Better support for immigrant entrepreneurs could benefit Canada’s international trade priorities, says new report

Stephen Smith
Published: May 28, 2018

Better government support for immigrant entrepreneurs could benefit Canada’s efforts to diversify international trade and strengthen its economy, a new report by the Conference Board of Canada says.

Given the Canadian government’s growing interest in tapping emerging markets in Asia and South America, the report by the Conference Board of Canada's National Immigration Centre says improving the success rate of immigrant entrepreneurs, especially those engaged in knowledge-based industries, is potentially in Canada’s best interest.

Immigrant entrepreneurs possess valuable education, language skills, foreign business networks and what the report calls “important know-what knowledge” of developing markets, such as emerging trends and consumer preferences.

“Entrepreneurs with international experience (e.g. immigrants) are more likely to do business abroad – and succeed,” the report says. This experience and skill set also puts them at an advantage over their Canadian-born counterparts.

The report points to studies that suggest a 10 per cent increase in Canada’s immigrant population corresponds with a one per cent increase in exports.

“If the latest figures are used, a 10 per cent increase in Canada’s immigrant population of 7.5 million people would correspond to an increase in merchandise exports by $5.5 billion,” the report says.

Immigrant entrepreneurs, however, face a number of unique challenges that their Canadian-born counterparts do not, the report observes, including cultural barriers, weak social and business networks in Canada, difficulty accessing bank loans and financing and a lack of familiarity with available domestic and international business supports.

The challenges are most acute among immigrant entrepreneurs who have been in Canada less than 10 years.

The report cites a 2018 Statistics Canada study that found only 51 per cent of businesses started by recent immigrant entrepreneurs between 2003 and 2009 remained in operation for at least seven years, compared to 58 per cent of those started by Canadian-born entrepreneurs.

To find out if you are eligible to immigrate to Canada as an entrepreneur, fill out a free assessment form.

Four recommendations

The Conference Board of Canada puts forward four key suggestions for improving the success rate of immigrant entrepreneurs and harnessing the potential of these typically educated and internationally connected immigrants for Canada’s trade efforts.

  • Build networks for recent immigrant entrepreneurs;
  • Enhance awareness of domestic and international business supports;
  • Offer more dedicated settlement support programs;
  • Improve access to financing.

1. Build networks for recent immigrant entrepreneurs

  • Government and immigrant-serving organizations could provide more pre-arrival information on starting a business in Canada, including where to find business, settlement, and mentorship support once immigrant entrepreneurs arrive in Canada.
  • Create databases to facilitate networking and mentorship opportunities and compile local business contact information.
  • Make connections with business incubators and investors and get them more involved in recruiting immigrant entrepreneurs.
  • Develop Canada’s business ecosystems in order to attract and support immigrant entrepreneurs.

2. Enhance awareness of Domestic and International Business Supports

  • The federal government, through its Canadian missions, could provide better access to pre-arrival information on the types of business supports offered by Export Development Canada, Business Development Bank of Canada, Global Affairs Canada and Canada’s provincial governments.
  • Promote stakeholder collaboration by working more closely with ethnic business associations, immigrant-serving organizations and ethnic media organizations.
  • Create a one-stop portal to raise awareness about supports targeted to immigrant entrepreneurs.
  • Raise awareness of international free trade agreements and market opportunities.

3. Offer more dedicated settlement support services

  • Work with immigrant settlement organizations to help them develop dedicated services for recent immigrant entrepreneurs and facilitate interaction with Canadian-born and immigrant entrepreneurs.
  • Provide sustained federal funding for settlement support services.
  • Leverage technology such as webinars to keep costs down.

4. Improve access to financing

  • Canada should consider co-funding arrangements that match investments in immigrant businesses by private equity investors.
  • The federal government could provide targeted financing to immigrant entrepreneurs identified as having high growth potential.
  • Improve bank loan process.
  • Raise awareness of existing loan opportunities.

To find out if you are eligible to immigrate to Canada as an entrepreneur, fill out a free assessment form.

© 2018 CICNews All Rights Reserved

Share this article
Share your voice
Did you find this article helpful?
Thank you for your feedback.
Subscribe to our newsletter
Did you find this article helpful?
Please provide a response
Thank you for your helpful feedback
Please contact us if you would like to share additional feedback, have a question, or would like Canadian immigration assistance.
  • Do you need Canadian immigration assistance? Contact the Contact Cohen Immigration Law firm by completing our form
  • Send us your feedback or your non-legal assistance questions by emailing us at media@canadavisa.com
Related articles
The five most important things to know about renting in Canada
A picture of the Toronto skyline
Ontario, British Columbia, and Quebec invite candidates to apply for provincial immigration
Beach on Haida Gwaii
Saskatchewan introduces two new PNP pathways for skilled newcomers
Bridge over river in Saskatoon
Ontario, British Columbia and Manitoba invite candidates to apply for provincial nomination
Fraser River in British Columbia
Top Stories
Canada vs. Australia: Which country is the best choice for international students seeking immigration?
CRA to hold webinar for international students
Manitoba announces new pilot pathway to permanent residency
Join our free newsletter. Get Canada's top immigration stories delivered to your inbox.
Subscribe
More in Provinces
Manitoba announces new pilot pathway to permanent residency
A walkway through a field
Your guide to Ontario’s paid days off in 2025: public holidays and long weekends
An Out-Of-Office post-it stuck on a laptop
British Columbia and Alberta invite PNP candidates
New survey reveals the happiest provinces in Canada
A person holds a cutout of a smiley face in front of their face.
Link copied to clipboard