Jun 22, 2022 Finance — Eric Giguere

According to a new survey, business owners are optimistic about the future despite concerns about another lockdown.

An analysis of Canadian business owners reveals how entrepreneurs are going from survival to revival. It also reveals the strategies they intend to use to increase revenue, and how COVID-19 affects their perceptions of entrepreneurship.

TORONTO, August 17 - Ownr , Canada's leading business formation and legal management platform, releases new data that reveals how entrepreneurs are positioning their businesses to support an economic recovery. The data revealed that many entrepreneurs are excited for their future, but further lockdowns or a lack in funding are putting stress on their ability planning and growing their businesses.

These are the key highlights of the survey

  • Almost every entrepreneur (92.1 per cent) who reported losing customers during COVID-19 is worried that further lockdowns and an uncertain economy will present challenges for them.
  • Entrepreneurs who lost customers due to the pandemic plan for regaining market share through expansion into new markets (43.1%) and new employees (19%) to help them scale.
  • Even with the negative effects of COVID-19, more than three quarters (79.2%) felt positive about managing a business. They were excited about the future and passionate about what they do.
  • Entrepreneurs worry about running out money (42.2%) and changing consumer habits (27.2%). These are two of the most important concerns for their business's performance outlook.

The Great Resignation can propel new business creation

Many companies have had to come up with innovative ways to keep their culture intact and retain staff during the COVID-19 epidemic. More than half of entrepreneurs (54.6 per cent) surveyed held corporate jobs before launching their own businesses, pointing to a positive shift in the perception of entrepreneurship as a source of income and employment.

"Entrepreneurs represent the most resilient individuals in our business community. They are the people that we want to be," Shadi McIsaac, co-founder of Ownr and CEO, said. "As we look to economic recovery, it is clear that Canadian entrepreneurs remain uncertain about the future. They may need continued assistance to keep businesses afloat in this difficult time."

Shopfronts are shrinking

Many new businesses were founded online amid widespread government lockdowns. Small business owners concentrated on investing in their digital presence. A majority of entrepreneurs, 76.9%, said their business had an internet presence. However, 30.3% operate completely online. Half of entrepreneurs (56.4%) said they do not plan on opening a physical shop in the near-term. This highlights the potential danger in the revival and expansion of traditional retail locations that are vital to our communities.

Shane Murphy Chief Operating Officer, Ownr said that Ownr data has given him remarkable insight into how the pandemic had influenced the perceptions of entrepreneurs about the future. "This survey confirms our top concerns in supporting entrepreneurs during the early stages of business ownership and as they grow."

The following are additional survey highlights:

  • 36.6 percent) The main reason entrepreneurs choose to become business owners was to find more meaning in their lives.
  • Nearly half (41.2 per cent) of entrepreneurs whose businesses do not generate revenue expect to see income flow within six months.
  • One third of entrepreneurs (34.6%) chooses business ownership to give them greater control over the development of their careers.
  • Insufficient funding (44.9%) and economic uncertainty (34.9%) were the main obstacles faced by new business owners when starting their businesses.
  • Asking entrepreneurs if they could receive financial assistance in one aspect of their business, 49% of them (49%) answered yes.

About Owner

Ownr makes it easier and cheaper for businesses to launch and succeed. We know that starting and running a business takes a huge amount of effort. We simplify and automate business formation and legal work to make small businesses flourish. Ownr has been helping over 45,000 Canadians realize their dreams since 2017. RBC Ventures Inc. operates Ownr as a subsidiary of Royal Bank of Canada. Visit www.ownr.co for more information.

Methodology: This survey was conducted between July 5 and 16, 2021. It captures responses from 806 users of Ownr to their business needs. Each participant is either an established entrepreneur or is planning to start their own company. The results of this report have an estimated three per cent margin of error.

Author

With an aim to contribute to the development of Canada's Small and Medium Enterprises (SME's), Cmarketing Inc is a potential marketing agency and a boutique business management company progressing rapidly in its scope. By acknowledging a firm reliance of the Canadian economy over its SMEs, the agency has resolved to launch a magazine, the pure focus of which will be the furtherance of Canadian SMEs, and to assist their progress with the scheduled token of enlightenment via the magazine's pertinent content.

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