Worried about job security in a shaky economy? More Canadians are considering the one surefire way to make sure you don’t get laid off: hiring yourself.
Driving the news: The share of Canadians who say they want to start their own business has hit an eight-year high of 59%, according to RBC, up 13 points in two years.
Why it matters: In some ways, this is good news. New small businesses account for almost half of new jobs created in developed countries and often drive technological innovation, so it’s positive that more Canadians are considering starting one.
- Canada isn’t exactly a hotbed of entrepreneurship these days. One analysis found that we have 100,000 fewer entrepreneurs than in 2000, when around 10 million fewer people lived here.
Yes, but: A spike in entrepreneurial ambitions can also be a sign of bad things happening in the economy, as people look to employ themselves when they can’t find a job or worry they’re likely to lose the one they have.
- That tracks with a steady uptick in the unemployment rate (now 7.1% overall and back above pre-pandemic levels) and falling job vacancies.
Bottom line: There’s a big difference between wanting to start a business and actually starting a successful business. Getting to the latter is difficult, and it will be even tougher in today’s difficult economic conditions.—TS