RBC poll shows that boomers are driving the
small business economy while millennials are looking to expand
it
TORONTO, Sept. 18, 2019 /CNW/ - Boomers – specifically
empty-nesters – are leading the way when it comes to
entrepreneurship, challenging the traditional notion of 'sliding
into retirement'. Nearly half (42 per cent) of small business
owners are boomers compared with 24 per cent who are millennials.
Among Canadians who have thought about starting a business, empty
nesters are the most likely (46 per cent) to actually have started
or purchased one, according to the 2019 RBC Small Business
poll.
What's their motivation? Half of boomers (49 per cent) who have
started or are thinking of starting a business say they want to
continue using their rich experience to supplement their retirement
income. Meanwhile 41 per cent of empty nesters among boomers say
that the catalyst was or will be their children being out of the
home.
"The future looks bright for the Canadian economy, which is
predominantly driven by small businesses," said Lori Darlington, Vice-President of Small
Business and Strategic Partnerships, RBC. "Canadian boomers are
incredibly entrepreneurial. Many are turning passion projects into
new ventures and leveraging their extensive experience to fuel
today's small business economy. At the same time, their spirit and
leadership is inspiring the next generation of aspiring millennial
entrepreneurs to build on the momentum."
Millennials will carry the torch
While the small
business economy is currently driven by boomers, the
entrepreneurial spirit is alive and well among the younger
generations. In fact, 70 per cent of millennials have thought about
owning a business – an increase of seven points from 2018 – and 53
per cent of millennial non-business owners are currently
participating in the side gig economy.
When it comes to their motivations, millennials are more likely
than other groups to say that they would start a business to:
- have control over their career (92 per cent);
- do something that aligns with their personal values (89 per
cent); and
- bring something new and exciting to the market (85 per
cent).
With more time on their horizon, millennials are also more
likely than any other age group to say they want to create
something that they can pass down to their children; nearly
two-thirds (62 per cent) agreed, compared with 44 per cent of the
general population. Meanwhile, only 34 per cent of empty nesters
cited this as a motivation for entrepreneurship, suggesting a
desire to do something personally meaningful with their time.
Aspiring entrepreneurs seeking more preparedness and
stability before taking the leap
While the number of
Canadians who are considering business ownership is on the rise
compared to last year (57% 2019 vs. 54% 2018), aspiring
entrepreneurs are showing more caution and preparation before
taking the leap. Their response indicated a much more pragmatic
approach to starting a business with 68 per cent of aspiring
entrepreneurs saying research was the most important step in
getting started. Current business owners, however, say that
reaching out to potential clients was the number one thing they did
to get their business off the ground.
Preparing to start
a business
|
Business
Owners
|
Aspiring
Entrepreneurs*
|
Reach out to
potential clients to drum up business
|
44%
|
49%
|
Research how to open
a business, including
seeking advice from other entrepreneurs and
business professionals
|
34%
|
68%
|
Test out a new
business idea in my spare time
|
26%
|
48%
|
Save money or pay off
debt
|
23%
|
52%
|
Seek out a
coach/mentor or business advisor
who can help me start and grow my business
|
21%
|
46%
|
Connect with
investors
|
12%
|
31%
|
* "Aspiring entrepreneurs" are non-business owners who
have thought about starting a business.
|
"Aspiring entrepreneurs today are more cautious about taking the
leap into business ownership. Part of that may be generational and
part of that may be influenced by the current economic and social
environment," adds Darlington. "While caution and preparedness are
important, it should never stand in the way of turning great ideas
and entrepreneurial dreams into reality. The good news is, RBC has
a wealth of insights, business advisors and solutions that go
beyond traditional banking to help Canadians take the leap to
ownership with greater confidence and ease."
RBC offers a range of easy-to-use, online and mobile solutions
to help aspiring and active owners along every stage of their
entrepreneurship journey. These include:
- Ownr, a quick, affordable and online way to get your business
registered or incorporated;
- A selection of business account packages that can be opened
online; and
- A suite of business-tailored offers and digital solutions that
go beyond traditional banking to help owners save time and money as
they manage their day-to-day operations.
About the survey
These are some of the findings of an
Ipsos poll conducted on behalf of RBC between June 21 and 24, 2019. For this
survey, a sample of n = 2007 Canadians aged 18+ was surveyed online
via the Ipsos I-Say sample and non-panel sources. Quotas and
weighting were employed to ensure that the sample reflects the
population parameters of Canada
and to approximate the sample universe. The precision of Ipsos
polls is measured using a credibility interval. In this case, the
results of the poll are considered accurate to within ±2.5
percentage points, 19 times out of 20, of what the results would be
had all Canadian adults been polled. The interval will be wider
among subsets of the sample population.
About RBC
Royal Bank of Canada is a global financial institution with
a purpose-driven, principles-led approach to delivering leading
performance. Our success comes from the 86,000+ employees who bring
our vision, values and strategy to life so we can help our clients
thrive and communities prosper. As Canada's biggest bank, and one of the largest
in the world based on market capitalization, we have a diversified
business model with a focus on innovation and providing exceptional
experiences to more than 16 million clients in Canada, the U.S. and 34 other countries. Learn
more at rbc.com.
We are proud to support a broad range of community initiatives
through donations, community investments and employee volunteer
activities. See how at rbc.com/community-sustainability.
SOURCE RBC Royal Bank