Picture a Canadian entrepreneur, and there’s a good chance that image is already out of date.
That’s according to the Modern Entrepreneur Report, a new study from Tangerine Bank and PwC Canada. Over half of the 552 Canadian business owners surveyed for the report said the traditional definition of ‘entrepreneur’ does not quite fit them: many are working solo, building businesses alongside other jobs, and keeping teams small.
The ways these entrepreneurs define success are changing, too. Headcount, growth, and exits are becoming less useful as shorthand for what makes entrepreneurship worthwhile, according to the report, with many placing greater value on freedom, flexibility, and the difference they make in their communities.
The report’s findings suggest that the banks serving entrepreneurs have not fully caught up with these changes. Only half of those surveyed feel their bank treats them as a business owner, rather than simply an individual customer.
BetaKit spoke with Jodi Kovitz, Managing Director of Business at Tangerine, about her perspective on how the profile of Canada’s modern entrepreneur is shifting, and where banking still has some catching up to do.
The following Q&A has been edited for brevity and clarity.
Why did Tangerine produce this report?
Entrepreneurship in Canada is changing rapidly, but perceptions of what it means to be an entrepreneur have not always kept pace with the realities of how modern businesses are being built. As Tangerine took a closer look at how we can support the business community, we spoke with entrepreneurs across the country and heard incredible stories from people building businesses in very different ways, often alongside other work, with small teams, or as solo operators.
That’s why we collaborated with PwC Canada to develop the report: to better understand who today’s entrepreneurs are, what motivates them, what challenges they face, and what they need to thrive.
The research confirmed what we were hearing firsthand: entrepreneurship is being redefined, and many entrepreneurs don’t feel fully recognized by the institutions built to serve them. We saw an opportunity to shine a light on this evolving segment and start a broader conversation about how financial institutions can better support entrepreneurs as they build and grow.
What is the most surprising thing you learned when reviewing the report?
What stood out to me most in the report was just how many businesses are thriving without having to scale and expand. Since 2020, businesses without employees have grown by 24 percent, compared to just four percent for employer businesses. This revolution isn’t just being driven by tech startups; it’s being built by freelance graphic designers, content creators, registered massage therapists, and so many more.
These entrepreneurs aren’t necessarily trying to get bigger. While 93 percent of those we surveyed said they are proud of the business that they’ve built, fewer than half (45 percent) expect their businesses to grow, and only 22 percent identified long-term financial security as motivation for starting their business, signaling how important passion and improving their quality of life are as drivers.
More than half of respondents say the traditional label of “entrepreneur” no longer fits them. What do you make of that?
For a long time, entrepreneurship was associated with traditional markers like employees, office space, rapid growth, and scale. While those businesses still exist, many of today’s entrepreneurs are building successful businesses with different goals in mind.
Nearly 40 percent of respondents said greater independence and control were key motivations for starting their business, and many now define success by the freedom, flexibility, and community impact their business creates, not just revenue or headcount. That challenges businesses and financial institutions to look beyond traditional measures of success and take a more holistic view of entrepreneurs.
That’s precisely what we’re doing at Tangerine. We’re building a new model for business banking that recognizes that entrepreneurs need more than a place to manage their money.
Through the Tangerine Business Community, we’re creating opportunities for entrepreneurs to connect, share experiences, and learn from one another, while continuing to build banking experiences informed by their feedback and shaped around their needs.
How does today’s entrepreneur look compared to the traditional archetype?
What we consider a traditional entrepreneur is pretty typical and actually embodies how most large enterprises today got their start: creating a company, scaling it, hiring a team, and eventually selling. What’s changing is that there are now many more paths.
Entrepreneurs may start quietly alongside another job, operate successful businesses without employees, juggle multiple income streams, or intentionally keep their businesses lean. The report calls this “the quiet start” and highlights that entrepreneurship increasingly begins through a series of small steps rather than a single leap. Technology has been a major enabler of this shift. Today’s entrepreneurs have access to tools that allow small teams and solo operators to achieve things that once were only possible for much larger organizations.
When you look at the typical banking experience today, where do you see the biggest friction points for entrepreneurs, and how is Tangerine working to better serve this segment?
Canada’s modern entrepreneurs already wear multiple hats, from operator and marketer to book keeper and technology decision-maker. The last thing they need is unnecessary friction, whether that’s administrative complexity, disconnected banking experiences, or a lack of support as they move their business forward.
At Tangerine, we’re focused on addressing that in two ways: first, by building a streamlined banking experience designed around how entrepreneurs today actually operate; and second, by creating opportunities for entrepreneurs to connect, learn, and grow together.
We know entrepreneurship can feel isolating at times, and the report reinforced the importance of community. While the broader Tangerine Business community creates opportunities for entrepreneurs to connect, share ideas, and learn from one another, we also wanted to bring entrepreneurs directly into the build process. That’s why we established the Tangerine Business Founders Circle, a group of entrepreneurs from across industries who work closely with us to share candid feedback and help shape the future of Tangerine Business.
If the financial sector gets this right, what would real progress look like for businesses over the next few years?
Real progress starts with recognition. The insights from the report make it clear that entrepreneurship has evolved, but many of the systems designed to support entrepreneurs haven’t evolved at the same pace, which tells us there’s still work to do. Progress means creating a financial system that reflects how entrepreneurs build businesses today, not how they built them 20 years ago.
When we get it right, every entrepreneur, whether they’re a creator, driver, consultant, or side-hustler, will be able to work within a system that’s been built with them, not just for them. We’ll know we’ve succeeded when our clients tell us they feel seen, supported, and more confident in how to move their businesses forward.
What has inspired you most personally from listening to the feedback and stories behind the report?
One of the report’s most striking findings was that 81 percent of entrepreneurs surveyed are optimistic about the future of their business. That optimism isn’t about certainty; it’s about having the confidence to keep moving forward despite it.
We saw that spirit come to life through the Tangerine Business Elevator Pitch competition in September. Nearly 200 entrepreneurs stepped forward for the chance to receive $50,000 to help accelerate momentum for their businesses. Their enthusiasm, conviction, and willingness to back themselves reflected exactly what we heard in the report: entrepreneurs remain overwhelmingly optimistic about what’s possible.
Our goal is to keep building Tangerine Business with the needs and input of our clients top of mind, helping entrepreneurs spend less time navigating complexity and more time focused on achieving their goals.
What advice would you share with founders who feel their current banking setup isn’t keeping pace with where their business is heading?
Expect more from the people and institutions that support your business. You shouldn’t have to adapt your way of working to fit into outdated models of support. Look for partners who understand how you’re building your business, who help reduce friction, and who give you confidence and clarity to focus on what matters most.
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What does today’s Canadian entrepreneur look like? Dig into the full Modern Entrepreneur Report from Tangerine and PwC Canada to find out. Get the report here.
Feature image courtesy Tangerine Bank.
The post The Canadian entrepreneur has changed. Has banking kept up? first appeared on BetaKit.