We have gathered the most crucial entrepreneur statistics to help you stay on track in the world of business in Canada. Let’s begin.
Top 10 Entrepreneur Statistics for 2021
- Almost 99% of companies in Canada belong to the small and medium businesses category.
- One-third of all new companies fail in the first five years.
- The reason why most startups fail is that they run out of cash and/or fail to raise new capital.
- Many entrepreneurs stated they have to deal with financial insecurity.
- Auto repair might be one of the most profitable small businesses in 2022, according to entrepreneur trends.
- Canadian female entrepreneurs who launch businesses earn 58% less than their male counterparts.
- Stephanie Ciccarelli and Shahrzad Rafati are among the top women entrepreneurs in Canada.
- There were 1.23 million employer businesses in the country as of December 2019.
- Despite all the challenges, 90% of Canadian entrepreneurs are professionally satisfied.
- Women entrepreneurs in Canada rank first in terms of involvement with newer businesses.
Most Significant Entrepreneurship Statistics
In the following section, you’ll read about the most vital statistics on entrepreneurship. What’s more, you’ll learn about the latest business trends.
1. There were 1,291,424 employer businesses in Canada in June 2021.
Moreover, the latest statistics reveal that 2,961,476 were non-employer businesses with yearly revenues of over $30,000.
Based on entrepreneurship trends, the pandemic has most certainly affected businesses. Namely, in December 2020, there were 46,809 opening businesses, while in August 2021, the figure stood at 41,795.
2. Almost 99% of companies in Canada belong to the small and medium businesses category.
Because of the country’s economic reliance on small and medium businesses, the government has invested in them to help them recover from the pandemic and plan for future expansion.
3. As of 2017, the business entry rate stood at 12.4%, while the exit rate was 11.5%.
Statistics reveal that business exit and entry rates have plummeted over the last 30 years. Namely, the entry rate decreased from 24.5% in 1983 to 13.1% in 2012.
4. Entrepreneurial statistics reveal that there were 1.23 million employer businesses in the country as of December 2019.
(Government of Canada)
Of them, 1.2 million, or 97.9%, were small businesses. In contrast, 22,905 businesses, or 1.9%, were medium-sized. The remaining 0.2% were large businesses — 2,978, to be exact.
Interestingly, Prince Edward Island is the province with the most businesses per thousand individuals aged 18 and over.
5. One-third of all new companies fail in the first five years, entrepreneurship facts show.
Furthermore, only one in two companies is still open after ten years. Perhaps, that is one of the reasons fewer Canadians have turned to entrepreneurship over the past 20 years. That being said, recent developments indicate a renewed interest among a new generation of Canadian business owners.
6. According to entrepreneur statistics in Canada, 44,700 Canadians started a business in 2018.
The abovementioned number was the highest in a decade! In other words, one out of 430 Canadians started a business that year. Data reveals that Canada’s entrepreneurial resurgence has been driven by newcomers, millennials, baby boomers, and women.
7. Entrepreneur stats from 2019 found that 24% of respondents were interested in starting a business.
A Survey on the Perception of Entrepreneurship in Canada analyzed the answers of 1,006 participants. Of the people who intended to start a business, 17% of 18–34-year-olds said they would do so in the next two years. That said, only 7% of all respondents already ran a business full-time.
8. The reason why most startups fail is that they run out of cash and/or fail to raise new capital.
According to an analysis of 110+ startup failure postmortems, 38% of failed startups ran out of money, 14% did not have the right team, 20% got outcompeted, and 15% had pricing problems. Overall, the entrepreneurship failure rate is relatively high.
Other common reasons for startup failures include regulatory or legal challenges (18%), a flawed business model (19%), and no market need (35%).
9. Auto repair might be one of the most profitable small businesses in 2022, according to entrepreneur trends.
According to NerdWallet, the most profitable small businesses in 2022 will be an auto repair, food trucks, car wash services, electronics repair, and IT support. What is appealing about these is that they are growing rapidly and don’t require much capital to start.
Canadian Entrepreneurs Statistics
Now, let’s discover what a modern Canadian entrepreneur looks like, where their preferences lie, and what is required for one to become a high-skilled employer. Read on to find out.
10. Over 50% of boomers claim they have already started or are thinking about starting a small business before retirement.
Moreover, they also stated that being their own boss was the primary motivation, trends in entrepreneurship show. Simultaneously, business owners in Canada are ageing — around 50% of all entrepreneurs are aged 50–64.
11. Many entrepreneurs stated they have to deal with financial insecurity.
(BDC) (Startup Grind)
Namely, three-quarters of entrepreneurs say they have to deal with tremendous amounts of stress, financial insecurity, and lack of benefits compared to people in corporate jobs.
What’s more, entrepreneurship stats reveal that 49% of surveyed entrepreneurs were dealing with at least one mental health disorder, such as bipolar disorder, ADHD, ADD, anxiety, addiction, or depression.
12. Despite all the challenges, 90% of Canadian entrepreneurs are professionally satisfied.
Entrepreneurs can overcome many challenges thanks to acquired technical and managerial skills. What’s more, higher-skill level entrepreneurs have higher profit, sales, and employment growth than others in their sector.
