More Canadians striking out on their own
As we’ve reported recently, Zoomers are at the helm of many new businesses, choosing to be their own boss later in life. It comes as little surprise then that a new report released by CIBC shows that the next decade will see a huge upswing in this area, with over half a million entrepreneurs establishing their own business this year alone.
The study showed that British Columbia is currently leading in this trend, with 3.7 per cent of their working population involved in a startup. Alberta came in second at 3.1 per cent, “largely due to the positive spinoffs from the energy sector and the business service sector,” the report said. Saskatchewan followed at 2.9 per cent.
Benjamin Tal, deputy chief economist at CIBC, explained why startups are seeing such an upswing:
“The gradual shift to a strong culture of individualism and self-betterment; 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 are among those forces that are likely to support a net creation of 150,000 new businesses in Canada in the coming 10 years,” he wrote.
The report indicated that most people are choosing to be self-employed, rather than being forced into it — with only 20 per cent of new owners saying they were doing so because they could not find other employment.
Zoomers taking the lead
The 50 and older demographic is the fastest growing segment of the population starting their own business, accounting for 30 per cent of all Canadian startups, the report stated.
“Affordability and availability of technology enables older Canadians to provide services from home. They are also able to use their well-developed skills and take advantage of their wide business networks and connections more effectively,” Tal said.
It also showed that 30 per cent hold a university degree, and while more men start a new business at 70 per cent, it is women who are more successful in the long term.Though half of all new startups will fail within five years, demographic trends show Canada can support around 150,000 new businesses over the next decade.
The fastest growing services? Education – which is up by 65 per cent since 2007 – and healthcare.
The report also noted that Canada is not alone in this trend, with similar statistics being seen in the United States and across Europe.
The CIBC study comes on the heels of recent news that many boomers will stay in debt during retirement, suggesting that most Canadians do not plan to give up their current lifestyle in order to retire.
Sources: CIBC, Calgary Herald, Canadian Business, Toronto Sun, Newswire