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Top Resilient Industries in Canada’s Startup Ecosystem

By 18 April 2024May 15th, 2024No Comments

Many Canadian workers (around 1 in 4) are looking to switch jobs next year, often for better pay. It is partly due to the Great Resignation, which has led to more people starting their businesses. There are approximately 101K new businesses created in Canada every year. 

What is working?

Business opportunities like tutoring and bookkeeping can be surprisingly profitable. For those thinking of becoming their boss, it’s important to consider industry costs. 

So, if you are one of those and thinking about – How can startups achieve a high return on investment for their investments? What types of businesses have high profits about their expenses?

An ideal profit margin depends on your business size and type, but a range of 50% to 70% is generally considered adequate.

If you want to become an entrepreneur in Canada, research the market, determine areas with potential, and create a plan to deal with obstacles.  This blog will explore some of the best business ideas to consider in Canada for 2024.

Canada’s Most Profitable Businesses

Technology and Innovation

Canada’s technology sector is experiencing rapid growth, particularly in areas like artificial intelligence (AI), financial technology (FinTech), and educational technology (EdTech). This surge is evident in the success of innovative startups like Wealthsimple, a FinTech company.

Two key factors fueling this growth are the increasing investment in tech startups and the high demand for digital solutions across various sectors.  In 2024, companies such as: 

  • Digital Transformation and Market Impact:  Canadian companies are finding big advantages by embracing digital transformation. Technology helps businesses plan and operate more efficiently, resulting in increased profits. According to a report by KPMG Canada, businesses can utilize technology effectively to grow their businesses.
    Digital tools and data-driven decisions can help companies better understand their customers. As a result, their suppliers and partners will be more efficient, and their processes and systems will be more flexible. It lets them react faster to changes in the market, take advantage of new digital opportunities, and provide excellent customer service.
  • Cloud Computing Adoption: Many Canadian companies use cloud technology to make their services more flexible and effective. A KPMG Canada report shows that many companies are moving to the cloud and that it’s helping them.
  • Cybersecurity Measures: Strong security plans remain crucial as the tech world changes, despite what Canadian companies feel about their cybersecurity. According to KPMG Canada, companies need to keep working on ways to fight cyber threats.
  • Educational and Governmental Support: Canada is a world leader in innovation because many people there have a college degree, and the government puts money into research and development. The Trade Commissioner Service says Canada has strong universities doing research and development and creates policies that help innovation.
  • Workforce and Industry Challenges: The tech industry is growing in Canada, but it’s hard to find people with the right skills to fill the jobs. A report by BDC says it’s difficult for tech companies to hire people and It is slowing down the industry’s growth.

Real Estate: 

The success of real estate businesses is closely tied to Canadian housing prices. While high prices might discourage buyers, they can benefit real estate companies. It is because real estate agents typically earn commissions, so their income rises with property values and sales volume.

Studies show the global real estate market has been growing steadily. In 2023, its value reached $5,339.81 billion, up from $4,961.49 billion in 2022. It represents a strong growth rate of 7.6% per year.

And this trend is expected to continue! Experts predict the real estate industry will be worth an impressive $6,996.55 billion by 2027.

Canada’s Healthcare:

Telehealth on the Rise: 

Canada’s healthcare system is changing quickly, with companies like Maple leading the way in offering medical services remotely. The growth is happening because:

  • More Canadians are getting older, and needing access to care.
  • New technology is making healthcare more efficient.

Mental Health Concerns: 

A recent study by CIHI found a big jump in Canadians reporting mental health problems, from 20% in 2016 to 29% in 2023. There is a link between its increase and stress over money, including difficulty affording housing and food.

One in seven Canadians says that cost prevents them from seeking mental health treatment. There is a need for the healthcare system to make getting mental health care easier and cheaper.

Primary Care: 

Canada’s primary care sector is facing a growing demand driven by several factors. An aging population requires more medical attention, and primary care doctors are often the first point of contact for managing chronic conditions in these patients.  

Furthermore, Canada’s overall population growth, fueled by immigration and temporary residents, puts additional strain on the system. 

Spending on primary care dipped due to fewer in-person visits, and healthcare providers faced financial and operational hurdles. Despite these temporary setbacks, the industry shows signs of recovery with a projected growth of 2.2% in 2024.

