Revealing the trends and habits that are shaping the future for small business owners
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The New Generation of Entrepreneurship in Canada: 2022 Report
This report takes a closer look at the evolving entrepreneurial landscape, including the similarities and differences between the two audiences.
- Early Starts — defined as small business owners and entrepreneurs who started a business within the past two years
- Established Owners — defined as small business owners and entrepreneurs who started a business over two years ago
The study, conducted leveraging the Angus Reid panel on behalf of Intuit QuickBooks Canada, included a 2-question omnibus survey among n=1,503 nationally representative Canadians to track year-over-year entrepreneurship shifts in Canada, as well as a 10-minute online survey among n=645 Canadian small business owners to garner a deeper understanding of the overall rise in current small business owners in Canada, to uncover small business sales approaches, current use of technology and future business plans. Both surveys were conducted in English and French. The study took place online collectively between April 26 - May 4, 2022.
The future of Canadian entrepreneurship is all about the hustle
We’re at the precipice of a new chapter in our country where massive shifts in the way we work, live, and communicate are taking place -- and a new generation of entrepreneurs aren’t just experiencing this change, they’re leading it.
Powering prosperity for Canadian small businesses is the cornerstone of what we do at Intuit QuickBooks, and in the current economic climate, that’s never been more important. Despite a series of economic and financial challenges, including inflation, a looming recession and supply chain disruption, we are seeing innovation and entrepreneurship thrive. To gain insight into how the next generation of small businesses are shaping the future of the Canadian economy, we wanted to get a sense of how Canadian entrepreneurs are navigating this new horizon.
The results are nothing short of inspiring. As our survey shows, overall levels of entrepreneurship have remained stable, with 1 in 4 Canadian small business owners launching their ventures within the past two years. To put that in perspective, that’s 2.2 million Canadians -- more than the entire population of The Maritimes combined. What’s most interesting about this new generation of entrepreneurs is that they continue to evolve in new ways, with 51% likely to have multi-hustles, rather than one business.
Crucially, these Canadian entrepreneurs aren’t only continuing to innovate and help power the Canadian economy, but are optimistic about the future of Canadian business. With a number of hardships and challenging times over the past two years, it’s encouraging to see a renewed sense of optimism.
As entrepreneurship continues to grow and evolve, it’s increasingly clear that small business owners need every advantage they can get. As barriers to entering entrepreneurship decrease and innovative technology and tools expand to meet small business owners where they are, this period of growth will forever change the way entrepreneurs are born in Canada.
David Marquis
VP & Country Manager of Intuit Canada
Ready, set, grow! Our survey reveals that 1 in 4 Canadian small business owners (24%) started their business during the pandemic, which translates to over 2 million Canadians (2.2 million) – that’s more than the entire population of The Maritimes combined. Further to that, Gen Z and millennials make up more than half of the entrepreneurs (57%) who started these new businesses. One in four Canadian small businesses were started during the pandemic, according to new research from Intuit QuickBooks
Over the past two years, many may assume that interest in entrepreneurship has lessened or even been discouraged due to economic uncertainty – this isn't the case. Overall levels of entrepreneurship will remain stable in 2022.
- 3 in 10 Canadians are small business owners
- 16% of Canadian small business owners started their business within the past year, down from 21% in 2021.
While their ambition in uncertain times is inspiring, rising costs, and inflation are becoming an issue for entrepreneurs in Canada.
- 50% of Canadian small business owners agree that rising costs due to inflation are a challenge their business is facing.
- Despite these concerns, 86% of small business owners in Canada feel optimistic about the success of their business in the future.
The multi-hustle appeal
1 in 3 Canadian small business owners are currently running multiple businesses.
What drives them?
- 57% are driven by multiple streams of income
- 46% have an interest in various industries
- 45% have a higher overall income
- 34% small business owners like the challenge
Did you know:
27% of Early Starts cited a need to boost their income in response to rising inflation as the reason behind this multi-hustle trend, verses 16% of Established Owners.
In our digital-first world, entrepreneurs who are just starting their own business or have done so over the past two years (Early Starts) are redefining the table stakes of Canadian entrepreneurship.
These Early Starts are exhibiting tenacity, and setting bold objectives, taking on multiple side-hustles (multi-hustles).
- Who’s more likely to have multiple businesses?
- 51% Early Starts VS 29% Established Owners
With money as a primary motivator, Early Starts were born out of the desire to be their own boss.
- 63% of Early Starts earn more money as a small business owner than at their previous job.
Early Starts are also the digital adopters and technology integrators of the future. In this new digital era, social media is becoming a pillar for small business growth.
- 69% of Early Starts use social media, compared to 51% of Established Owners.
- 50% of Early Starts are more likely to advertise their business on social media, compared to 35% of Established Owners.
- 71% of Early Starts say tech plays a crucial role in their current business plans, compared to 61% of Established Owners.
The TikTok trend
24% of Early Starts are more likely to use TikTok for their business, compared to Established Owners (9%).
Most small business owners and entrepreneurs didn’t likely start a business to become full-time marketers. However, in our digital-first world, marketing has never been more important in helping a business grow and succeed.
