Growing Your Tech Startup in Canada скачать в хорошем качестве

Growing Your Tech Startup in Canada

Many Canadians think of the US economy as vastly larger and more vibrant - and business friendly - than our own. However for entrepreneurs on either side of the border, when starting or growing a business, it’s critical to have a solid understanding of the real economic landscape. So at the Hatchery we set about aligning official, statistical sources so that the results are comparable between our two economies. At first glance, when we look at employer businesses, large firms in the US seem significantly more important in terms of the share of the private sector workforce. In the United States, large employer businesses account for fully 53.6% of private sector employment, compared to just 38.3% in Canada. That’s almost 40% more! But, the U.S. relies more heavily on the self-employed or ‘solo entrepreneurs’. When we examine the workforce across all sizes of business, the picture changes significantly. Canada has a significantly larger share of the workforce in micro to medium-sized employer businesses at about 58% compared to the US at approximately 44%. In other words, in the US employment is spread evenly between the largest businesses and the other 3, smaller categories of employers. Building large, successful businesses isn’t easy. Perhaps not surprisingly, these very large businesses account for a greater percentage of employment in the US than they do in Canada. We can suggest some likely explanations. First, the much larger market in the US allows greater scaling of retail and wholesale operations. Second, largely private healthcare and post-secondary education sectors account for many more private sector employees than in Canada, where many more of these institutions are classified as belonging to the public sector. Finally, massive global, technology companies are headquartered in the U.S. resulting in a concentration of head offices of these global American firms. But buying into the dream of creating a startup with a billion dollar valuation by following the Silicon Valley playbook - is kinda like buying a lottery ticket. t turns out that it may actually be easier to scale a small technology start-up in Canada. Statistically as we’ve seen, SMEs in Canada are a little larger than their cousins in the US. Why is that? Not only are Canada’s small business corporate tax rates the lowest in the G7 because of our small business deduction, but we have significant cash incentives for doing experimental development in Canada. What’s more, salaries for engineers and software developers in Canada are lower (only about 70% to 85% as high) than their counterparts in the US - and that’s before factoring in cash incentives for R&D. Scaling a startup through the various stages of growth isn’t easy. While some business consultants can provide you with a ‘playbook’ to guide you through all the various funding rounds, more than 80% of startups that exit successfully through an IPO or an acquisition, do it without any VC money - at all. At the Hatchery we think it makes more sense just to stay flexible. In case no one ever told you - unicorns are mythical creatures!