Most of Canada's small businesses start with less than $5,000: study

A new study suggests the majority of Canada's small business owners started out with less than $5,000.

Intuit Canada says its research found that 58 per cent of Canada's small business owners started out with less than $5,000 and 79 per cent started their business with less than $20,000.

The small business accounting software company also says 19 per cent of those surveyed took out a loan or line of credit and 18 per cent drained their savings account when they started out.

Meanwhile, a separate study by the Bank of Montreal (TSX:BMO) says six in 10 small business owners have seen the value of their business grow by an average of 39 per cent over the last five years.

The BMO study also found that 23 per cent of entrepreneurs surveyed valued the legacy it creates for their family and the income it generates.