As of June of this year, more than half a million Canadians were in the process of starting their own business, says a new report from CIBC World Markets Inc.
Guess who’s driving this surge?
The fastest growing segment — by far – is the 50-and-over group, which accounts for close to 30% of the total start-ups. That’s more than double the rate seen in the 1990s. “This trend represents not only an aging Canadian society, but also increased propensity to start a business among baby boomers,” writes Benjamin Tal, the report’s author.
“The affordability and availability of technology enables older Canadians to provide services from home,” adds Tal. “They are also able to use their well-developed skills and take advantage of their wide business networks and connections more effectively.”
The CIBC report mentioned several other trends. Among them:
• Only 20% of those who started their own business in the past two years can be considered “forced” self employed. “With more business owners starting operations by choice, their likelihood of success may increase,” Tal writes.
• Men now account for almost 70% of total start-ups. The share of start-ups run by women fell from 45% in the 1990s and early 2000s to nearly 40% currently. But among established businesses, the percentage of female entrepreneurs rose from 27% in the early 1990s to 33% today. This suggests that women-owned businesses, on average, have higher survival rates.
• Educational services is the fastest growing segment of the newly self-employed. Start-up activity in health care and the scientific/technical sectors also rose notably.
All in all, a very interesting overview of current entrepreneurship activity in Canada. If you’d like to read the complete report, you can find it here.