In an insightful interview with CanadianSME Small Business Magazine, Don Ludlow, Vice President of Small Business, Strategy & Partnerships at RBC, shared his thoughts on the surge in entrepreneurial interest across Canada. Based on findings from the 2024 RBC Small Business Poll, Ludlow delves into the diverse pathways Canadians are taking to start their own ventures and the evolving landscape of small business ownership. With a focus on flexibility, meaningful work, and the rise of “blended careers,” he highlights the factors driving this shift and offers advice for aspiring entrepreneurs looking to turn their passions into successful businesses.
Don is the Vice President Small Business, Business Financial Services Strategy and Partnerships at RBC. In this role he leads a team that is responsible for RBC’s small business segment, as well as leading the strategy, partnerships strategy, client experience, CRM and data analytics for Business Financial Services.
Previous roles at RBC have included Regional Vice President Business Financial Services for Southwestern Ontario, National Head of Specialized Sales, Vice President, Commercial Markets, Director of Corporate Strategy and Development and Senior Manager in the Corporate Marketing Department.
Prior to joining RBC in 2001, Don served as an Infantry Officer in the Canadian Army where he led soldiers on a number of domestic and international operations and worked in both staff and training roles. Don has an MBA from McGill University, an MSC from the London School of Economics & Political Science and a BA from the Royal Military College of Canada (Kingston).
Don also believes in giving back to the community and helped co-found the Treble Victor Group (3V) a network of ex-military leaders who work to support one another in their post-service careers, as well as help military leaders transition to new careers. He’s also on the Board of the Ontario Chamber of Commerce and Goodwill Industries (Ontario Great Lakes).
Outside of work Don enjoys playing sports, travelling and skiing with his wife Fiona and son Max.
The RBC Poll shows that more than half of Canadians are considering starting their own business in 2024. What factors do you think are contributing to this surge in entrepreneurial interest?
The rise in entrepreneurial interest can be attributed to several key factors. First, there’s growing recognition of the diverse opportunities in today’s economy, as reflected in the 5% increase in Canadians considering starting their own business. Many are exploring different paths to gradually transition into business ownership, driven by a desire to pursue their passions, gain flexibility, and control their financial futures.
Additionally, the shift towards valuing meaningful work—over financial gain—has become more pronounced, with 93% of respondents prioritizing fulfilling work as a key motivation for entrepreneurship. This change in mindset is encouraging more Canadians to view starting a business as a viable and satisfying career path.
At the same time, the uncertain economic environment has prompted people to supplement or diversify their income streams. In the past, this may have meant taking a part-time job at an existing business. However, today’s digital economy has made entrepreneurship more accessible to a wider demographic, and many have adapted by exploring side hustles, freelance and contract work. This gradual transition into entrepreneurship reflects the growing model of “blended careers,” where individuals balance both traditional employment and entrepreneurial pursuits.
What are the different pathways that Canadians are taking to enter the world of entrepreneurship?
Canadians are taking various routes to entrepreneurship, often starting with gradual steps. According to the RBC Small Business Poll, 31% are looking for ways to monetize their passion projects or hobbies. About 28% are exploring ways to earn extra income on the side of their regular jobs. Additionally, 19% are managing side jobs to boost their income as needed, and 15% have side hustles they’re serious about turning into full-time businesses. Another 13% are considering a shift from full-time work to freelance or contract roles, though they haven’t made the leap yet. Finally, 8% are testing business ideas separate from their current jobs.
These findings illustrate how the pathway to business ownership is much more diverse than it used to be, and the ability to start something to supplement income or test out as a side hustle is allowing Canadians to make the jump thoughtfully and gradually to full-time entrepreneurship.
What do these findings say about the future of Canada’s small business landscape?
Entrepreneurial spirit is alive and well among Canadians. Our 2024 RBC Small Business survey found that over half of Canadians have started or are considering starting their own business in 2024.
With Canadians increasingly prioritizing flexibility and meaningful work, it’s no surprise that many are eying entrepreneurship as a way to chart their own path. The poll highlights that a substantial proportion of small business owners launched their ventures to achieve more flexibility, with 46% stating they wanted to spend more time at home with their children, and 40% aiming to care for aging parents.
Gen Z and Millennials are particularly drawn to the autonomy and sense of purpose offered by entrepreneurship, indicating a steady pipeline of aspiring entrepreneurs for the generations to come. 60 per cent of Gen Z respondents and 46% per cent of Millennials cited meaningful work as a motivation for owning their own business, compared to 44% of respondents across all ages.
Though interest in entrepreneurship is strong, Canadians are aware of its potential challenges, and many are taking a thoughtful and gradual approach to full-time business ownership. To ensure that entrepreneurial aspirations translate to a growing number of viable small businesses, Canadians will need continued support to acquire the skills and resources they need to make their ideas happen.
We know from the survey that there are many aspiring entrepreneurs out there. What advice do you have for these individuals looking to turn their passions or side hustles into successful businesses?
Start by developing a solid business plan. The process will help you think through your idea and clarify both your personal motivations and business purpose and objectives. Discuss that plan with people you respect and trust, like mentors, family and friends, and other professionals in your network.
Use that plan to have a conversation with a business advisor at your financial institution. Working with them early on to assess your financial needs allow you to develop tailored solutions together. Proactively approach the bank with a plan demonstrates that you’ve thoroughly considered your business strategy, building their confidence in your venture. You can also consider contacting non-profits such as Futurpreneur to see what support they could offer.
Explore digital and e-commerce solutions to streamline operations, and save time on time and costs. As an entrepreneur, you often juggle many responsibilities. Digital solutions can make it easier to manage back-office activities like invoicing, payroll, and cash management. For example, Moneris can help you set up convenient payment options for your customers whether in-store, online, or on-the-go.
At RBC, we offer tailored advice and resources that address the unique challenges faced by current and aspiring entrepreneurs. Our digital tools and platforms are designed to simplify many aspects of business ownership, while our advisors provide personalized guidance to help aspiring entrepreneurs navigate the transition from side hustle to a full-time venture. We also support established entrepreneurs in the growth and success of their business. Entrepreneurs can also access many of our tools, resources and business advice at RBC’s Starting a Business hub online.
