Canadian Entrepreneurship on the Rise

Canadian Press. “Over-50 crows drives up business startups.” Sept. 26, 2012, Hamilton Spectator

According to a new report from CIBC authored by economist Benjamin Tal more than half a million Canadians said they had begun their own business over the past two years, this accounts for 15% of Canada’s labour force, a record number.  The paper reports that unlike the early 1990s and 2008 when recession and layoffs drove people to self employment this increase is a product of people voluntary leaving their jobs for entrepreneurship.

The paper suggests that half of these startups will fail within five years.  These new entrepreneurs are males accounting for almost 70% of all new startups.  Although the majority of startups are male, female lead startups have shown to stay in business longer on average.    

Benjamin Tal reports that several factors are driving this increase in self employment.  He reports these being.

-          Being over 50 (this age group represents 30% of all new start ups)

-          Technology such as the internet make the process easier

-          Outsourcing of corporations to smaller firms

-          Influx of immigrants

Tal reports that older Canadians are more likely to start their own firm because…

-          Work experience

-          Useful contacts

-          Financial means

The report finds that regardless of age and gender the new businesses in the past two years are generally more educated than the average population and are also more educated than previous entrepreneurs.

Question: As a small business owner are you finding success in todays market place  globally/domestically or both?

Link: http://www.thespec.com/news/business/article/806015--more-canadians-abandoning-traditional-work-report