According to a study conducted by BDC in collaboration with the Université de Montréal, not enough people are starting businesses to replace those closing their doors.
Despite a population of 40 million, Canada has 100,000 fewer entrepreneurs than it did 20 years ago, according to a BDC study conducted in collaboration with the Université de Montréal Innovation Centre and Millénium Québecor and released as part of BDC Small Business Week.
This general trend is alarming. By 2022, only 1.3 person out of 1,000 had started a business, compared to 3 out of every 1,000 in the year 2000. “This is worrying because entrepreneurship is crucial to the economy, fuelling innovation and economic growth,” said Pierre Cléroux, Vice-President, Research and Chief Economist at BDC.
The report identifies several factors contributing to this decline, including low unemployment, high wages an ageing population and a more complex business environment.