Despite concerns about another lockdown, entrepreneurs excited about the future, according to new survey of business owners
A survey of Canadian business owners uncovers how entrepreneurs are moving from survival to revival, including the strategies they plan to implement to drive revenue and how COVID-19 has impacted their views of entrepreneurship.
TORONTO, 17 August -Canada's most trusted platform for legal and business formation, Ownr, has released new data showing how entrepreneurs are positioning themselves to help the economy recover. The data reveals that while many entrepreneurs are excited about their future, further lockdowns and a lack of funding are placing pressure on their ability to plan and grow their businesses.
Key survey highlights include:
- 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.
- In order to gain market share, entrepreneurs who lost customers to the pandemic should expand their markets (43.1%) and hire new employees (19%) to ensure they scale.
- However, COVID-19's impact was not a factor in the majority of respondents feeling positive about managing businesses (79.2%) who were asked their feelings about how they felt about it.
- Entrepreneurs are most concerned about their business's future performance if they run out of money (42.2%) or changing consumer preferences (26.7%)
The Great Resignation may be the catalyst for new business creation
Many businesses have struggled to keep their culture alive and to retain their staff during the COVID-19 crisis. A majority (54.6 percent) of entrepreneurs surveyed worked in corporate jobs before starting their own businesses. This is a positive shift that has led to an increase in the acceptance of entrepreneurship and its potential for earning income.
"Entrepreneurs are some of the most resilient members in our business community. They are what we aspire too," Shadi McIsaac is the CEO and co-founder of Ownr. "As we look towards economic recovery, it's clear that Canadian entrepreneurs are still uncertain about the future and they might need some continued assistance to keep their businesses afloat during this challenging time."
The number of storefronts is shrinking
Many businesses started online amid nationwide lockdowns. Small-business owners focused on building their digital presence and investing in new technologies. Three out of four entrepreneurs (76.7%) said their business has an online presence, while 30.3 percent reported that they operate exclusively 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.
"Ownr data has provided remarkable insights into how the pandemic has influenced the perception of future opportunities and hurdles among entrepreneurs," said Shane Murphy, Chief Operating Officer of Ownr. "This survey confirms what we believe to be their top concerns when we support entrepreneurs throughout their business growth, from the beginning stages of their ownership through to their later years."
Additional survey highlights include:
- 37.6% of entrepreneurs chose to start a business to fulfill a primary purpose.
- Nearly half (41.2%) of entrepreneurs whose businesses don't generate revenue anticipate income flow in six months.
- Entrepreneurs make up 34.6 percent of the total population. This is because they have more control over their career development.
- Lack of funding (44.9%) was the biggest challenge for new business owners while they started their business. Economic uncertainty (34.9%) was also a major concern.
- If asked by entrepreneurs if they could get help in one part of their business, 50% (49%) would say yes to funding. This includes loans and grants.
About The Owner
Ownr makes it easier and cheaper for businesses to launch and succeed. We understand that running a business requires a lot of work. By simplifying and automating business formation and everyday legal work, we help small businesses thrive. Over 45,000 Canadians have used Ownr to help them achieve their goals since 2017. RBC Ventures Inc. manages Ownr, 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 existing entrepreneur, or they are planning to start their own business soon. The results of this report have an estimated three per cent margin of error.
Cmarketing Inc aims to help Canada's Small and Medium Enterprises develop (SME). It is a potential agency and a business management company that is rapidly expanding its reach. Recognizing that the Canadian economy is more important than its SMEs in Canada, the agency decided to launch a magazine. Its sole purpose will be to promote Canadian SMEs and offer a token of enlightenment through the relevant content.