Studentpreneurship Not So Hot This Summer Season
BMO Summer Employment Survey: businesses hiring students
- Businesses are investing in their operations, including hiring employees
- Nearly seven in 10 post-secondary students are employed for the summer
- BMO Year of the Entrepreneur Series reveals only one per cent say they are “studentpreneurs”
TORONTO – A new survey released today by BMO Bank of Montreal shows that 69 per cent of post-secondary students have found a summer job as businesses ramp up their hiring for the busy summer season. Only 19 per cent said they were still looking for summer employment.
Those in the Prairies were more likely (53 per cent) to say they have a full-time summer job, compared to only 30 per cent of those in Ontario. The same is true for university students in those areas.
“We are seeing that business owners are increasingly willing to invest in growing their business, including hiring new employees,” said Gail Cocker, Senior Vice-President, Commercial and Treasury Management, BMO Financial Group. "This willingness to spend signals an optimistic outlook by business owners which is good news for the Canadian economy. It is also good news for students looking for employment this summer.”
The survey results show that nearly half (46 per cent) of students surveyed feel that businesses are hiring this summer. By region, this sentiment ranks:
- Atlantic Canada (39 per cent)
- Ontario (41 per cent)
- B.C. (46 per cent)
- Quebec (48 per cent)
- Alberta (57 per cent)
- Manitoba/Saskatchewan (63 per cent)
“These numbers reflect projected stronger growth rates in the provinces, with businesses in the Prairies leading the way,” said Sal Guatieri, Senior Economist, BMO Capital Markets. “Strong demand for resources suggests the Prairie Provinces will lead Canada’s economic recovery this year, as high prices spur investment in the oil and mining industries.”
When it comes to the entrepreneurial spirit among youth, however, the survey found that only one per cent says they will start their own summer business. While there are a number of perks to being a studentpreneur – including being your own boss – there are also considerations about time commitment and being a business owner that young entrepreneurs should keep in mind.
BMO offers tips for studentpreneurs-to-be:
Do your homework – Leverage the wide array of resources and tools to learn what you need to know to set up your business, including setting up a business number, whether or not to incorporate the business and the potential tax implications, including Harmonized Sales Tax.
Weigh the lifestyle pros and cons – Think carefully about why you want to start your own business. While being your own boss can offer some flexibility compared to the corporate world, other sacrifices will need to be made, including longer hours and potentially less cash flow, to ensure success. While many people in this demographic will be enjoying their summer and the freedom of regular hours, running your own business will mean a busy four months.
Put a plan in place – Stress-test your idea and research your marketplace, including what the product and price point will be, who your audience is and what your sales targets will need to be to cover your cost. You may want to consider the market for a seasonal business to fit within your schedule.
Consult an expert – Speak to an accountant and a small business banker. Small business specialists can provide insight into setting up your business, market competition, personal and business finances and how they may change over time.
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