Last year, Techcouver editor in-chief Rob Lewis sat down with Shadi McIsaac, cofounder of Ownr, to discuss entrepreneurship in BC. The chief executive informed Lewis that, based on data from Ownr’s 2022 Entrepreneurship Survey, small business owners and aspiring solopreneuers were gaining optimism.
Since then, the market has remained turbulent. Optimism has morphed into realism, but that’s no signal of defeat. Hope is solidifying into action as Canadian companies leverage resourcefulness and creativity in the face of tribulation.
As inflation and economic uncertainty continue to challenge small business owners in Canada, the 2023 survey from Ownr, a Canadian legal management platform within RBCx, reveals how entrepreneurs are adapting to the current market conditions to achieve financial freedom.
According to the startup’s survey, cash flow issues are increasingly the top concern for entrepreneurs in 2023, with 46% of respondents indicating so, up from 39% last year. Meanwhile, inflation and economic uncertainty take a back seat, with only 22% of respondents identifying it as a top concern, down from 33% last year.
“What sets Canadian entrepreneurs apart is their resiliency and inventiveness,” McIsaac said last year. We are now seeing those traits begin to play out on the field.
Small businesses have been raising prices to adjust for inflation, with about 23% having raised prices by over 10%, and 30% saying it hasn’t affected their business yet but expect it to soon. Despite these challenges, many respondents feel more optimistic about their business plans now than they did six months ago.
A particular group that is looking to invest more in their business are solopreneurs, or individuals who operate their business alone without any partners or employees. Out of 67% of respondents who identified as solopreneurs, the majority said they hope to expand their team with the goal of growing their business.
Moreover, many new entrepreneurs are motivated by the current economic conditions to explore entrepreneurship as a means of keeping up with the rising cost of living, the survey found.
One in four small business owners started their business as an additional revenue source. This is an increase from the findings of Ownr’s 2022 survey, where only 18% indicated this. Additionally, the percentage of entrepreneurs who indicated they run their business as a side hustle has increased—from 37.8% in 2022 to 41.7% in 2023.
“Rather than deterring desires to pursue small business ownership, economic uncertainty has created a rise in solopreneurship, and it’s driving Canadian entrepreneurs to be more scrappy and creative as they adapt and pivot their business plans,” believes Sid Paquette, Head of RBCx.
Despite the challenges that small businesses face in Canada, the survey reveals that newcomers are seeing entrepreneurship as a path to financial independence. Among the 39% of respondents who identified themselves as a newcomer to Canada, almost half (47%) stated they were motivated to start a business in Canada to achieve financial freedom and support their family.
“Newcomers make up an important part of the fabric of the Canadian small business community by bringing their diverse perspectives and new ideas to the marketplace,” stated Derek Hopfner, Chief Revenue Officer at Ownr. “It’s essential that we break down barriers to entrepreneurship by understanding the nuanced needs and challenges of newcomers, and ensure that all aspiring entrepreneurs have access to the resources and support they need to thrive.”
“By empowering diverse small business owners, we can build a stronger, more vibrant economy for Canadians to benefit from,” Hopfner said.
Ownr’s goal is to take the stress out of incorporation and formation documents, ensuring that small business owners have all the legal documents they need to run their business.
The platform offers a range of legal-oriented services and tools designed to help entrepreneurs start, run, and grow their businesses. For example, all formation documents and digital signatures are stored securely online, so business owners can access them at any time without the need to search for documents.
“We are proud to have helped more than 100,000 Canadians launch their entrepreneurial dreams into reality through Ownr,” Paquette said, “and we remain committed to enabling small businesses to bring innovative new ideas to market and thrive on their entrepreneurial journey.”
While times aren’t easy for many, McIsaac reminds us that it is in the very nature of entrepreneurs to be “constantly looking for solutions to the challenges they face.”
“Canadian small businesses can overcome their challenges to position themselves for a stronger future,” she said.
She believes that the Pandemic stirred “entrepreneurial ambitions” throughout Canada.
“The pandemic altered us as a society and made us reevaluate our priorities in life,” McIssac observed, noting a shift in mindset for many workers away from traditional nine-to-five trappings and toward more entrepreneurial pursuits.
“Entrepreneurship remains alive and well in Canada,” affirms Paquette.
Royal Bank of Canada launched RBCx, a full-service platform to accelerate the entrepreneurial journey, in 2021. The venture arm provides access to capital solutions and operational expertise from startup to IPO and beyond, according to the bank.
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