13. A one-point increase in managerial skills raises the probability of high performance by 3.1%.
Simultaneously, a one-point increase in technical skills raised it by 2.9%. Notably, a one-point increase in managerial skills can boost the probability of an entrepreneur reporting high satisfaction by 10.7%, statistics about entrepreneurship show.
14. Out of 1,000 young Canadians, 3.3 launched a business in 2018.
(BDC) (CIC News)
In comparison, out of 1,000 older Canadians, 1.4 started a business the same year. What’s more, based on the entrepreneur statistics in Canada, 3.6 out of 1,000 newcomers did so in 2018. Notably, the number of newcomer entrepreneurs rose 22% from 205,400 in 2006 to 251,600 in 2018.
Female Entrepreneurship Statistics and Facts
In the following section, you’ll learn a thing or two about female entrepreneurs in Canada and how significant their impact is.
15. Around 28% of all entrepreneurs in 2019 were women, according to entrepreneur demographics.
In comparison, 40 years ago, around 11% of all entrepreneurs in the country were women. The number of female entrepreneurs in Canada rose from 49,000 in 1976 to 241,000 in 2018.
Judging by these entrepreneurship facts and figures, it is forecast that the numbers of new male and female entrepreneurs should reach parity by 2030.
16. The government props up female entrepreneurs via Women Entrepreneurship Strategy (WES), including a more than $6-billion investment.
(Government of Canada)
Not only that, but according to entrepreneurship growth statistics, the Women Entrepreneurship Strategy also intends to increase women-owned businesses’ access to expertise and networks required to thrive in new markets.
Partner programs include Business Women in International Trade, Women Entrepreneur Program, and Business Development Bank of Canada.
17. On average, women business owners have fewer years of ownership or management experience compared with male business owners.
(The Balance Small Business)
On average, women business owners are also younger than their male counterparts. Stats also indicate that women entrepreneurs are much more likely to launch and operate small businesses in the retail sector.
18. Canadian female entrepreneurs who launch businesses earn 58% less than their male counterparts.
According to female entrepreneur statistics, that amounts to a $68,000 average income difference between men and women who started similar businesses.
Nearly half of the women polled said they couldn’t get the external funding needed to scale. Notably, 70% of men claimed to find it easier.
19. Women entrepreneurs in Canada rank first in terms of involvement with newer businesses, interesting entrepreneur facts reveal.
(The Balance Small Business)
They are ahead of Britain, the United States, and other innovation-based economies. Furthermore, Canadian women entrepreneurs rank sixth in terms of involvement with established businesses.
20. Stephanie Ciccarelli and Shahrzad Rafati are among the top women entrepreneurs in Canada.
Ciccarelli is the co-founder of Voices.com, an award-winning online marketplace. Shahrzad Rafati is the founder and CEO of BroadbandTV Corp. A few more entrepreneurs to keep in mind are Tonia Jahshan, Cassandra Nordell, Mandy Rennehan, and Elisabeth Rioux.
Overall, we hope these entrepreneur statistics gave you some food for thought. As the world changes, so should your venture. Take a note of these statistics and trends — they will help you adapt. Thank you for sticking till the end.
What percentage of entrepreneurs are successful?
Fewer than one in two ventures are still open after ten years. Moreover, a third of all new ventures fall within five years.
According to entrepreneur statistics, there is a minor difference in survival rates of service-producing and goods-producing businesses. Over the first two years, both sectors have the same survival rates — 86.8%.
However, 79.6% of businesses in the service-producing sector were still open after the third year, compared to 78.4% of businesses in the goods-producing sector.
Despite a supportive entrepreneurial environment in Canada, the statistics of entrepreneurship reveal that the number of new enterprises is fewer than in previous years. To compare, globally, only 25% of new ventures survive 15 years and over.
(Grant Thornton) (BDC)
Who are the 10 most successful entrepreneurs in the world?
The richest entrepreneurs in 2021 are:
- Jeff Bezos
- Bill Gates
- Warren Buffett
- Bernard Arnault
- Carlos Slim Helu
- Amancio Ortega
- Larry Ellison
- Mark Zuckerberg
- Michael Bloomberg
- Larry Page
Is entrepreneurship on the rise?
According to data from 2020, entrepreneurship was on the rise that year — a 40% spike in new venture applications was observed. As of 2017, there were 582 million entrepreneurs worldwide.
(Forbes) (The Hill)
Who is the richest entrepreneur in 2021?
In 2021, the wealthiest entrepreneur is Jeff Bezos, the founder of Amazon. With a net worth of US$203 billion, Bezos has diversified his interests in many other businesses, including Audible, Alexa, Junglee, and Amazon Web Services.
Why do most entrepreneurs fail?
There are several reasons why many new businesses fall and don’t even make it to the second year. Out of all these reasons, possibly the most common is that entrepreneurs do not have the proper knowledge or resources to execute an idea correctly.
Some of the following may also lead to an eventual pitfall:
- Lack of cash flow
- The mentality of “I have to do it all”
- Lack of marketing and sales strategy
- No big vision
Refer to the abovementioned entrepreneur statistics for more insight into what props the venture’s success.
(Business News Daily)