In a year where the pursuit of flexibility, personal fulfillment, and autonomy is more valued than ever, a remarkable 51% of Canadians are considering starting their own business in 2024, according to the annual RBC Small Business Poll. This marks a 5% increase over last year, signifying a strong rebound after a two-year decline.
“Canada has always had a thriving entrepreneurial spirit, and it’s encouraging to see more Canadians envisioning business ownership,” says Don Ludlow, Vice President of Small Business, Partnerships, and Strategy at RBC. “With the evolving economy, Canadians are finding diverse pathways to entrepreneurship. However, support and guidance remain crucial for turning their dreams into reality.”
Passion Over Profit: Meaningful Work Trumps Money as Main Motivation
While the entrepreneurial dream has traditionally been fueled by the allure of financial freedom, the RBC poll reveals a shift in priorities. An overwhelming 93% of current and aspiring small business owners cite the desire for “meaningful work” as their top motivation. In contrast, 87% still acknowledge the appeal of making more money, but it’s clear that the drive to align personal values with professional pursuits is taking precedence.
This trend towards passion-driven entrepreneurship is especially prominent among younger generations. Gen Z (60%) and Millennials (46%) are more likely to prioritize doing work that resonates with their personal beliefs. As traditional job security becomes less reliable, more Canadians are seeking flexibility and autonomy in their careers.
Flexibility Fuels Entrepreneurial Ambitions
The desire for flexibility is another major factor behind this entrepreneurial surge. Nearly half (46%) of current small business owners say they launched their ventures to spend more time at home with their children, while 40% wanted more time to care for aging parents. Aspiring entrepreneurs express similar motivations, with a significant number of Gen Z (46%) and Millennials (48%) considering business ownership as a means to balance work and family responsibilities.
Side Hustles: A Gateway to Full-Time Entrepreneurship
The RBC poll highlights that Canadians aren’t diving headfirst into entrepreneurship; many are testing the waters first. For some, it starts with a passion project or hobby, with 31% of aspiring entrepreneurs already earning money this way. Another 28% are exploring side gigs in addition to their full-time jobs, while 15% are looking to turn their side hustle into a full-time business.
This gradual approach reflects a pragmatic mindset, with many seeking to reduce the risks associated with entrepreneurship while gaining valuable experience before making the leap.
Newcomer entrepreneurs are reshaping Canada’s business landscape
Immigrants play a crucial role in Canada’s entrepreneurial landscape, representing 32% of business owners with paid employees. In fact, Chinese immigrants are almost 50% more likely to start a business than the general population. RBC provides tailored resources and guidance to help newcomer entrepreneurs start, manage, and grow their ventures. Entrepreneurs can explore the various beyond banking services that RBC offers, from digital solutions to collaborations with Futurpreneur, which offers a core entrepreneur startup program for newcomers.
You can learn more by visiting www.rbc.com/startingabusiness.