Incidence of Entrepreneurship in the General Population

Given the importance of entrepreneurial activity as a driver of the economy, it is vital to know, with some accuracy, the number of startups and shut-downs of businesses in any given period. An examination of the many sources of data on business births and deaths in Canada suggests major weaknesses in that information. Differences in definitions, methodology and data bases result in a wide variation in estimates. These data problems are exacerbated by the growth of self-employment and the informal economy. A pilot study of the incidence of entrepreneurship conducted in Vancouver indicates that the number of small businesses in Canada may be quite a bit larger than official estimates. Without accurate information governments, banks and other institutions are not in a position to develop policy and take actions to encourage entrepreneurship.