Millennials doubly likely to pursue entrepreneurship | canada.com

Millennials are twice as likely as the average Canadian to predict they’ll be their own boss within the year, according to new national research for Intuit.

In a survey of 1,002 adults, 16 per cent of those aged 18 to 33 said they intended to fulfill their entrepreneurial dreams within the next 12 months, compared to just eight per cent of other respondents. If you do the math, it means as many as 1.2 million new businesses could be helmed by young Canadians by this time next year – assuming those polled see their plans to fruition.

“Even it’s 50 per cent of (1.2 million) – even if it’s 40 per cent – that’s still massive,” said Jeff Cates, managing director at Intuit Canada, noting that the average number of annual start-ups, historically, is closer to 150,000. “That’s going to have a significant impact on the Canadian economy and the types of jobs created here.”

Cates cites the high youth unemployment rate, which is about double the national average, as a key driver. But a follow-up survey of Millennials who aspired to start their own businesses showed there was also more to it.

For instance, young wannabe entrepreneurs were nearly five times more likely to be motivated by the allure of charting their own course, and following a passion, than they were by money or status: 78 per cent versus 16 per cent. The opportunity to be their own boss was cited by 23 per cent of respondents.

Sixty-four per cent said they’d begun seriously planning their start-up. Preparation included market research (51 per cent), visiting entrepreneur-focused websites (49 per cent), taking a course on launching a business (35 per cent), and writing a business plan (31 per cent).

“Though they’re ambitious and they’re enthusiastic, they’ve also put real thought into what the challenges are,” said Cates, whose company helps link fledgling entrepreneurs with financial software, accountants, mentors and lenders. “It’s not just, ‘Hey, I don’t have a job, so this will be my next step.’”

After graduating from Georgetown University’s law school, Charles Benoit, 31, worked as in-house counsel for GE, as well as an independent contractor for that same organization. But while providing legal advice at a U.S. distillers’ conference, it dawned on the Toronto native that life might hold more for him.

“I could see how the (booze) business was viable, and clearly an insane amount of fun,” said Benoit, who in 2012 teamed up with a high school classmate to launch Toronto Distillery Co.

Toronto Distillery Co.’s spirits are mashed, fermented, and distilled on site.

“We were both in that sweet spot where we were done with school, and had the flexibility – and lack of responsibilities – that we could do something as reckless as starting a distillery…. If I was married, I’d probably be divorced.”

Intuit reports that 68 per cent of Millennial entrepreneurs will rely on personal savings, 38 per cent on the bank, 18 per cent on friends and/or family, and seven per cent on a third-party investor. In Benoit’s case, for example, the distillery was partially funded by a loan from the Canadian Youth Business Foundation.

“I can’t see myself trying this at 40,” said Benoit. “As a Millennial, you have a whole lot less to lose.”

The initial survey, of 1,002 adults, was conducted Aug. 28 to 29 by Angus Reid and is considered accurate within 3.1 percentage points, 19 times out of 20. The follow-up, with 464 aspiring business owners aged 18 to 33, was conducted Sept. 6 – 10 and is considered accurate within 4.6 percentage points, 19 times out of 20.

mharris@postmedia.com

Twitter.com/popcultini

• Among Canadians who graduated college or university in the last year, 40 per cent are still looking for a job.


• Almost half (44 per cent) of Canadians who graduated in the past five years who have found jobs, do not consider them to be a career.


• Roughly three-quarters (73 per cent) of recent postsecondary graduates cited lack of experience as a barrier to securing their first job.

Source: Ipsos Reid online poll for RBC, conducted August 23 – 28, 2013 with 516 Canadians aged 28 or younger who were recent postsecondary graduates (within past five years). Results considered accurate within five percentage points.

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