“Moreover, the financial risks typically associated with launching a traditional company — payroll, leaseholds, inventory, and capital expenditures — are essentially non-existent in the current economy.”

On the investor side, Chris Arsenault ofiNovia Capital says his fund has invested in more than 10 Canadian tech companies in the past year, among them Top Hat Monocle, and several pre-revenue companies.

“Entrepreneurship is at its best across Canada, and we are seeing ambition now being matched by execution,” Arsenault said. “I’m driven by the high level of motivation and connectivity our entrepreneurs are showing. Feels like nothing can stop them. If we don’t fund them, then a U.S. VC firm will.”

Mark MacLeod, a partner at RealVentures, says access to funding, both via traditional avenues or through crowdfunding, is one reason it’s a great time to start a business. The fact that Canada has one of the highest Facebook penetration rates in the world means Canadian businesses can easily find local customers online, he said. (There are 18 million monthly active Facebook users in Canada, while Canada is 5th globally in terms of having the most small business professionals on LinkedIn.) MacLeod said there are additional examples of million-dollar business leaders, both in the offline and online space, that new entrepreneurs can learn from.

“Whether it’s Ryan Holmes from Hootsuite publicly stating his desire to build a $1-billion company or Harry Rosen building a globally respected fashion brand, we have great role models to learn from,” MacLeod said.

There will always be challenges to starting a small business in Canada, with an investment scene that isn’t as active as it is in Silicon Valley and a constant need for development talent. But the experts — investors and entrepreneurs — agree the barrier to entry has never been lower.

Erin Bury is managing editor at BetaKit, an emerging tech publication launched by Sprouter.com. If you have emerging tech news get in touch at erin@betakit.com.

Source:  Financial Post