In a recent interview with CanadianSME Small Business Magazine, Ara Kharazian, the Research & Data Lead at Square, offered key insights into the evolving landscape of Canadian entrepreneurship. Ara highlighted the role of social media and young influencers in inspiring a new generation of entrepreneurs, particularly in moving beyond traditional 9-to-5 jobs. He also touched on the importance of technology, noting that 79% of young entrepreneurs see it as essential for starting a business. The discussion delved into the financial challenges faced by young business owners, with 86% feeling ill-equipped to manage at least one financial task, and explored the increasing trend of businesses as side hustles. Ara’s thoughts shed light on how these factors could impact future employment patterns and the entrepreneurial environment in Canada.
Ara Kharazian is the Research and Data Lead at Square. His insights on consumer, labour, and business trends have been cited in the New York Times, Bloomberg, and the Australian Financial Review. Prior to joining Square, he was an economic consultant at Cornerstone Research, where he worked on matters in antitrust, consumer pricing, and market manipulation. Ara received a degree in economics from Tufts University. Born in 1997, he is also Gen Z.
How have social media and young influencers reshaped traditional entrepreneurship, and what role do influencers play in inspiring young Canadians to start a business?
Square released a new report focused on Gen Z entrepreneurs in Canada, and one interesting finding was the impact of social media in not just enabling entrepreneurship but actually encouraging young people to start businesses. In fact, 41% of respondents said that inspiration from social media and influencers were a major reason why they started their businesses. We’ve seen how social media allows entrepreneurs to share their successes and promote their businesses with large audiences, and I think this exposure has helped plant the entrepreneurial seed for many younger Canadians.
What do alternative paths to success instead of a 9-5 job look like for Gen Z, and how are they shaping the future of work in Canada?
Most people, but I think young people especially, want more control of their hours and working schedules, which means exploring options outside the typical 9-5 work construct. We found that work-life balance is a major motivator for both Canadian men and women in this age group, and part of finding that balance means having the flexibility to work where and when they want. I think most people want flexibility at work, but there’s this perception out there that older generations are more willing to accept the status quo and tie their success to securing a corporate job. The expectations for a fulfilling career are very different for most young people. That’s why 77% of respondents reported thinking Gen Z is more open to alternative paths to success than previous generations.
What impact do the gender differences in entrepreneurial role models and definitions of success have on the entrepreneurial landscape?
The role models for Gen Z are really interesting. We found the most popular role model for Canadian men is Elon Musk (34%). While he’s certainly made controversial decisions, he’s also had a lot of success, and is seen as a disruptor and innovator in space and EV-tech, which I think many young people feel inspired by. On the flip side, the most popular entrepreneurship role models for women were Selena Gomez (25%) and Rihanna (18%), both of whom have made their marks in the entertainment industry and are now leading successful business ventures in other sectors.
Which specific tools or innovations have been most impactful for Gen Z entrepreneurs in Canada, considering that 79% of respondents consider technology essential for starting a business?
Businesses in Canada are extremely diverse and come in all shapes and sizes. One common factor is how technology has now become an essential part of starting and running a business. At Square, we work hard to offer entrepreneurs an ecosystem of tools to help them run their businesses in an easy and seamless way while helping them create new revenue streams. With such a high number of Gen Z businesses being side-hustles, one that certainly stands out is our e-commerce solution, which allows sellers to set up their websites in minutes and incorporates every tool needed to enable them to make a sale at any time, from anywhere.
What support or resources should be provided to assist young entrepreneurs in overcoming financial hurdles, considering that 86% of respondents feel ill-equipped to handle at least one finance-related task?
There are so many tasks that go into operating a business, and most of them have nothing to do with the actual products or services being offered. One major motivator for Gen Z when it comes to starting a business is that they want to follow their passions, but in addition to pursuing creative endeavors, business owners need to pay bills, create and send invoices, manage inventory, market their products or services, schedule employees… The list goes on. At Square, we’re constantly evaluating our sellers’ needs and adding new integrated products and services to make it as easy as possible for them to run, adapt and grow their businesses, ultimately freeing them up to do what they do best.
How does the shift towards considering businesses as side hustles, as shown in the report, reflect changes in the Canadian economy, and what implications might it have for future entrepreneurial endeavors and employment patterns in Canada?
A side hustle isn’t the endgame for Gen Z entrepreneurs. We found that the majority plan to continue growing their businesses and want to start additional ventures too. This means they’ll be looking for a business solutions provider that fits a broad range of needs into the future, not just one that works today.
These long-term aspirations are important to the Canadian economy. Today, 98% of businesses in Canada are small businesses employing close to 10 million people, which is more than two thirds of the workforce, and entrepreneurship is critical for any economy. In good times, entrepreneurship allows individuals to take risks, start new businesses, and innovate. In bad times, entrepreneurship can be a lifeline to a laid-off worker. That experimental startup might be one of the few places hiring while more-established businesses rethink their operations and cut staff. In general, I think the term “side hustle” can often get a rap because it may be interpreted as businesses that likely won’t grow to overtake more established companies when the truth of the matter is: We all have to start somewhere.
