Working for a Big Four, National, or Mid-sized firm and in Industry are the avenues most often discussed as the options for obtaining a CPA designation. As a result, self-employment is overlooked in the discussion when ironically in Canada self-employment according to Stats Canada (1) has increased by 19% since 2001.
In 2011, there were 385,100 small business operating in BC, 82% of which had less than five employees. In fact, 98% of all business in BC are small (less than 50 employees) and 56% of these have only one person employed (the owner).(2) Self-employment is on the rise across Canada and specifically in BC. In BC alone, 26,500 new jobs were created through self employment between 2006-2011 and the trend is continuing. “How can this information relate to my future”, you ask??

There are two things to consider when contemplating these facts:

1. Due to the baby-boomers retiring (began in 2010), the succession of businesses over the next 20-30 years is so significant that there are, and will be, opportunities for new people to enter the market as self-employed persons. This is possible through either the outright purchase of an existing business or making financial arrangements to purchase a business through a succession agreement. The latter offers an amazing opportunity for CPA Candidates to enter the labour market as self-employed if they can locate a person nearing retirement that is looking to sell their business, They may even be willing to mentor them through the practical experience component requirement. Whether you believe this option to be remote or not, the numbers for this kind of activity speak for themselves. Recently the Business in Vancouver published an article revealing new financial support was available for new immigrants to purchase businesses due to the increase of this activity right here in BC.

2. Starting a new business is also an option for DAP students and also an option for creating opportunities to meet the criteria for CPA Practical Experience Requirements (PER) as described in Section 2.4 of the CPA Canada National Standards. This track would also require a mentor as described in Sections 2.5.7 and 2.7.2.

For some reading this, you may think that this is way out of your interest area and even outside your comfort zone. Fair enough! But, to those of you that have “entrepreneurial blood flowing in your veins”, this idea may have a certain attraction. I submit this simply to raise the discussion, open the door of possibility, present another option for you and to help you see that your desire to open a new business can be realized sooner than you may have thought!

Good luck!

Russell Garrett

(1) Statistics Canada, CANSIM, table 282-0012 and Catalogue no. 89F0133XIE.
(2) BC 2012 Small Business Profile p1