More than half a million Canadian entrepreneurs are in the process of establishing their own business this year, according to a CIBC report.
“Irreversible structural forces suggest that the next decade might see the strongest start-up activity in the Canadian economy on record,” says Benjamin Tal, deputy chief economist at CIBC. “The gradual shift to a strong culture of individualism and self-betterment are among those forces that are likely to support a net creation of 150,000 new businesses in Canada in the coming ten years.”
Other factors that fuel this trend include “the role of technology in driving the transition from boardrooms to basements, the more global and inter-connected markets that require greater specialization, flexibility and speed, as well as small business friendly demographic trends.”
The report finds following trends among today’s new business owners.
- Being self-employed is a choice with only 20% of new owners doing so because they couldn’t find a job;
- The 50 and over age group is the fastest growing segment of new business owners accounting for nearly 30% of start-ups;
- The self-employed are more educated – a third have a university degree;
- 70% of new businesses are started by men but women tend to be more successful;
- Educational services (up almost 65% since 2007) and health care are (up almost 20%) are growing fastest:
- B.C. leads the country with start-ups representing 3.9% of the employed population.