How to spur entrepreneurship in an aging population
the likelihood of success.
The share of Canadians between the ages of 30 and 39 has already declined 16.6 per cent since the 1980s, and is expected to decline by another 11.4 per cent by the 2040s.
There has also been a corresponding decline in the rate of small business startups, a key measure of entrepreneurship. The rate of small business startups declined by 8.5 per cent when comparing the six years (2001-07) before the Great Recession to the following six years (2008-14), the most recent data available.
And this is not a uniquely Canadian experience. Almost all industrialized countries have seen declines in small business startups. For example, the United States experienced an 18.6 per cent decline over the same period, as did Australia (20.3 per cent) and the United Kingdom (7.5 cent).
It’s also worthwhile noting that the total productivity performance of many Organization for Economic Co-operation and Development (OECD) countries, including Canada, has declined along with the observed fall in entrepreneurship, which highlights the far-reaching effects and implications of less entrepreneurship.