Self-Employment Pulls Back As Younger Canadians Shy Away From Entrepreneurship: RBC
Courtesy Barrie360.com and Canadian PressPublished: Oct 5th, 2023
Toronto
Younger Canadians don’t want to be their own bosses, intensifying the slowdown in entrepreneurship in Canada, according to a new RBC report.
The decline in the self-employment rate is also being amplified by soaring inflation, strong labour markets and uncertainty caused by the COVID-19 pandemic, the report says.
While self-employment rates for younger Canadians aged 35 to 44 have always tended to be lower compared with older cohorts, the report says the share of younger people seeking to “be their own boss” has fallen to two per cent, from 3.3 per cent in 1998.
Cynthia Leach, assistant chief economist at RBC, suggests strong labour markets and higher hourly wages for employees are likely contributing factors to the slowdown in self-employment.
The report shows a professional, scientific or technical services employee earns 20 per cent more than self-employed individuals while also enjoying flexible hours, which used to be a perk limited to those who are self-employed.
Leach says she doesn’t see the trend in declining entrepreneurship reversing despite the expected softening in the job market next year as the higher cost of living and continued wage increases make paid employment the more enticing option.
Patricia is the Business Mentor and owner of Grow Vantage and a Past President of the Barrie Chamber of Commerce. She applies over 30 years of business experience (from start-up to corporate) to mentor entrepreneurs. Since 2011, she has held over 6,500 coaching and training sessions in-person and online. Through Ask For Directions Training, her entrepreneurial training program (and parent company Grow Vantage), and as a business coach, she works with start-ups who are new (or who have lost traction) to design, launch and grow their businesses. Along with 20 other expert instructors she teaches strategies in marketing, sales, communications, and finance, as well as practical techniques to increase productivity, and manage their businesses. In other words, everything entrepreneurs need to learn to grow and run their businesses successfully, and avoid the costly mistakes they can't even see coming - that lead to delays in growth and getting stuck.
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