50% of Canadians Thinking of Starting a Business, But Most Business Owners Say Don’t

Morning in Toronto's financial district on April 1, 2020. Cole Burston/Getty Images

Although over half of Canadians are considering starting a business, most current business owners question whether now is a good time to become an entrepreneur, according to recent statistics.

An RBC poll shows 51 percent of Canadians are thinking of launching a business, up five percentage points from 2023, according to a Sept. 18 news release.

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

The results show that Canadians are looking for ways to “gradually transition to entrepreneurship,” Ludlow said.

According to the results, 72 percent of those wanting to start a business are already looking at how to make it happen. Some of their ideas include

• Making money from a passion project or hobby (31 percent)
• Making money outside of a regular job (28 percent)
• Taking on side jobs (19 percent)
• Finding ways to transition from full-time work to freelance (13 percent)
• Developing a business idea independent from a current job (8 percent)

The poll was conducted by Ipsos Canada from June 21 to 25 with more than 2,000 surveys completed online by Canadians aged 18 and older.

Government Help Needed for Small Business

In another poll on small business from the Canadian Federation of Independent Business, only 18 percent of current business owners would advise someone to start a business right now.

The top reasons for advising against entrepreneurship at this time were: difficulty in keeping up with the cost of doing business (90 percent), the current economic situation (76 percent), and the high tax burden (73 percent).

“Small businesses are still facing hardships that are impacting their ability to operate and invest, which in turn impact Canada’s economy and productivity,” CFIB executive vice-president of advocacy Corinne Pohlman said in a Sept. 16 news release.

Pohlman said the government needs to consider the needs of small businesses if it wants to improve the economy.

The survey found that 59 percent of business owners struggle with taxes and 51 percent said they grapple with operational costs.

About three-quarters of small businesses want to see government reduce the tax burden and 77 percent said the government needs to bring down the cost of doing business and rising prices.