Self Employment in Canada

The current recession is sparking a new wave of small business startups in Canada as more and more Canadians who were laid-off from work are taking pro-active steps in reorganizing their affairs. This new breed of entrepreneurs resulting from poor economic times are found to be more motivated and have a higher chance for success. This is because the down-sized entrepreneurs tend to have job experience and some seed money resulting from severance packages.

Statistics Canada shows that 2.66 million people or 14.7 percent of the labour force in Canada were self employed (Dec. 2008) compared to 8% twenty years ago. 60 to 75% of new jobs in Canada are generated by small businesses. It is the fastest growing segment in the labour market amongst youths aged 19 to 34 years old. Another new trend is the "seniorpreneurs" or adult entrepreneurs aged 55 plus. It is found that 1 in 4 working adults over 55 plus have chosen self-employment.

Small business owners have the privilege of flexible hours, and working in their own terms. It is generally thought that small business owners tend to have lower pay. Yet research have shown that many self-made millionaires are from the self-employment group who consistently make over $100,000 a year over a period of time. The Canadian Tax Rules also encourage small businesses with a lifetime capital exemption gain of $750,000 from the sale of a privately controlled small business corporation.

Being self-employed is like driving your own little car compared to riding in a big bus where someone is the driver, and you are simply there for the ride. With your own little car, you can decide to stop, slow down or speed up. You make your own decisions and you have only yourself to blame. In many times, this can be very satisfying.

A Vancouverite accountant who recently became self-employed said: "I worked just as hard, if not harder. The amazing thing is, I feel so happy, because I have the control."

When life gives you lemon, make lemon juice. Sometimes, being laid-off is just the kick in the butt to get you focused in doing what you have to do! So, if you are a Canadian out of work, cheer up. Do something!

Small Business Profile in Canada

1. British Columbia - has 86.7 small businesses per 1,000 people - highest in the country.

2. Saskatchewan comes second place with 86.6 small businesses per 1,000 people

3. Alberta comes third place with 79.7 small businesses per 1,000 people.

Additional Reading Materials:
1. Downloadable Business Plans. - Looking for business ideas? Check out the different business planning guides including Wedding planner guide, Opening a Restaurant, Coffee Shop Guide... etc.

2. Canadian Government Assistance for Young Entrepreneurs. The government of Canada is doing its best to assist young Canadians wishing to become entrepreneurs. Help is available whether you are in need of business mentoring, coaching or assistance with seed capital. Loans are available at very attractive terms with no principal repayments for a period of 3 to 5 years.

3. Sidney Sommer - From Wage earner to Wage Payer. This article in the Globe and Mail January 2009 issue describes how Sidney Sommer, aged 33, laid off from his job in an aeropace company, moved home from San Antonio, Texas to his mother's basement in 2002 and started a business with borrowed money from friends and family. Today, the business has blossomed into a debt-free, $5 million a year company in the business of online security cameras.

4. Douglas College Self Employment Program (SEP) Spring 2008 newsletter. Douglas College in BC has been running their Self-Employment Training Program for the last 15 years and have trained more than 3,000 entrepreneurs. It won both national and international awards for having the most innovative training program of its kind. The Self-Employment Program is a government initiative to help working Canadians retrain, retool and reinvent themselves. A series of workshops give the trainees the necessary skill set to run a small business. Success rate for program participants is high. Douglas College graduates have the highest success survival rate of 67% after 5 years in business. Studies by the US Small Business Administration shows that 66% of new businesses survive after 2 years, 45% are open after 4 years and 39.5% are open after 6 years.

Useful websites for Canadian Small Businesses:
(If you know of a site that should be included in this list, please email us at info@canadianimmigrant.org)

Drop Ship Wholesale Directory - List of wholesalers who will drop ship.

2010 Commerce Centre This site was created to help your business to take advantage of the 2010 Games and this spectacular opportunity to show us, and the world, what you and your business have to offer.

Aboriginal Business Service Network Aboriginal Business Service Network provides business information, advice and referral services to meet the needs of potential and existing Aboriginal business people in BC.

BizMapBC BizMapBC is a source for "Commercial" and "Neighbourhood" Area Profile information describing the business mix, land use, development potential and customer markets based on the adjacent neighborhoods.

BizPal Convenient and easy to use, BizPaL can help you identify regulatory requirements by providing a single point of contact where you can access a comprehensive list of applicable business permits and licenses.

Canada Business - Government Business Guides These guides feature selected programs and services that the Government of Canada offers to small and medium-sized businesses.

Canada Business Services for Entrepreneurs Canada Business is a government information service for businesses and start-up entrepreneurs in Canada.

Canadian Youth Business Foundation CYBF is a nationally registered charity that helps young adults (18-34) who have great ideas but little money to start and build businesses. CYBF support young entrepreneurs by combining seed-financing up to a maximum of $15,000 with mandatory mentoring.

Community Futures BC: The Self Employment Explorer An online resource for youth (14-24 years) with disabilities or other barriers to explore entrepreneurship as a career option, including exercises, worksheets and the steps to creating a solid small business plan.

Community Futures Development Association CFDA is a community driven economic renewal initiative with a network of 34 Community Futures Development Corporations throughout BC. CFDCs help communities develop businesses through loans, technical support, training and information.

FrontCounterBC FrontCounter BC is a single window service for clients of provincial natural resource ministries and agencies. Offices across the province, natural resource clients obtain all the information and authorizations they need to start or expand a business

Junior Achievement of British Columbia (JABC) JABC is committed to inspiring and motivating B.C.’s youth through business education. It's programs offer students in grades 5-12 the opportunity to acquire valuable business acumen, develop leadership qualities and discover new career possibilities.

Ministry of Small Business & Revenue This Ministry provides programs and services for small business such as: regulatory reform; the Taxpayer Fairness and Service Code; the creation of a permanent small business roundtable and PST tax seminars and requirements.

OneStop Business Registration OneStop Business Registry provides easy access to business information and online business registry for small businesses throughout British Columbia.

Small Business Mentoring Project (Northwest BC) The Small Business Mentoring Project will provide small business owners located in BC's Northwest, at no cost, practical know-how towards addressing skill gaps and skills training.

Small Business Victoria Small Business Victoria assists in all aspects of the creation or expansion of small businesses in the Victoria region, from Corporate Name Registration and and BC Business Registration, to available programs and services, and business plan counselling.

Société de Développement Économique de la Colombie Britannique The SDE represents the interests of the economy sector of the francophone community by supporting development in the sphere of business, by fostering entrepreneurial activity amongst francophone business people.

Strategis - SME Direct SME Direct is a small business website that serves as a one-stop shop for all your small business needs. Diagnostic and benchmarking tools, informative websites / databases and a wealth of other resources are provided to assist you in your decison-making.

Western Economic Diversification Canada Western Economic Diversification Canada is committed to helping Western Canadian small and medium sized businesses grow and create jobs.

Women's Enterprise Centre The Women's Enterprise Centre helps women in BC start, grow and succeed in their own businesses. Their resources and services include: essential skills development; empowerment lending; and personal access to business expertise.

WorkBC B.C.'s online guide to employment resources. Check it out and use these resources to make the most of your part in our province's dynamic economy!

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