Canada's Startup Dream: Why Ambition Isn't Turning into Action

TORONTO, ON – January 14, 2026 – A wave of entrepreneurial ambition is sweeping across Canada, with new research indicating that nearly half of the population (46%) hopes to start their own business in 2026. However, this surge in aspiration is colliding with a wall of uncertainty, as many would-be founders find themselves stuck before they even begin.

A study released today by Ownr, RBC's platform for entrepreneurs, points to a significant 'preparation anxiety' gripping aspiring business owners. While an overwhelming 87% of them have considered quitting their jobs to pursue their venture, a staggering 31% admit they simply “don’t know where to start.”

This disconnect highlights a crucial challenge for the Canadian economy: the ambition to innovate and create is abundant, but the path to execution is fraught with obstacles. “Ambition is not the problem in Canada; it's the 'activation' that's broken,” explains Jordan Casey, CEO of Ownr, in the press release. “This data shows that Canadians are ready to work for themselves, but they’re being sidelined by a complex administrative landscape, and a lack of education and support.”

A Nation of Aspiring Bosses

The desire to be one's own boss is not a fleeting trend but a growing national sentiment. The Ownr findings are echoed by broader industry data, including a September 2025 RBC poll that found entrepreneurial ambition in Canada had reached an eight-year high, with 59% of Canadians aspiring to business ownership. That report also noted that 81% of Canadians view entrepreneurship as a viable way to earn a living, embedding it deeply in the national psyche.

This interest is particularly pronounced among certain demographics. A late 2023 report from Toronto Metropolitan University revealed that while 41% of traditionally employed individuals were interested in starting a business, that figure jumped significantly for recent immigrants (63%), Indigenous respondents (62%), and racialized individuals, including 71% of South Asians and 63% of Black respondents.

Yet, this groundswell of intent is struggling to translate into action. Statistics Canada data shows a complex picture of business dynamics. While new business entry rates recovered to pre-pandemic levels in 2021 and 2022, more recent analysis from TD Economics in late 2024 warned of a slowdown in net business creation, driven by higher exit rates and a significant increase in business bankruptcies. This volatile environment likely feeds the apprehension felt by those standing on the sidelines, dreaming of launching but fearing the leap.

Decoding the 'Preparation Anxiety'

The Ownr survey digs into the specific barriers that turn entrepreneurial dreams into sources of anxiety. Topping the list are two deeply personal and practical fears: not feeling financially ready (45%) and the fear of failure (41%).

Financial readiness is a major hurdle. A separate October 2024 study by Xero highlighted a critical financial literacy gap, finding that 43% of small business owners faced fiscal challenges due to a lack of financial understanding. With many entrepreneurs—71% according to the study—relying on personal funds and savings to launch, a firm grasp of cash flow, tax strategy, and long-term planning is essential, yet often lacking. This is compounded by an economic climate of rising costs, which the Business Development Bank of Canada (BDC) identified as a major concern for 75% of businesses.

The fear of failure is equally potent and not unfounded. Historical BDC data indicates that a third of new businesses fail within five years, a statistic that looms large in the minds of prospective founders. This psychological barrier is often as powerful as any financial or logistical one.

Beyond personal fears, navigating Canada's regulatory landscape is a significant deterrent. The Ownr study found 32% of respondents were concerned about compliance, including legal requirements and taxes. In fact, aspiring owners prioritized support for compliance navigation (43%) and business set-up (42%) above all else. This sentiment is strongly validated by the Canadian Federation of Independent Business (CFIB), which has long identified regulatory burden as a primary obstacle. The CFIB has noted that navigating differing rules across provinces is so complex that it deters half of all businesses from expanding within Canada, making it feel easier to trade with the U.S. than between provinces.

Bridging the Divide with Support and Tech

In response to this 'activation gap,' a growing ecosystem of digital tools and support networks is emerging to demystify the startup process. Platforms like Ownr are designed to directly address the administrative paralysis felt by new entrepreneurs. By offering a streamlined, digital-first approach to business registration, incorporation, and managing ongoing compliance documents, these services aim to lower the barrier to entry. They provide a cost-effective alternative to traditional legal routes, potentially saving founders hundreds or even thousands of dollars in initial setup fees.

Beyond private-sector tech solutions, a robust public and non-profit support system exists, though awareness and accessibility remain key challenges. The federal government, through departments like Innovation, Science and Economic Development Canada (ISED), offers a suite of tools and programs. The Canada Small Business Financing Program helps businesses secure loans by sharing risk with lenders, while targeted initiatives like the Black Entrepreneurship Program and the 2SLGBTQI+ Entrepreneurship Program aim to address systemic barriers for underrepresented founders.

Crown corporations like the BDC act as the nation’s dedicated bank for entrepreneurs, providing financing, venture capital, and invaluable advisory services. On the non-profit front, organizations like Futurpreneur Canada offer crucial financing and mentorship to young entrepreneurs aged 18-39. These programs provide not just capital, but the guidance and resources needed to build a viable business plan and navigate early-stage challenges, directly combating the feeling of “not knowing where to start.” Provincial governments in Ontario, British Columbia, Quebec, and across the country also offer their own tailored grants, training programs, and support services, creating a multi-layered but sometimes fragmented support network.

For Canada to fully capitalize on the powerful entrepreneurial spirit running through its population, connecting these aspiring founders with the right tools and resources is paramount. The ambition is clearly present, but it is the practical support in navigating finances, demystifying regulations, and overcoming the initial fear of the unknown that will ultimately determine whether these dreams are launched or left on the drawing board.