I was reading an article in The Maple by Adam D. K. King* commenting on the decline in self employment in the Canadian economy. Though it was a well written piece, I found myself disagreeing with his argument that this was, in his interpretation, a good thing, being evidence that the economy was improving.
Whilst it is undoubtedly true that redundancy is the catalyst of many a small business, I did not feel that the article reflected the full value of owning one’s own business. Establishing a business may be a response to challenging circumstances, but it can also be fuelled by the spirit of independence, the desire to stand on one’s own two feet, and the desire to prove to oneself that it can be done. These thoughts were mulling around my head as I was driving along, when I turned a corner and spied a little girl selling lemonade from a roadside lemonade stand. I drove by thinking that was very enterprising. Sometime later, driving round the same corner, I saw the same young lady plying her wares…feeling emboldened I stopped the car and walked over.
I had a chat with her and her father and learned she was in the business of selling lemonade to fund her interest in the visual arts. And she was learning a life lesson at a young age regarding the bank of mom and dad. I couldn’t help thinking this should be encouraged and determined to write an article encouraging those sitting on the fence of starting a small business to take proper advice and give it a try.
As we all know, small business is the way to make millions just by driving around in a swanky tax deductible car, from elegant restaurant to elegant restaurant, eating tax deductible lunches whilst one’s employees do all the work. If you believe that you will believe anything. Small business, especially at the early stages, is very difficult and one will find oneself wearing many hats, working very long hours and just scraping by financially, as you patiently count the days till your invoices are due for payment. Then you will discover that some of your clients will not be able to pay you on time, but you will still have to meet your liabilities, most particularly to your staff who need to pay their mortgages and feed their families. You will encounter the most ridiculous excuses for not being paid, along the lines of “my dog ate my homework.” Or “the cheque’s in the post,” well it might be, but Canada Post might then go on strike. One client refused to pay us because we hadn’t bought anything from them! Welcome to cash flow forecasting. You may well be excellent at whatever it is you choose to do, but actually getting paid can be a major problem. Adam King does, quite rightly, note that a lot of self-employed people work for very modest rewards and that is certainly true, particularly as a business is being built. But I would like to suggest that financial reward isn’t the sole, or even main reason to consider running your own business. If you can succeed it is very satisfying to be the master of your own destiny. However there is the danger of proving the maxim, “work expands to fill the time available to it,” and to become in effect, a slave to one’s own business. You must make time to occasionally smell the roses.
To succeed you need a new product, service or idea, or to be able to deliver an existing product or service better than anyone else. If you have a new service, expect to be copied quickly, unless your product or service has legal protections such as copyrights, trademarks or patents. If you have created a better mousetrap, people will beat a path to your door, but potential competitors will be watching. Being backed by more money than you ever imagined you might need is important, as borrowing money for business purposes is expensive. Plenty of sources of finance will be open to you, but despite your solid fiscal reputation, once the word ‘business’ is mentioned, suddenly you are defined as high risk and all offers of credit will come wrapped in high interest rates. Probably, the most economical way of launching a business is using part of a line of credit on your house. But there is then the obvious danger, that should things not work out, you may imperil your house. And it’s salutary to recall that the rate of new business failures in the first five years is high.
To establish a new business is quite simple, a visit to Service Canada will furnish a business number and prior to that you should decide if the business is a sole proprietorship or a partnership. If the latter, you should set something down on paper as to who does what, to avoid arguments later on. Even at this early stage, it would be wise to set out steps to dissolve the partnership, should it ever become necessary. Alternatively, you can dive right in and form a corporation which can have tax advantages, though you will need an accountant to deliver them and pay at least two thousand dollars to set the corporation up, and for that privilege you will pay more for accounting services because you are a corporation. So, swings and roundabouts to consider. Forming a corporation establishes your business as a legal entity distinct from yourself, giving your assets protection should the business fail. As a sole trader or a partnership, your assets are ripe for the picking if things go awry. Although you are not obliged to register for HST right off the bat, I would recommend that you do, as this will allow you to discount the HST you pay in the course of doing business from the HST you collect. It has become easier to be your own bookkeeper, but I would strongly recommend engaging a professional, if you ever want an evening off. Frequently, you will come home to a brown envelope from the government which will require time consuming attention. You can waste hours trying to call them back, when your time would better spent doing what you do well. And you need someone other than yourself to chase up recalcitrant customers with outstanding invoices.
