The “valley of death” is what is nicknamed, in the entrepreneurial world, the critical period in which a large proportion of start-up in Quebec. To help entrepreneurs get through this difficult period, a recent survey by the University of Quebec at Trois-Rivières helped determine the main challenges faced by those who start their business.
“We know that young companies are generally the engine of innovation, and we need [de cette innovation] to create the economy of 2030 in which most jobs do not yet exist,” observes Pierre Graff, President and CEO of the Regroupement des jeunes chambres de commerce du Québec (RJCCQ).
However, the path is often strewn with pitfalls for young entrepreneurs. “People who get started hit a wall very quickly,” notes Graff. There are big challenges specific to accelerating and growing companies to get through this extremely difficult two to five year period, where funding and skill development require something totally different. It is important to have an overall picture of the situation, because our action will depend on this input in the field. »
To find out about the challenges specific to starting a business in the province, UQTR researchers interviewed hundreds of entrepreneurs through surveys and focus groups. The study, published last December, was carried out in collaboration with the École des entrepreneurs du Québec and the RJCCQ. The report identified six key challenges, including financial and legal management, business development and entrepreneurial career management.
But above all, the report has made it possible to shed light or speak openly about emerging challenges for entrepreneurs, be it the management of human capital in a context of labor shortage, but also the management of psychological health and digital technologies.
Difficult early years for mental health
Taking care of your mental health has always been a challenge for young entrepreneurs, but before the pandemic, the subject was always taboo, according to Étienne St-Jean, professor at UQTR’s School of Management and co-author of the report. “We know that it is particularly difficult in the first years, which bring a lot of stress that it is important to manage, he says. Often entrepreneurs who have experienced failures, it leads to divorces, depressions, things like that. »
Despite everything, the management of mental health has long been in the blind spot of training and support for young entrepreneurs, according to Mr. St-Jean. The latter observes, however, that the pandemic has made it possible to break the silence surrounding the importance of psychological well-being at work.
“It has become a little more legitimate not to feel well, to have an overload and to be able to talk about it, and to develop an adapted service offer,” he says. It’s as if it gave even more weight and relevance to what we had already found before the pandemic, because there, it was exacerbated. There’s a whole lot of thinking to be done, when supporting an entrepreneur, to ensure that he’s in balance. »
Digital transition
In addition to mental health, managing digital technologies is another element that is becoming increasingly important for young entrepreneurs, especially since the start of the pandemic.
“Companies had to quickly move to offering products and services online, to transactional sites, to managing social media and so on,” observes Mr. St-Jean. Companies must reflect on the issue of digital technologies and often even integrate them into their business model. Many times, entrepreneurs are a little helpless, whether it’s deciding what type of service they really need or which supplier would be right for them. »
“It came to confirm that the digital transition is still very very late in Quebec, adds Mr. Graff. So it was an opportunity for us to go and try to find the training that was offered and to develop it to make it accessible to young chambers of commerce and their members to fill this gap. »
Étienne St-Jean and Pierre Graff believe that this new portrait will notably make it possible to review the support offered to emerging entrepreneurs. “Funding and skills development is something totally different,” says Graff.