Sure, wages are higher, but no health care. When you start a business there, unless you come from money or have VC, you really are taking a huge risk without health insurance. There are things in Canada that are so much better.
Hell, I can’t imagine operating in the US litigation culture as a business owner. You’d need so much insurance haha.
Great, so we’ve got healthcare but instead face ruinous debt to be able to afford a business space or home.
That trade-off has gotten progressively worse over time, with the affordability of property and essentials going up while the quality/availability of healthcare has gone down.
If you’re comparing Toronto to Minneapolis or something, sure, you’ll find a cheaper place in the US. You could also compare to SF Bay Area and find that there’s places in the US that suck for cost of living too. And there’s places in Canada that don’t suck. I don’t mean to be a dick, but have you considered relocating someplace cheaper?
Much, much higher cost of entry on everything and the people with the money to even approach it are mostly owned by other corporations. I don’t see this as at all surprising.
Beat me to it. It’s astounding that the BDC doesn’t note the most obvious reason folks won’t start a business: if you’re already in a financially precarious position–as are many particulaly among younger cohorts–then starting a business looks like madness.
srsly, the malls here are mostly empty except for a few larger clothing chains and an ungodly amount of phone stores.
Used to have a locally run craft store, musical instrument shop, a place that sold decent quality footwear that also did repairs (holy shit is it hard to find good everyday shoes that don’t fall apart after a season), there was a place that did custom frames for paintings and large photos that also sold local artwork. Hell it used to have a food court with a few non chain takeout places there and the only dairy queen in the entire town, but that all got torn out and replaced with a Rossys.
Sure none of those businesses were super vital for the community, but they are gone and nothing has replaced them really. Mall owners would rather half their building be empty than charge a sane amount.
I suppose I’m the exception to the rule. I started my own business during COVID, and it’s going well. Tired as fuck, and not enough time for R&R, but it’s going well. I’m fortunate that I set up a really niche business with one real competitor established in this market in Canada – so there was room to disrupt. I also moved to Winnipeg to start up, where I can have a mortgage payment that is small enough to survive the first few years of business.
But I can’t imagine trying to start a business in Toronto or Vancouver unless you’re born into money. The risk of not being able to afford the cost of living is way too high. Nevermind trying to find a place to operate your business from…
I’m 26 and I’ve been running my own IT and computer repair business for 6 years out of commercial space. It’s rough and I’m not doing well financially. I’ve learned a lot though, so maybe being 65k in debt was worth it?
That’s harsh. But probably a fair lesson. Revenue streams are important, and debt snowballs if you don’t have enough revenue. It’s okay to take debt if it means growth at a rate that is faster than your interest rates. But you’ve really got to have a plan for that debt.
Three years in and our debt to earnings ratio is now very good, but the first few months after startup were really hairy, what with the capital on my house wagered…
BDC says few of those dreamers are becoming doers for several reasons:
People in their late 20s to early 40s are the most likely to start businesses, but that demographic is shrinking with Canada’s aging population, leaving a smaller pool of candidates as potential founders.
Low unemployment and high wages mean fewer people feel the need to start a new business.
Business owners and would-be entrepreneurs face a barrage of discouraging factors, such as labour shortages, inflation, technological change and the increasing domination of large companies.
It’s strange that they don’t include the cost of failure in that list.
Right now it feels like the only way to get a decent retirement and a nice upbringing for kids is to do everything right (including having the right parents). Risking equity and giving up a full-time job to take a chance isn’t worth it.
I heard a podcast a couple of years ago about startup rates in the US versus Canada. Apparently the cost of failure in many US states is much lower than it is in Canada: they have more forgiving bankruptcy and corporate law than we do. Meaning serial entrepreneurs don’t have to get it right the first time, and can afford a few locks at the can.
Apparently the cost of failure in many US states is much lower than it is in Canada: they have more forgiving bankruptcy and corporate law than we do. Meaning serial entrepreneurs don’t have to get it right the first time, and can afford a few locks at the can.
This favors the already wealthy/born into wealth far more than everyone else which contributes to the wealth gap. Especially since a single medical issue can undermine any progress while growing with far more financial impact than in a country with universal health care.
The US situation is favorable to some entrepreneurs.
This. Exactly this. Either they’ll buy your company or they run you out of town. We have quasi monopolies across so many sectors in Canada, is ridiculous. And that’s why the cost of living is so damn high.
Canada is 3 monopolies in a trench coat. The only independent ISP in Ontario is on it’s last legs, and most places have only one option for electricity and natural gas.
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