How to Be a Successful Entrepreneur in Canada

What Does it Take to Be an Entrepreneur?

Being your own boss is a dream of many. Owning a passion to do something is another motive to be an entrepreneur.

However, having a great business idea is not good enough to run a successful startup. While passion is a great motive a feeling of accomplishment and achievement is equally appealing to business founders.

Successful entrepreneurs share some key attributes:

·      The desire to become independent – Being your own boss.

·      They are creative and intuitive thinkers.

·      They’re motivated, self-assured, and confident in their abilities.

·      A key attribute of successful entrepreneurs is they are all action-oriented.

·      Successful entrepreneurs embrace ambiguity and thrive on learning new ideas and skills whenever they get a chance.

Entrepreneurship in Canada

World Bank’s yearly report on Business Enabling Environment (BEE) for 2020 placed Canada in 23rd rank. It achieved a score of 79.0 for the year.

Canada is placed among the top countries in the world when it comes to welcoming startups and entrepreneurship.

97% of Businesses are SMEs

Nearly 97% of all businesses in Canada are small and medium enterprises. It shows the reliability of the Canadian economy in the diversified SME sector.

These businesses have played a strong role in job opportunities in the country historically.

Large Market

Canada is a large consumer market and is surrounded by potentially larger untapped markets as well.

Entrepreneurs and startups entering Canada must not forget the neighboring US, Latin America, and its bigger trade partner EU markets.

Tax Rebates

Canada offers different types of tax credits and rebates to startups. The federal government has a research & development tax credit that applies to most startups in different industries.

State tax rebates and incentives are also encouraging for startups.

Foreign Visa

A key attraction for startups in Canada is the permanent residency status for founders and entrepreneurs here.

The government is offering a flexible and attractive visa policy to attract the best talent pool from around the world.

Key Challenges for Entrepreneurs in Canada

Like any other economy in the world, Canada faces some challenges as well. Startups often find some difficulties that may hinder their progress and ambitious ideas.

Regulatory Requirements

Although the business registration and licensing process are fairly easier in Canada, some other regulatory constraints remain there.

For instance, businesses looking to build their offices or start a construction project may have to wait up to one year to complete the licensing process.

Similarly, electricity permits take longer than in other developed economies.

Cross-Border Trade

Many startups struggle to comply with the cross-border trade regulatory environment. Canada imposes stricter cross-border trade regulations including VAT, excise, and levies.

Technology Challenges

The country is developing its tech sector rapidly. Still, businesses feel a sense of motivation and inspiration from the neighboring US country.

Also, dealing with cybersecurity has been a challenging task for the Canadian government in the recent past.

Harmonizing Workforce

Canada is a welcoming country for foreigners. It also means startups are likely to find a diversified workforce in terms of culture, gender, skill set, and background.

Successfully harmonizing such a diversified workforce can be challenging but equally rewarding for any entrepreneur.

Capital Investment Challenges

Around 81% of entrepreneurs in Canada suggested that raising capital from the local market remains a critical challenge for them.

However, the same lack of investment has attracted more venture capitalists.

Opportunities for Entrepreneurs in Canada

Canada’s focus on research & development, its core values of fairness, equality, and inclusiveness, and a competitive tax environment are all encouraging signs for startups.

Venture Capitalists

The lack of government funding and other financial hurdles meant venture capitalists found an opportunity in Canada.

The Canadian Venture Capital and Private Equity Association (CVCA) is working hard to attract more VCs and private equity investors.

Early Acquisition Trends

Many startups in Canada are acquired by large companies through mergers or full acquisitions.

Depending on your long-term financial goals, it can be a good opportunity to scale up your startup quickly.

Encouraging Tax Rates

Corporate income tax and GST/HST rates in Canada are competitive. The federal income tax rate is 38% on Part I income and 28% after abatement.

Small businesses under the Canadian Controlled private corporations structure pay at 9%.

Similarly, some states and territories combine GST/VAT tax rates. For instance, it is a 13% combined VAT rate in Ontario.

Top Tips to Become a Successful Entrepreneur

Here are a few quick tips for you to succeed in Canada as a successful entrepreneur:

·      Harness the benefits of a diversified workforce in Canada. Bring creativity to your startup by expanding your talent pool.

·      Building a strong local network will ensure you grow faster. Aim to build a strong local social and business network as quickly as possible.

·      Avail of government loans, R&D credits, and startup grants wherever available.

·      Do not haste in putting your business for a forward acquisition. Focus on scaling up your business first.

·      Successful entrepreneurs possess the quality of perseverance. They remain determined despite failures and obstacles.