Immigrants make significant contribution to entrepreneurship in Canada

 

There is no refuting the fact that Canada recognizes the contribution of immigrants to the economic growth of the country. This is reiterated in the number of immigrants Canada has welcomed so far in 2021. The figures amount to 184,000 immigrants. At this rate the country is well on its way to achieve the immigration target of 401,000 new immigrants in 2021. This target will increase by 10,000 in 2022 and also in 2023.

The IRCC is conducting Express Entry draws and the provinces are conducting PNP draws on a regular basis to meet these immigration targets.

Based on this immigration targets by the IRCC, Statistics Canada states, “By 2036, the share of immigrants in Canada’s population would stand between 24.5% and 30.0% …These proportions would be the highest since 1871.”

If the current level of immigrant intake continues, half of the population in 2036 is expected to be made up of immigrants and second-generation individuals.

A second-generation individual is a non-immigrant in Canada who has at least one parent who was born overseas.

Contribution of immigrants

Immigrants add to the labor force and expand the population of the labor force. They contribute to the tax revenues that support public services like social security and healthcare.

Employers in Canada will be able to access the skills they require as more immigrants arrive. An ageing local population and the low birth rate means there are not enough local workers to go around, immigrants contribute to fill the need.

Entrepreneurial immigrants who start enterprises in the country create jobs and stimulate innovation. They bring in foreign investment and help to the economy.

Immigrants as business owners

According to Statistics Canada, 33% of all business owners in Canada are immigrants. Immigrant business owners not only contribute to the economy but also create jobs.

By launching new firms and creating jobs, immigrant entrepreneurs have the capacity to make a direct contribution. Job creation is critical for economic growth, and there is a growing body of research on immigrant entrepreneurship that aims to uncover characteristics that influence immigrant entrepreneurship and the success of immigrant-owned businesses.

According to a study by Statistics Canada, immigrant entrepreneurs are more likely to be highly educated in science, technology, engineering, and mathematics [STEM] fields in general. Patent filings have also been found to be more common among immigrant entrepreneurs. Factors that are directly linked to innovation.

Entrepreneurs play a critical role in the Canadian economy by ensuring competition and consumer choice for products and services. Immigrant entrepreneurs and business leaders will play a vital role in the growth and prosperity of the Canadian economy in the future.

Visa programs for immigrants wishing to set up a business in Canada

For immigrants wishing to set up a business in Canada, the Canadian investment visa program offers four categories of business visas:

• Startup visa program
• Entrepreneur visa program
• Self Employed Persons
• PNP Business Programs

Startup Visa program

Immigrant entrepreneurs are encouraged to grow their businesses in Canada under the Startup Visa program. Successful candidates can form a partnership with a private Canadian investor to obtain funds and advice on how to run their business. The three types of private sector investors they can approach are:

1. Venture capital fund
2. Business incubator
3. Angel investor

It also offers permanent resident visa to qualified immigrants who start a business in the country. The other name for this visa program is the Startup Class.

 Eligibility requirements for visa applicants are:

• Have proof that the business has the required support from a designated entity in the form of a Commitment Certificate and Letter of Support
• Have a qualifying business
• Have the required proficiency in English or French
• Have completed at least one year of post-secondary education
• Have enough funds to settle in Canada and support dependent family members
• Must clear the medical tests and security requirements

To be eligible for this visa, applicants must have the backing or sponsorship of a specific Canadian venture capital fund, angel investor, or company incubator.

The IRCC has a designated list of specific venture capital funds, investor groups, and business incubators.

Candidates can come on a Canada work permit sponsored by their Canadian investor and then apply for a PR visa once their firm is established in the country under this visa scheme.

Entrepreneur program

Under this program, one can open a business in Canada, and gain permanent residence status

Eligibility requirements

Applicant must:

• Establish, purchase or make a substantial investment in a business in Canada within 2 years of landing in Canada which will result in a significant contribution to the economy
• Actively manage the business
• Have at least one Canadian citizen or permanent resident as an employee apart from himself and his dependents.

Self-Employed Persons Program

This stream is open for those who wish to either set up or purchase a business in Canada that will make a contribution to the economy and its cultural and artistic way of life.

Eligibility requirements

• Have a minimum of two years of relevant experience
• Have the ability and willingness to be self-employed in Canada
• Meet the program’s selection requirements which is a minimum of 35 points
• Fulfil the medical, security and other conditions

The selection to this program is based on the points acquired under the following criteria:

• Experience
• Education
• Age
• Language Abilities
• Adaptability

PNP business programs

The provinces of Canada have several business investment avenues through PNP programs across Canada.

These rules are specific to each province. Some provinces like British Columbia have flexible rules regarding businesses by non-residents which can be started on a sole proprietorship basis. The province offers an entrepreneur immigration program which consists of three streams:

• Entrepreneur Immigration Category
• Entrepreneur Immigration — Regional Pilot
• Strategic Projects Category

The province of Manitoba offers a Business Investor Stream, where the province will recruit and nominate qualified business investors and entrepreneurs from around the world intend to start or buy a business in Manitoba. There are two pathways under this stream:

• Entrepreneur Pathway
• Farm Investor Pathway

If you want to start a business in a province where non-Canadians are not allowed, you can do so by forming a partnership or corporation with one or more Canadian citizens or landed immigrants. You must first register your partnership or corporation with the provincial government.

Path to permanent residency

Investors and their family members can gain permanent residency in Canada through these programs provided they meet the selection requirements set out by the Canadian government. If you are an applicant, you must meet the following conditions:

• You must show that you have relevant business experience, as specified by the rules. In other words, you must have owned or run a qualified company for at least two years in the previous five years prior to your submission.
• You and your spouse must have collected personal savings of at least CAD 2 million by legal means.
• You and your family members must pass the medical and security assessments in Canada.