Nearly Half Of Canadian Entrepreneurs Have Been Rejected By An Investor: Intuit

Getting funded is a crucial step in scaling up a business. Intuit Canada’s newest study shows that nearly half (44 per cent) of Canadian entrepreneurs have been rejected by an investor.

Why are so many entrepreneurs struggling to secure the funding they need? Canadian entrepreneurs are approaching an investment pitch without a clear picture of where they stand, and hurting their chances as a result – astonishingly, one in 10 entrepreneurs seeking investment don’t plan to prepare anything for their investment pitch.

Additional survey findings include:

  • Sixty-one per cent of entrepreneurs spent less than 12 hours preparing for their pitch. That’s less time spent than planning a vacation.
  • Sixty-seven per cent of Canadian entrepreneurs are unsure of exactly what investors are looking for.
  • Thirty-five per cent do not plan to prepare a business plan 68 per cent of SBOs do not plan to create a cash flow statement for their pitch.
  • Many Canadian entrepreneurs entered an investment pitch with no balance sheet (38 per cent) or business plan (23 per cent).
  • Entrepreneurs face rejection by pitching without a long-term strategy. The primary reason those rejected for funding didn’t receive the investment they hoped for was because they didn’t have a plan to profitability.
  • Canadian entrepreneurs aren’t just quick to jump the gun when it comes to funding – A previous Intuit study showed that 69 per cent launched their business within six months and 62 per cent started up without a business plan.

To bridge this gap, Intuit is collaborating with Startup Canada, SociaLIGHT, Launch Academy, Notman House and the DMZ at Ryerson University to educate, train and enable up to 10,000 startups across Canada as part of its new “Startup Foundations” initiative. Through live events, training sessions and online workshops, participants will learn to improve their basic financial management skills, make better decisions and ultimately fuel business success. 

SURVEY METHODOLOGY

The data was collected through an online survey conducted through the Angus Reid Forum panel. The research was facilitated by MARU/Vision Critical Research & Consulting. The survey was conducted between September 9th and September 19th, 2016. To enable cross-tabulation and analysis amongst demographic subgroups, the sample size is n=507 Canadian small businesses. The margin of error for the study is estimated to be +/- 4.4%.

 

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