Your business may need premises which will require paying rent and utilities: then there could be stock and staff to consider. Your location may need redecorating, but even a quick coat of paint will cost money, and you may need shelving or display cases and fixtures, which are not free, even if obtained second hand. Employing people is a risky business, they might be unreliable, even if for valid reasons such as sick children, they may not be trustworthy and steal time, product, or money from you. There is a whole raft of legislation concerning employing people and you would be ill advised to do that without legal advice. An alternative is to engage independent contractors, but this too, is fraught with legal pitfalls, and they will be juggling multiple responsibilities and may not be able to serve your needs when you wish. Legal advice is expensive but can save you much more than it costs. Whichever route you take you will not find staff who are as committed to your business as you: they will require coffee breaks, lunch, holidays, time off for doctors’ and dentists’ visits and to go home at four or five o’clock each day. Therefore, a home based business run from a laptop on your dining table, with stock stored in your garage is much to be desired. This allows a business to function with the most modest start up cost and offers some tax benefits for using your home as a place of business.
Small businesses make up over ninety-eight percent of businesses in Canada and that is a truly remarkable statistic given that there are very little incentives to encourage people on that path. Indeed, one of the most appropriate vehicles which ran for twenty-five years, the Ontario Self-Employment Benefit was cancelled. This was a program supervised by Trenval whereby those in receipt of E I benefits could transition to self-employment retaining benefits for a year whilst receiving training and mentorship to get the new business off the ground. Amber Darling of Trenval recommends, “This program needs to be recycled and offered again, leading the way for innovation and self-reliance in a challenging landscape for all who are struggling to make ends meet.” To that I would like to see added to the educational system, classes promoting entrepreneurship and fostering the desirability of running one’s own enterprise. As a populace we need to become much more self-reliant and willing to take carefully calculated risks.
*Declining Self-Employment Rates Are A Good Sign For Workers. A. D. K. King readthemaple.com
The Power of Community in Youth Entrepreneurship: My Journey by Taylor Russett
When I look back at why I ventured into the world of entrepreneurship at a young age, I realize that while my parents and grandparents weren’t business owners, they were undeniably hard workers. More importantly, they were deeply rooted in the value of community. They taught me that success comes from hard work, but also that giving back and being a valuable member of your community is just as important. Whether it was charity work in high school, baking cookies with my mother for our neighbours every Christmas, or mowing lawns in my neighbourhood for my first job, each task was instilled with a strong sense of community spirit.
That’s why I think I entered the world of entrepreneurship. For me, the essence of business isn’t just about making profits—it’s about being part of the social fabric that holds a town, city, or province together. Community-driven businesses are the true backbone of any region. Whether it’s the local coffee shop where colleagues meet, the theatre where friends gather, or the family restaurant where connections deepen, these small businesses bring us together in ways we often overlook.
Growing up, I was that high-achieving student who wanted to do everything: student council, social justice groups, volleyball, yearbook, photography club—I was always striving to reach beyond my comfort zone. The desire to push my limits and achieve things outside my box of possibilities has been a constant driving force in my life. That’s what entrepreneurship is to me: a continual process of reaching beyond, of trying new things, of facing challenges head-on, no matter how daunting.
If I were to offer advice to young entrepreneurs, it would be this: entrepreneurship is not easy, and it’s not for everyone. But that’s exactly what makes it exciting and rewarding. You’ll face everything from three am alarm company calls to staffing crises, supply chain issues, and startup troubles. These are the inevitable road bumps on the deeply fulfilling journey called entrepreneurship. They are challenges that shape you, that force you to grow, and ultimately, make every success taste a little sweeter.
Now, picture an Ontario or Belleville powered by small businesses, where the care and compassion we show for one another brings us closer. Imagine the stronger connections, the mutual support, and the sense of belonging we could foster. This is the future I envision—a future where community and entrepreneurship go hand in hand, creating not just businesses, but networks of care and collaboration that elevate us all.
It’s true: entrepreneurship is not just about individual success. It’s about weaving a richer, more connected social fabric. And as a young entrepreneur, I believe we have the power to build a future where community-driven businesses are the beating heart of our society.
Taylor Russett is a serial entrepreneur owning a photography business, the Grind and Vine Cafe in Trenton, and Lafferty’s Menswear in Belleville. Additionally, he is on the board of Trenval and heading up the United Way’s annual fundraising campaign.