E-commerce and Online Retail Store

More and more people are turning to online shopping for their needs. Worldwide online sales are expected to hit $11 trillion in 2024! This trend towards e-commerce is a major force in the global economy, and Canada is no exception.

Canada’s e-commerce sector has seen explosive growth, with companies like Shopify leading the way.

The convenience and safety of online shopping are major reasons why Canadians are increasingly choosing this option. This sector is now a vital part of the Canadian economy.

The future looks bright for e-commerce in Canada, with exciting trends shaping the market:

  • Market Growth and Trends: The selection of things you can buy online in Canada has grown dramatically. Big companies like Amazon, Walmart, and Home Depot have all added a wider variety of products to their online stores.
    It has helped the entire e-commerce market grow even faster. Companies are also using new technology and working together to make it easier and faster to get deliveries to homes, which is contributing to the growth.
  • Revenue and Consumer Behavior: We can expect that the Canadian e-commerce market will continue to grow. Online payments are common among Canadians since most of them have internet access. The COVID-19 pandemic changed how people shop for good, with many buying more things online, especially everyday essentials.
    A new trend called “Omni shopping” is also becoming popular. Omnishoppers shop both online and in stores. It means stores need to come up with plans that make shopping easy no matter how a customer chooses to buy.
  • Omnishopper Influence: Canadian shoppers are changing their habits. They’re increasingly using both online stores and physical stores to make purchases. These “omnishoppers” tend to shop more often and spend more overall. This trend highlights the need for stores to offer a smooth shopping experience whether customers buy online or in person.

Food and Agriculture Industry:

Canada’s food and agriculture industry is a key player in the country’s economy. Companies like Goodfood Market Corp. are showing how the industry is changing to meet people’s desire for healthy and eco-friendly food.

Economic Impact and Growth:

Canadian farmers made more money than ever before in 2023, even though they faced difficulties like dry weather and wars in other countries. It shows how important farming is to Canada’s economy because it can bounce back from problems.

Climate Change and Environmental Initiatives

Canada is working to fight climate change by reducing greenhouse gasses and helping our crucial agricultural sector adapt to a changing climate. It includes programs like the Agricultural Climate Solutions and the Agricultural Clean Technology Program. These programs provide support to farmers for adopting practices that cut emissions and make their farms more resilient to extreme weather events.

Market Development and Trade:

Canada is a major player on the world stage when it comes to selling agricultural products. The country depends heavily on selling its crops and livestock to other countries. To keep this important industry growing, Canada is looking for ways to sell even more products abroad and find new markets for its goods. It can be challenging, as there can be difficulties and benefits to consider in the global marketplace.

Industry Statistics:

Canada’s agricultural industry is a strong contributor to the national economy. Though its share of the Gross Domestic Product (GDP) was 1.6% in 2021, it employs over 2.1 million people. Its significant workforce highlights the industry’s impact beyond its direct contribution. Additionally, agricultural products generated a record revenue of $76.9 billion in 2021, showcasing the sector’s economic strength

Future Prospects: 

There are exciting developments on the horizon for Canada’s food and agriculture industry. The focus will be on becoming more environmentally friendly (sustainable), selling our products to a wider range of countries (export diversification), and reaching new customers (market expansion). These efforts will ensure Canada stays competitive in the global food market.

So, Why Start a Business in Canada?

Canada is a great place to launch your business idea for a few reasons:

  • Easy to Start Up: The World Bank ranks Canada high (6th globally) for how easy it is to get a business going.
  • Strong Economy: Canada has a well-developed economy with good infrastructure, which is helpful for businesses of all sizes.
  • Skilled Workforce: Canada has a lot of well-educated and qualified people, making it easier to find the employees you need.
  • Stable and Fair System: Canada is known for being a low-corruption country with fair legal processes. As a result, you can expect business deals and legal matters to be handled transparently.

Overall, starting a business in Canada offers several advantages for entrepreneurs.

Ready to take the next step? Startup Ecosystem Canada can help you navigate the process and connect you with resources to turn your idea into a reality. Visit Startup Ecosystem Canada to learn more!