.

The slowdown is largely due to a 5.1 per cent drop in gasoline prices year-over-year, while mortgage interest costs climbed 18.8 per cent over the same time frame.

The dip further increases the odds Canadians might see a 50-basis-point interest rate cut in October.

Read more. 

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• The Bank of Canada releases its summary of deliberations for its interest rate cut earlier this month at 1:30 p.m.
• United States Federal Reserve interest rate decision at 2 p.m. ET, followed by press conference with chair Jerome Powell
• Today’s Data: U.S. housing starts for August, Canadian construction investment for July.
• Earnings: General Mills Inc.

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Today’s Posthaste was written by Ben Cousins, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

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