“Canada’s ideal environment and proactive frame of mind are setting the standard for entrepreneurial culture. In fact, 88% of survey respondents agree these qualities are putting the country on the map as a startup paradise”
- Colleen McMorrow, Ernst & Young’s Entrepreneurial Services Leader in Canada.
Nothing wrong with a bullish attitude but McMorrow is clearly guilty of being far too optimistic. Yes, there is an increasingly active entrepreneur community, more financing (particularly seed capital) and an ecosystem of suppliers. But Canada’s is far from being a “startup paradise” if, in fact, a startup paradise exists anywhere.
What’s interesting about McMorrow’s bullishness is how a report recently issued by Ernst & Young suggests the entrepreneurial landscape has two major weaknesses:
1. Access to fund from bank loans and venture capital is seen to have deteriorated.
2. Less mature VC/PE (venture capital/private equity) market than the U.S.
Without enough capital to support the development of ideas and jump-start growth, it is difficult, if not impossible, for Canada to become a “startup paradise”.
As I’ve mentioned in previous posts, there’s a lot of positive things happening within the start-up community, even if things do appear to be getting dangerously frothy.
The market is more active and exciting than it’s been in years, and, as important, there is a growing group of seasoned entrepreneurs who can walk the walk rather than talk the talk.
It’s all good but there is plenty of room for improvement so that perhaps one day Canada can become a startup paradise.
For more, TechVibes has more thoughts.