How immigrant entrepreneurs are shaping Canada’s future

Credit to Author: Canadian Immigrant| Date: Wed, 23 Oct 2024 01:05:48 +0000

Provided content

As Canada observes Small Business Month in October, it’s a fitting time to spotlight the vital role that immigrant entrepreneurs play in the country’s economy.  

Small businesses form the backbone of Canada’s economic landscape, and immigrant-led enterprises are emerging as powerful drivers of innovation and job creation. This year, we are seeing notable trends such as increased investment in research and development, a rise in women-led businesses, and a growing contribution to international trade. These trends underscore how immigrant entrepreneurs are not only transforming their communities but also shaping the future of Canada’s economy. 

 According to Business Development Bank of Canada (BDC), Canada’s only bank devoted exclusively to entrepreneurs, immigrant entrepreneurship is becoming a major force in shaping Canada’s economy. With more immigrants calling Canada home, their impact on the business world is growing. This trend is not only changing the business environment but also driving innovation and economic growth across the country. 

Immigrant entrepreneurs bolster the Canadian economy  

Recent estimates show that immigrants now make up about 24% of Canada’s population, up from 16% in 1991. Data reveals that 2.9% of the immigrant population aged 15 and over are entrepreneurs, compared to 2.0% for non-immigrants. This higher rate of entrepreneurship among immigrants highlights their resilience, creativity, and determination to succeed in a new environment. 

The growing presence of immigrant entrepreneurs significantly bolsters the Canadian economy. Studies reveal that immigrant-owned firms contribute 25% of net job creation, despite representing only 17% of all firms, largely due to their younger age and higher job creation rates. Additionally, a Statistics Canada analysis found that immigrant-owned businesses are more innovative and hold more intellectual property, which positively impacts productivity. A recent survey indicates that 10.9% of immigrant-led firms plan to increase their R&D spending in the next three months, compared to 6.7% of all private sector firms.  

Representation by gender and region 

There is still scope for improvement though when it comes to the representation of women entrepreneurs. While immigrant men are more likely to become entrepreneurs (with a rate of 4.4%), immigrant women, though less represented, still outperform non-immigrant women in entrepreneurship, with a rate of 1.5% compared to 1.1%. This shows a need for greater support to help immigrant women break into the business world, and targeted resources could help bridge this gap. 

Regionally, the concentration of immigrant entrepreneurs varies. In provinces like Ontario and British Columbia, immigrants already make up over 40% of the entrepreneurial population, and projections show they will account for 50% in the next decade. In contrast, Atlantic provinces have a much lower representation, at around 10%. However, immigrant entrepreneurship is expected to rise across Canada, with BDC predicting that immigrants will make up more than 40% of all Canadian entrepreneurs by 2034, up from 34% today.  

Support systems are crucial for success 

The challenges immigrant entrepreneurs face are manifold. Their success depends largely on the support systems available to them. While some programs provide mentorship, there is a lack of widespread, accessible mentorship opportunities for immigrant entrepreneurs, especially those in rural or remote areas. Language barriers remain a significant challenge. Offering more business education, training, and resources in languages other than English and French could better support immigrant entrepreneurs, especially in the early stages of setting up a business.  

Organizations like BDC and others provide resources, mentorship, and funding opportunities tailored to the unique challenges immigrants face. According to BDC economists Sylvie Ratté and Mathieu Galliot, targeted support is critical. “Providing resources and mentorship can significantly enhance the success rates of immigrant entrepreneurs,” Ratté notes. “It’s about creating an environment where their innovative ideas can thrive.” Galliot adds, “The diverse backgrounds of immigrant entrepreneurs bring fresh perspectives, and this diversity drives innovation and economic growth in Canada.” 

The rise of immigrant entrepreneurship in Canada is a testament to the country’s diversity and resilience. With the right support and policies in place, immigrant entrepreneurs will continue to play a crucial role in shaping Canada’s economic future. 

The post How immigrant entrepreneurs are shaping Canada’s future first appeared on Canadian Immigrant.
http://canadianimmigrant.ca/feed