Entrepreneurial business boom brewing
Despite economic uncertainty, survey results reveal Canadian entrepreneurship aspirations hit a new high.
While much of Canada awaits the spring thaw, entrepreneurs are looking to break ground on new ventures. Fifty-nine per cent of Canadians aspire to start their own business – the highest level in eight years – according to the annual RBC Small Business Poll.
This optimism may run contrary to doom-and-gloom headlines about trade tensions, inflation, a weakened dollar, and one of the highest unemployment rates among G7 countries. Ontario bests the national average at a whopping 68% of adult respondents (age 18+) with small business aspirations, followed by Atlantic provinces at 62%, and with Alberta, Manitoba and Saskatchewan tied at 60%. While not a low number, 45% of Quebecers, by comparison, are looking to own a business. Overall, eight in 10 Canadians believe small business ownership is a viable way to earn a living today, according to the survey.
Commissioned by RBC and conducted online by Ipsos Canada, the recent poll also revealed those who already own a business are optimistic about growth – despite economic headwinds. In fact, six in ten (61%) have adjusted their business strategy in the past year due to market volatility, shifting trends, and the adoption of new technologies, like AI.
Canadian businesses optimistic, resilient
“As we do every year, we wanted to better understand the mindset of Canadians when it comes to entrepreneurship,” Karen Svendsen, RBC senior director of Small Business and Partnerships, said in an interview with Postmedia. “Every year we explore how people are feeling about starting or growing a business in the current environment – what’s motivating them, what challenges they’re facing, what changes year over year, and where they may need support.”
“Entrepreneurial spirit in this country remains strong,” Svendsen summarized. “Many Canadians see business ownership as an opportunity to pursue their passions, build financial independence, and create something of their own.”
When asked to explain the optimism despite economic uncertainty – that is, wouldn’t Canadians prefer a steadier 9-to-5 job rather than take risks in today’s shaky financial environment? – Svendsen said there’s often an “inverse relationship” between entrepreneurship and hard times.
“Sometimes it’s through necessity, people no longer have that salaried employment, or they look around and say, ‘Maybe there isn’t a certainty, and so maybe now’s the time to pursue my dream and get a little bit of control over my financial future,”’ she said.
Svendsen said the survey results paint a picture of cautious optimism and strong resiliency.
Seasoned entrepreneur and tech expert Amber Mac said she’s “not surprised” that more Canadians are keen to start their own businesses today, despite a negative economic outlook.
“I think what we’ve learned over the past few years is that being your own boss is one of the best ways to have real freedom to choose how to spend your time.”
“Also, thanks to new tech such as AI, it’s easier than ever to start, run and scale a business,” added Mac, who is based in Toronto.
Likely spurred by rhetoric south of the border, Mac also said a surge in patriotism should also be embraced by entrepreneurs.
“Canadians are hungry for local products and services … it’s an incredibly exciting time to grow a small business here in Canada,” she said.
Tech can help
Perhaps it’s no surprise, 20% of business owners cite investing in digital transformation as a top priority over the next three years, according to the RBC Small Business Poll. And nearly a quarter (23%) say digital and/or AI tools are or will be helpful in managing through challenging times.
“In my own small business, AI tools such as Claude are also invaluable as we create scripts for our podcast and stories for our newsletter,” Mac said. “Our team continues to do more high-level sales and strategy work, but AI tools have absolutely helped with repetitive, time-consuming tasks, such as editing short vertical video clips for social media.”
“In this case, we use OpusClip, which can produce a dozen short vertical video clips in the same time it takes me to pour a cup of coffee,” she explained.
The explosion in generative AI platforms can help bootstrapped entrepreneurs do more with less.
But what about when these organizations become much bigger players?
Larger companies need an AI boost
Medium-sized businesses, however, are not adopting AI fast enough to remain productive and competitive, argues Steve Leslie, CEO of Quadbridge, a Montreal-based organization that focuses on helping mid-market customers adopt IT effectively – including tools like artificial intelligence.
“Our latest whitepaper, The State of AI Adoption in Mid-Market, found just 10% of respondents believe they are implementing AI at scale, while the vast majority, at 90%, fall into the ‘experimentation’ category,” Leslie said in a phone interview just ahead of the company’s QBITS conference, an annual IT leadership development gathering in Montreal.
“The Canadian midmarket space is moving slower than the enterprise space,” and ostensibly, compared to small businesses, evidenced by RBC’s data, he said.
“The slow pace of midmarket’s AI adoption in Canada is a function of our market being mostly smaller businesses, and with narrow enterprise scale, when compared to the U.S.,” Leslie added. “Risks and complexity are top of mind, requiring executive sponsorship to advance adoption. This is where Quadbridge comes in – to embed secure, governed, and organization-wide AI into daily workflows.”
On how to thread the needle, Leslie said Quadbridge first assesses an organization’s strategy and willingness to implement AI, as well as explore what outcomes they’re looking to gain by these emerging technologies.
“Our goal is to empower organizations, providing employees with tools they need to become even more productive, and showing executives, boards and investors the return on investment they can expect through adopting smart technology as a tool,” he explained.
“Canadian businesses of all sizes are poised for tremendous growth,” Leslie concluded, “and they shouldn’t be afraid to move from AI experimentation to strategic implementation, but with discipline and clarity, and scaling when the conditions are optimal.”
