11:30am ET | Benjamin Tal, Deputy Chief Economist
TOPIC – Canada to see unprecedented boom in new businesses in the coming decade: CIBC
INFO – TORONTO, Sept. 25, 2012 /CNW/ – Canadians are expected to become their own bosses at an accelerated pace in the coming decade, with more than half a million entrepreneurs in the process of establishing their own business this year, finds a new report from CIBC.
“Irreversible structural forces suggest that the next decade might see the strongest start-up activity in the Canadian economy on record,” says Benjamin Tal, deputy chief economist at CIBC. “The gradual shift to a strong culture of individualism and self-betterment; the role of technology in driving the transition from boardrooms to basements; the more global and inter-connected markets that require greater specialization, flexibility and speed; as well as small business friendly demographic trends are among those forces that are likely to support a net creation of 150,000 new businesses in Canada in the coming ten years.”
The report finds a number of interesting trends among today’s new business owners.
- Being self-employed is a choice with only 20 per cent of new owners doing so because they couldn’t find a job;
- The 50 and over age group is the fastest growing segment of new business owners accounting for nearly 30 per cent of start-ups;
- The self-employed are more educated – a third have a university degree;
- 70 per cent of new businesses are started by men but women tend to be more successful;
- Educational services (up almost 65 per cent since 2007) and health care are (up almost 20 per cent) are growing fastest:
- B.C. leads the country with start-ups representing 3.9 per cent of the employed population.