Canada's Self-Employment Surge Could Add $24B to GDP, BDC Study Finds
Event summary
- Self-employment in Canada rebounded in 2024, adding 70,000 new solo operators, bringing the total to 2 million.
- Nearly 40% of self-employed Canadians plan to hire or invest in the next year, a pivotal transition from solo to employer status.
- Hiring a first employee could boost GDP by up to $24 billion annually, with 213,000 potential transitions from solo to employer businesses.
- 73% of self-employed Canadians rely on personal funds, highlighting financing barriers to scaling.
- Targeted support could increase new business survival rates by up to 20 percentage points within three to five years.
The big picture
Canada's self-employment resurgence represents a strategic opportunity to reverse declining entrepreneurship levels and bolster economic growth. The transition from solo operators to employer businesses is critical, as it not only adds to GDP but also strengthens the country's business base amid normal micro-business churn. The study underscores the importance of targeted support to improve survival rates and unlock productivity gains, particularly in an environment where financing remains a significant barrier.
What we're watching
- Scaling Momentum
- Whether accessible AI tools can accelerate the transition from solo operators to employer businesses.
- Financing Access
- How policy interventions can address the 73% of self-employed Canadians relying on personal funds.
- Economic Resilience
- The pace at which self-employment can buffer labor market fluctuations and drive wealth creation.
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