Why Grit and Leadership Skills Can Reverse Canada’s Entrepreneurship Decline

Hey there! Did you know that a focus on soft skills like grit and leadership could actually help turn around Canada’s declining number of entrepreneurs? It’s true! According to a recent report from the Business Development Bank of Canada (BDC), there are some key skills that could be missing in the entrepreneurial landscape. BDC, a Crown corporation that supports small and medium-sized businesses, teamed up with researchers at the University of Montreal to dig into this issue. They conducted surveys and analyzed data to get to the bottom of why there are fewer Canadians starting businesses these days. And guess what? They found some interesting insights!

First off, the study revealed that there are 100,000 fewer business owners in Canada compared to 20 years ago. That’s a significant drop! In 2022, only 1.3 individuals out of 1,000 started a business, whereas in 2000, it was three out of 1,000. So, what’s causing this decline? Well, there are a few factors at play. For one, many entrepreneurs are over the age of 50 and looking to retire. Additionally, the tight labour market in recent years has made it more enticing for Canadians to opt for a job rather than starting their own business.

But here’s where attitude comes into play. According to the study, a whopping 14% of Canadians express interest in starting a business, but only a fraction of them actually take the leap. So, what’s the missing ingredient? It’s grit! Entrepreneurs and coaches who participated in the study highlighted grit as the number one skill for success. Grit is all about being able to find solutions to problems, bounce back from failures, and manage stress. And the good news is that grit can be developed!

So, how can you cultivate grit? The study suggests a few strategies. First, set clear and challenging goals for yourself. This will help you stay focused and motivated. Second, build a support network of mentors and peers who can provide guidance and encouragement along the way. And finally, make sure to take care of your well-being by engaging in regular healthy activities like exercise and meditation. These practices can help you stay resilient and maintain a positive mindset.

Now, let’s talk about other important skills. According to BDC, marketing and finance skills are crucial during the startup phase of a company. However, as the organization grows in size and complexity, operational and leadership skills become more vital. So, it’s important to continuously develop these skills as you progress in your entrepreneurial journey.

The study collected data through online surveys and interviews. They reached out to established small-business owners, new or aspiring entrepreneurs, and even students from the University of Montreal. By gathering insights from various sources, the researchers were able to gain a comprehensive understanding of the challenges and opportunities in the entrepreneurial landscape.

One of the entrepreneurs who participated in the study is Rob Bancroft. He recently took over as the owner of Avante Manufacturing, a company based in Okanagan Falls, B.C. Rob believes that being a good leader is essential for success. He recognizes the importance of keeping his team happy, especially in a tight labour market. As he puts it, ‘Being good for people is good business.’

Pierre Cléroux, the chief economist at BDC, emphasizes the need to instill a sense of entrepreneurship in the younger generation. He believes that this is a crucial long-term economic concern that deserves more attention. While we often focus on the implications of an aging population for healthcare and the job market, we should also consider the significant changes in ownership that will occur.

So, there you have it! Grit and leadership skills can make a real difference in reversing Canada’s entrepreneurship decline. If you’re thinking of starting your own business, remember to cultivate grit, set clear goals, build a support network, and take care of your well-being. With the right mindset and skills, you can overcome challenges and thrive as an entrepreneur. Good luck on your entrepreneurial journey!