- 46% of small business owners use social media for their business.
- Out of those who use social media, 9 in 10 feel it is an effective way to generate sales for their business.
What are the other common marketing strategies?
28% of small business owners use email marketing
22% of small business owners use search engine advertising
What social media channels are Canadian small business owners using?
- Facebook: 86%
- Instagram: 68%
- Twitter: 22%
- TikTok: 14%
- YouTube: 14%
Fun fact: YouTube is considered the second most effective social media platform in sales generation.
Why do small businesses use social channels?
- 73% to communicate with customers.
- 72% to increase brand awareness.
- 66% to grow their customer base.
- 65% to advertise products or services.
Did you know?
QuickBooks is committed to listening and partnering with small businesses to solve their biggest problems. Recently, QuickBooks and Mailchimp, one of the world’s leading marketing platforms, came together to help solve one of the most important challenges for small businesses— finding and managing customers.
- 3 in 10 small business owners use email marketing.
- Nearly 9 in 10 who use it say it’s an effective way to generate sales.
With the addition of Mailchimp, small businesses now have the tools they need to help find, engage, retain, and manage customers so they can grow and run their business with less work and more confidence.
As inflation worsens across the country, so does its impact on companies and organizations across all industries. With no signs of letting up any time soon, the trend appears to be hitting small businesses particularly hard and is creating concern for all owners — Early and Established.
Inflation poses a challenge for small business owners
50% of Canadian small business owners agree that rising costs due to inflation are a challenge their business is facing.
Other challenges identified by small business owners
- 37% say managing their time/working long hours.
- 35% say having enough cash flow.
- 34% say growing their customer base.
- 32% say hiring good talent.
Despite these concerns, the Canadian entrepreneurial spirit is relentless. Optimism is high among small business owners in Canada.
- 3 in 4 would never quit the entrepreneurial life and go back to a traditional job.
- Over 4 in 5 say the freedom of owning a business is more important than salary.
- Nearly 9 in 10 feel optimistic about the success of their business in the future.
Top reasons small business owners are optimistic about the future success of their business:
- 46% say increasing sales over time.
- 37% say growth within their industry.
- 33% say comfort using modern tech tools to run their business.
We want QuickBooks to be the source of truth for your business, and we are continuously innovating to provide you with the tools you need to power your business forward.
- How to Start a Business with No Money
- How to Use an Online Marketplace to Sell More
- 4 Ways to Measure Profitability and Grow Your Business
- How to Create a Marketing Plan
- Benefits of Social Media Marketing
- Webinar: Are You Truly Getting Social Media ROI?
- Local SEO Marketing Guide for Small Businesses
- How to Hire Your First Employee
This report takes a closer look at the evolving entrepreneurial landscape, including the similarities and differences between the two audiences.
- Early Starts — defined as small business owners and entrepreneurs who started a business within the past two years
- Established Owners — defined as small business owners and entrepreneurs who started a business over two years ago
The study, conducted leveraging the Angus Reid panel on behalf of Intuit QuickBooks Canada, included a 2-question omnibus survey among n=1,503 nationally representative Canadians to track year-over-year entrepreneurship shifts in Canada, as well as a 10-minute online survey among n=645 Canadian small business owners to garner a deeper understanding of the overall rise in current small business owners in Canada, to uncover small business sales approaches, current use of technology and future business plans. Both surveys were conducted in English and French. The study took place online collectively between April 26 - May 4, 2022.
The future of Canadian entrepreneurship is all about the hustle
We’re at the precipice of a new chapter in our country where massive shifts in the way we work, live, and communicate are taking place -- and a new generation of entrepreneurs aren’t just experiencing this change, they’re leading it.
Powering prosperity for Canadian small businesses is the cornerstone of what we do at Intuit QuickBooks, and in the current economic climate, that’s never been more important. Despite a series of economic and financial challenges, including inflation, a looming recession and supply chain disruption, we are seeing innovation and entrepreneurship thrive. To gain insight into how the next generation of small businesses are shaping the future of the Canadian economy, we wanted to get a sense of how Canadian entrepreneurs are navigating this new horizon.
The results are nothing short of inspiring. As our survey shows, overall levels of entrepreneurship have remained stable, with 1 in 4 Canadian small business owners launching their ventures within the past two years. To put that in perspective, that’s 2.2 million Canadians -- more than the entire population of The Maritimes combined. What’s most interesting about this new generation of entrepreneurs is that they continue to evolve in new ways, with 51% likely to have multi-hustles, rather than one business.
Crucially, these Canadian entrepreneurs aren’t only continuing to innovate and help power the Canadian economy, but are optimistic about the future of Canadian business. With a number of hardships and challenging times over the past two years, it’s encouraging to see a renewed sense of optimism.
As entrepreneurship continues to grow and evolve, it’s increasingly clear that small business owners need every advantage they can get. As barriers to entering entrepreneurship decrease and innovative technology and tools expand to meet small business owners where they are, this period of growth will forever change the way entrepreneurs are born in Canada.
