Quebec is witnessing a notable surge in entrepreneurial activity, wiht data revealing over 27% of residents are considering starting a business within the next three years-a figure not seen since 2013. This heightened ambition comes as the province’s small and medium-sized enterprise sector navigates both opportunities and challenges, including a recent increase in business closures alongside a growing number of established ventures. New research from the Université du Québec à Trois-Rivières offers insight into the forces driving this trend and the evolving strategies of quebec’s business owners.
Quebec is experiencing a surge in entrepreneurial ambition, with over 27% of residents indicating plans to start a business within the next three years – the highest rate recorded since 2013. This growing interest in entrepreneurship reflects a broader trend of individuals seeking greater control over their careers and exploring new economic opportunities.
Recent data from the Université du Québec à Trois-Rivières (UQTR) Small and Medium-Sized Enterprise Research Institute reveals that nearly 20% of the Quebec population has already taken concrete steps toward launching a venture. This places Quebec second globally among comparable economies in terms of entrepreneurial activity.
According to Étienne St-Jean, a professor at UQTR and co-author of the report, the findings present several encouraging signals. “Entrepreneurs have increasing confidence that their efforts to create a business will be successful,” he said, noting that approximately 58% of those taking entrepreneurial steps are currently maintaining full-time employment. This percentage has been steadily declining in recent years, suggesting a growing belief in the viability of new ventures.
The report also highlights continued interest in business acquisition, with a significant number of Quebecers exploring opportunities to purchase existing companies. While this activity has seen a slight decrease, the researcher doesn’t view it as a cause for concern. He believes the influx of new entrepreneurs will be sufficient to absorb businesses as they come up for sale.
“Several new entrepreneurs discover after attempting to launch a new business that they lack the necessary funding to achieve profitability,” St-Jean explained. “Some then prefer to acquire an established business because this type of acquisition is easier to finance.”
However, the entrepreneurial landscape isn’t without its challenges. In 2024, 5.7% of active businesses in Quebec closed their doors – the highest proportion in a decade. This figure underscores the inherent risks associated with starting and running a business, even in a thriving entrepreneurial environment.
Despite the increase in closures, the report points to a positive counter-trend: 7.4% of businesses reached an “established” stage, indicating a healthy rate of long-term success and potentially offsetting the impact of business failures. This suggests that while some ventures may not survive, a significant portion are achieving sustainability and contributing to the Quebec economy.
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Business acquisition efforts, aimed at buying an already established company, remain frequent, although slightly down.
The researcher does not see this as an alarming signal.
He believes that the number of emerging entrepreneurs, which is increasing, will be sufficient to take over the businesses that will soon be put up for sale.
“Several new entrepreneurs discover after having tried to launch a new business that they do not have the financial capacity to make it profitable,” he explains.
“Some then prefer to buy an established business because this type of acquisition is easier to finance.”
Business closures, however, have marred the entrepreneurial record.
In 2024, 5.7% of businesses that were active in Quebec the previous year closed.
- This was the highest proportion in 10 years.
In contrast, the researcher points out, 7.4% of businesses reached a stage of “established business”, a positive sign that, according to him, compensates for the closures.
