More than half of Canadian business owners surveyed by Tangerine Bank and PwC Canada say they do not identify with the traditional definition of an entrepreneur, suggesting a gap between how business ownership is evolving and the way entrepreneurs are supported by financial institutions.
The Modern Entrepreneur Report found that 52 per cent of 552 Canadian entrepreneurs surveyed do not consider the traditional label an accurate description of themselves, despite building businesses, generating income and contributing to their communities.
Changing definition of entrepreneurship
The report says more Canadians are building businesses through independent work, multiple income streams, digital platforms and lean operations, while traditional approaches to recognizing and supporting entrepreneurs may not reflect those models.
The research also found that only half of respondents said their bank views them as a business client rather than an individual customer. Statistics Canada data cited in the report shows non-employer businesses have grown by 24 per cent since 2020, compared with four per cent growth among employer businesses.
"In an environment where Canada is focused on where the next wave of opportunity will come from, we can't afford to think about entrepreneurship through yesterday's lens," says Terri-Lee Weeks, President and CEO of Tangerine. "The modern entrepreneur is building differently, growing differently and defining success differently. The opportunity is not simply to recognize that change, but to respond with effective solutions so we can support them to drive economic momentum."
The survey found that 73 per cent of respondents were proud of their business's contribution to Canada, while 75 per cent said their business has a positive impact locally. The report says those results indicate entrepreneurs can contribute to economic activity and innovation before reaching conventional measures of business scale.
At the same time, 93 per cent said they were proud of the business they had built, but only 45 per cent expected their businesses to grow. Long-term financial security was identified as a primary motivation by 22 per cent of respondents.
The report says the findings point to a broader range of motivations among business owners, including freedom, flexibility and personal fulfilment, rather than measures such as revenue or employee headcount.
Demand for broader support
The research also found that 87 per cent of respondents value advice from people who have built businesses themselves, highlighting the importance of community and connections alongside financial services, according to the report.
"Across every sector we serve, we see a common challenge emerging: customers are evolving faster than the models built to serve them – and entrepreneurship is no exception," says Yair Weisblum, National Sector Leader, Banking and Capital Markets, PwC Canada. "The organizations that recognize entrepreneurial potential early on, understand customers more holistically, and reduce complexity rather than add to it, will be best positioned to earn the trust of Canada's modern entrepreneurs."
The report comes as Tangerine prepares to launch Tangerine Business, which the bank says will be designed to provide more flexible and inclusive services for entrepreneurs operating outside traditional business models.