Going for growth: Entrepreneurs in Canada doubled down on their scaling ambitions

Entrepreneurs are demonstrating their resiliency through a rapidly evolving economic climate, finding ways to move their business forward by drawing from diverse income sources and doubling down on investments in marketing and sales to sustain and scale their business.

A recent survey from Ownr, an all-in-one management platform for small businesses, revealed that 86 per cent of entrepreneurs surveyed in Canada financed their business using non-revenue related sources such as personal income and savings, funds from another business they run, and loans from financial institutions, the government, and family and friends. In addition, just over half (52 per cent) reported having two or three sources of income, including full-time jobs (20 per cent), part-time jobs (18 per cent) and other personal investments (20 per cent).

“It’s a precarious time for many small business owners in Canada given the evolving macroeconomic environment. Despite this, they are unwavering in their entrepreneurial pursuits by diversifying funding streams to fuel their business growth,” said Jordan Casey, CEO, Ownr. “In fact, our survey found that nearly three quarters of entrepreneurs would be happy to launch their business all over again if given the chance.”

Driving growth: Putting the customer first
More than half of surveyed entrepreneurs said additional funding from non-revenue related sources enabled them to move forward with their business growth and expansion plans. To achieve that growth, the survey revealed an increased focus on customer attraction and retention, driven by a need to differentiate among discretionary spenders. Nearly half of respondents were more likely to explore new products, services, and markets (43 per cent) and strengthen existing customer relationships (41 per cent), versus raising prices (35 per cent).

Among their investments, 35 per cent stated that marketing and sales services generated the most value for their business in 2024. Looking ahead, they want to increase their investment in marketing & sales (41 per cent), including efforts to upskill (44 per cent) in this area.

The solopreneurship struggle
The common challenges of entrepreneurship are amplified for those going it alone.

Almost half of Ownr’s survey respondents (48 per cent) were solopreneurs and solely responsible for the ownership and operation of their businesses. Given their limited time and resources, solopreneurs felt an outsized gap in their ability to develop a long-term plan and navigate the changing market trends impacting their business as their capacity was focused on day-to-day operations and keeping their business afloat in the short-term.

• The planning gap: More solopreneurs stated they had never created a formal business plan (38 per cent), compared to 26 per cent of all entrepreneurs surveyed.
  
• The knowledge gap: Only 39 per cent of solopreneurs felt confident in their knowledge of the impact of interest rates and macroeconomic trends on their business, compared to 50 per cent of all entrepreneurs surveyed.

“Whether you’re a solopreneur or work with a team, a business plan can be an effective framework to anticipate risks, create scenario plans and implement financial and operational contingencies. In doing so, owners can feel less reactive as they adapt to uncertain market conditions,” Casey stated. “Reinforcing the benefit of a business plan, nearly 70 per cent of all entrepreneurs we surveyed who had a business plan were optimistic about their growth in the current economic climate, compared to 48 per cent without a business plan.”

Among its suite of solutions to support entrepreneurs, Ownr offers Blueprint – a comprehensive and step-by-step online business planning tool to simplify the process for time-strapped entrepreneurs who may not know where to start. The tool includes sections around financial planning, which helps small business owners to manage costs, forecast sales, and allocate funding.

“From pandemic to inflation and tariffs, entrepreneurs have remained resilient,” said Casey. “At Ownr, we believe that more than ever, it’s important to equip the backbone of our economy with critical business advice, resources, and solutions in simple, cost-effective ways. That way, entrepreneurs can spend more time bringing their products and services to market and supporting their customers – in Canada, and beyond.”

About the survey
The survey, conducted by RBCx and distributed by Cint and Ownr between January 22, 2025, to February 11, 2025, captures the responses of 1,004 current or future (within the next year) business owners based in Canada over the age of 18. No margin of error can be associated with a non-probability survey, but for comparative purposes, a probability sample of this size would have a margin of error of ± 3 per cent with a 95 per cent confidence level.

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 98,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 19 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.‎

We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/peopleandplanet.

About RBCx
RBCx – the tech and innovation banking arm of the Royal Bank of Canada (RBC) -powers bold ideas, founders, and technology companies. We know building great businesses takes more than just finance, which is why our four pillars – Banking, Capital, Platform, and Ventures – combine to make us the go-to backer of Canadian innovation. We use our deep expertise to support businesses of all sizes and stages, and leverage RBC’s extensive experience, networks, and capital to solve tomorrow’s big problems.

About Ownr
Ownr is on a mission to help make Canadian small business a big deal. With our all-in-one digital platform, everyday entrepreneurs can streamline registration and incorporation, automate paperwork, and maintain ongoing compliance—all without the high legal* fees and confusing jargon. Join over 200,000 Canadians who launched their dream business with Ownr.

Ownr is a venture of RBCx, a division of Royal Bank of Canada. For more information, visit www.ownr.co.

*Ownr does not provide legal, tax, or financial advice.