TORONTO – (COMMERCIAL THREAD) –Owner, Canada’s leading business and legal management platform today announced the release of new data revealing the impact of COVID-19 on new business creation. Data shows that entrepreneurs have had a huge impact on their ability to survive the pandemic by pivoting their business offerings and recognizing opportunities to fill gaps in their industry.
The main highlights of the survey include:
22% of business owners have adapted their business strategy during COVID-19 in response to a negative financial impact suffered by their business.
More than a quarter (26%) of new entrepreneurs in 2020 said the pandemic created a gap in the market that their new business was filling.
20% of new entrepreneurs in 2020 saw their jobs threatened due to COVID-19 and started their own business to be proactive.
14% of new entrepreneurs in 2020 started their business following a layoff.
Entrepreneurs see e-commerce as the way to go
Although it has been disproportionately affected by blockages and stay-at-home orders resulting from the COVID-19 pandemic, retail has remained the fastest growing industry for new business owners in the country. Canada.
Retail was the # 1 industry to see new businesses launched in Ontario, British Columbia and Alberta, with 62% of business owners predicting e-commerce will play a bigger role in their business throughout 2021.
“There is no doubt that the impacts of COVID-19 have been significant, but there is a lot to be said for the resilience and courage of entrepreneurs, âsaid Shadi McIsaac, Co-Founder and Head of Owner. “We expected fewer entrepreneurs to make the jump into retail during COVID-19, but we were encouraged to see 88% growth in new direct-to-consumer businesses launched on Ownerof the platform over the past year compared to 2019. It really highlights the tenacity of independent business owners, even in these tough times. ”
Entrepreneurship of future business owners has not been shaken by COVID-19
Despite the significant talk around COVID-19 focused on the challenges of small businesses, budding entrepreneurs remain determined in the background, with 95% of non-business owners surveyed saying they are still considering starting their own business in the future.
“The fact that so many Canadian entrepreneurs are still looking to start a business is an optimistic signal that small businesses could remain the backbone of the economy that shapes and drives Canada in a post-COVID world, â said Shane Murphy, COO of Owner.
Additional survey highlights include:
43% of business owners experienced fewer customers and weaker sales than expected during COVID-19.
A quarter (26 percent) of business owners said difficulty accessing finance was a major cause of financial impact.
Almost half (46 percent) of aspiring entrepreneurs said the biggest barrier to starting a business was not knowing where to start, highlighting the need for more resources and education for small business owners. .
Only 20% of entrepreneurs started their business before the age of 30, the majority (46%) having started between 30 and 44, proving that it is never too late to launch a new product or service on the market.
Unfortunately, 14% of entrepreneurs are still planning to shut down their business for good in 2021.
Owner makes it easier and more affordable for businesses to start and succeed. We know that starting and running a business takes a lot of effort. By simplifying and automating business start-ups and day-to-day legal work, we help small businesses thrive. Owner has helped more than 30,000 Canadians achieve their dreams since 2017. Owner is operated by RBC Ventures Inc., a subsidiary of Royal Bank of Canada. For more information visit www.ownr.co/.
Methodology: Ownr surveyed 29,694 of its users, whether or not they started a business, and received 890 responses to an online questionnaire between January 21 and 25. The survey has a 3.24% margin of error at a 95% confidence level. .