David Marquis
VP & Country Manager of Intuit Canada
Ready, set, grow! Our survey reveals that 1 in 4 Canadian small business owners (24%) started their business during the pandemic, which translates to over 2 million Canadians (2.2 million) – that’s more than the entire population of The Maritimes combined. Further to that, Gen Z and millennials make up more than half of the entrepreneurs (57%) who started these new businesses. One in four Canadian small businesses were started during the pandemic, according to new research from Intuit QuickBooks
Over the past two years, many may assume that interest in entrepreneurship has lessened or even been discouraged due to economic uncertainty – this isn't the case. Overall levels of entrepreneurship will remain stable in 2022.
- 3 in 10 Canadians are small business owners
- 16% of Canadian small business owners started their business within the past year, down from 21% in 2021.
While their ambition in uncertain times is inspiring, rising costs, and inflation are becoming an issue for entrepreneurs in Canada.
- 50% of Canadian small business owners agree that rising costs due to inflation are a challenge their business is facing.
- Despite these concerns, 86% of small business owners in Canada feel optimistic about the success of their business in the future.
The multi-hustle appeal
1 in 3 Canadian small business owners are currently running multiple businesses.
What drives them?
- 57% are driven by multiple streams of income
- 46% have an interest in various industries
- 45% have a higher overall income
- 34% small business owners like the challenge
Did you know:
27% of Early Starts cited a need to boost their income in response to rising inflation as the reason behind this multi-hustle trend, verses 16% of Established Owners.
In our digital-first world, entrepreneurs who are just starting their own business or have done so over the past two years (Early Starts) are redefining the table stakes of Canadian entrepreneurship.
These Early Starts are exhibiting tenacity, and setting bold objectives, taking on multiple side-hustles (multi-hustles).
- Who’s more likely to have multiple businesses?
- 51% Early Starts VS 29% Established Owners
With money as a primary motivator, Early Starts were born out of the desire to be their own boss.
- 63% of Early Starts earn more money as a small business owner than at their previous job.
Early Starts are also the digital adopters and technology integrators of the future. In this new digital era, social media is becoming a pillar for small business growth.
- 69% of Early Starts use social media, compared to 51% of Established Owners.
- 50% of Early Starts are more likely to advertise their business on social media, compared to 35% of Established Owners.
- 71% of Early Starts say tech plays a crucial role in their current business plans, compared to 61% of Established Owners.
The TikTok trend
24% of Early Starts are more likely to use TikTok for their business, compared to Established Owners (9%).
Most small business owners and entrepreneurs didn’t likely start a business to become full-time marketers. However, in our digital-first world, marketing has never been more important in helping a business grow and succeed.
- 46% of small business owners use social media for their business.
- Out of those who use social media, 9 in 10 feel it is an effective way to generate sales for their business.
What are the other common marketing strategies?
28% of small business owners use email marketing
22% of small business owners use search engine advertising
What social media channels are Canadian small business owners using?
- Facebook: 86%
- Instagram: 68%
- Twitter: 22%
- TikTok: 14%
- YouTube: 14%
Fun fact: YouTube is considered the second most effective social media platform in sales generation.
Why do small businesses use social channels?
- 73% to communicate with customers.
- 72% to increase brand awareness.
- 66% to grow their customer base.
- 65% to advertise products or services.
Did you know?
QuickBooks is committed to listening and partnering with small businesses to solve their biggest problems. Recently, QuickBooks and Mailchimp, one of the world’s leading marketing platforms, came together to help solve one of the most important challenges for small businesses— finding and managing customers.
- 3 in 10 small business owners use email marketing.
- Nearly 9 in 10 who use it say it’s an effective way to generate sales.
With the addition of Mailchimp, small businesses now have the tools they need to help find, engage, retain, and manage customers so they can grow and run their business with less work and more confidence.
As inflation worsens across the country, so does its impact on companies and organizations across all industries. With no signs of letting up any time soon, the trend appears to be hitting small businesses particularly hard and is creating concern for all owners — Early and Established.
Inflation poses a challenge for small business owners
50% of Canadian small business owners agree that rising costs due to inflation are a challenge their business is facing.
Other challenges identified by small business owners
- 37% say managing their time/working long hours.
- 35% say having enough cash flow.
- 34% say growing their customer base.
- 32% say hiring good talent.
Despite these concerns, the Canadian entrepreneurial spirit is relentless. Optimism is high among small business owners in Canada.
- 3 in 4 would never quit the entrepreneurial life and go back to a traditional job.
- Over 4 in 5 say the freedom of owning a business is more important than salary.
- Nearly 9 in 10 feel optimistic about the success of their business in the future.
Top reasons small business owners are optimistic about the future success of their business:
- 46% say increasing sales over time.
- 37% say growth within their industry.
- 33% say comfort using modern tech tools to run their business.
We want QuickBooks to be the source of truth for your business, and we are continuously innovating to provide you with the tools you need to power your business forward.
- How to Start a Business with No Money
- How to Use an Online Marketplace to Sell More
- 4 Ways to Measure Profitability and Grow Your Business
- How to Create a Marketing Plan
- Benefits of Social Media Marketing
- Webinar: Are You Truly Getting Social Media ROI?
- Local SEO Marketing Guide for Small Businesses
- How to Hire Your First Employee
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