More Canadians becoming entrepreneurs, finding it easy
October 31, 2012
Along with many other countries around the globe, the Canadian economy floundered in the wake of the 2008 recession. Recovery has not been easy, as a number of companies have gone under as a result, leaving many individuals unemployed. However, now that the fiscal climate is beginning to pick up again, some are looking to forge their own paths, and an increasing number of people are becoming enterprise owners.
These individuals are also relatively lucky in that the Canadian business landscape is rapidly evolving. The government is cutting down on the red tape that limits processes, like taxation, loan accessibility, reporting finances via accounting software and a number of other crucial elements of managing a company.
More Canadians taking charge
According to a recent CIBC report, as of June, more than half a million Canadian citizens were in the process of beginning their own companies. British Columbia led the pack, followed closely by Alberta and Saskatchewan, and many of the businesses being founded were in the education, science or health industries.
The study also explained that more women are entering the entrepreneurial fold, which has been largely male-dominated for a number of years. Around 70 percent of startups in Canada are owned by men, but female-owned businesses are becoming much more common. Younger individuals are also increasingly looking to own their own firms as well.
"They know that Mark Zuckerberg founded Facebook. They understand what Steve Jobs did with Apple," Rotman School of Management professor Becky Reuber told Canadian Business, explaining that many of these individuals breaking into company-owning are of a younger set, which bodes well for the future of the sector in the next few years.
Finding it easier to start a company
These people are increasingly facing less red tape when they're trying to start a business. According to the National Post, the federal government made an announcement that it was going to aggressively cut back red tape in an effort to boost Canada's economy. The source said the Red Tape Reduction Action Plan would be examining a number of regulations that can make it harder for companies to get off the ground and consider changing wording to make them more flexible.
"Small businesses will, as a result, devote less time, energy and resources to meeting administrative burden and more time focusing on their businesses," Treasury Board President Tony Clement said in a release.