Decline in Entrepreneurship among Canadian Workers may be a Brief Trend, Experts Predict

A recent report from the Royal Bank of Canada has unveiled a decrease in entrepreneurship among Canadians, particularly in high-potential self-employment ventures. These ventures, which employ at least one other person, have become less appealing to younger Canadian workers. According to the report, as of 2022, only 4 per cent of self-employed Canadians have employees, compared to the 13 per cent who are self-employed.

Elspeth Murray, an associate professor and director of the Centre for Entrepreneurship, Innovation and Social Impact at the Smith School of Business at Queen’s University, is of the opinion that the decline in entrepreneurship is rational given the uncertain times we are living in. She suggests that many people are opting for side hustles while waiting for better economic opportunities, a sentiment also supported by a study by H&R Block, which shows that 28 per cent of Canadians have taken up side hustles in the last year, up from 13 per cent in 2022.

Ms. Murray remains positive about the future of entrepreneurship in Canada, stating that she anticipates a surge in entrepreneurship as the economy stabilises. She emphasizes the significance of a thriving entrepreneurial ecosystem in driving economic wealth and prosperity for business owners and employees in Canada.

In the broader context of entrepreneurship, Startup Genome has identified Calgary, Edmonton, and Quebec City as fantastic places to start businesses, with Canada producing 18 unicorn companies in 2021. Murray also highlights that the increase in side hustles presents an opportunity for individuals to develop entrepreneurial skills in a low-risk setting, increasing their likelihood of success when they decide to start their venture full-time.

Craig MacMullin, chief executive officer of the Centre for Entrepreneurship Education and Development in Nova Scotia, underscores the necessity of making entrepreneurship more accessible for the youth. He believes that youth are naturally entrepreneurial and can become the entrepreneurs of tomorrow. However, he notes the challenges in getting youth interested in entrepreneurship, including a lack of experience in entrepreneurship and the perceived risk of owning a business. MacMullin also sees entrepreneurship as an opportunity for socially conscious youth to take action on the causes they care about, providing them with a means to bring their vision to life and make a positive impact.

In other news, as of November 1st, 2023, employers in British Columbia are required to include pay ranges in job postings and prepare reports to identify systemic discrimination in pay. Additionally, Wildlife enthusiast Stephen Gianotti shares three lessons from the lives of African elephants in a TEDx talk, and discusses the potential of micro-retailers in developing countries to leverage digital technologies for their businesses.

Overall, the decline in entrepreneurship among Canadian workers may be a temporary trend, as experts predict a potential rise in entrepreneurship once economic conditions improve. There is also a call to make entrepreneurship more approachable for the youth, who have the potential to become the entrepreneurs of tomorrow.