Newcomer entrepreneurs will become increasingly important in Canada with over 40% of business owners projected to be born outside of this country in the year 2034, according to research conducted by the Business Development Bank of Canada (BDC).
In an episode of The Unsure Entrepreneur podcast, host Roger Pierce sits down with Sylvie Ratté, Senior Economist at the BDC, and Mathieu Galliot, Economist at the BDC, to talk about the current and future landscape of small business in Canada and the resources available to support immigrant entrepreneurs.
Newcomers are rapidly changing the face of entrepreneurship and driving much-needed innovation and growth.
The podcast, which shares insights into self-employment through interviews with small business owners and industry experts, reached out to the BDC after reading about the bank's extensive research in the article 'Immigrant entrepreneurship is taking centre stage in Canada.'
The discussion opens with a surprising statistic: 34% of all entrepreneurs in Canada are immigrants. As Sylvie and Mathieu explain, this is not only significant but a trend that will continue to grow. "In the next ten years, 40% of all entrepreneurs in Canada will be immigrants," says Sylvie in the podcast interview.
Immigrant entrepreneurs, despite making up one-quarter of the population, represent one-third of all entrepreneurs — a testament to their determination and contribution to the country’s economy.
Here are three key takeaways from the episode:
Immigrants are driving innovation: According to Sylvie, immigrant-owned businesses are responsible for 25% of net job creation in Canada and are more likely to invest in intellectual property and new technologies.
The entrepreneurial landscape differs by province: For example, 43% of entrepreneurs in Ontario are immigrants, while only 20% of entrepreneurs in Québec share the same background.
Immigrant entrepreneurs face unique challenges: From building credit history to navigating unfamiliar regulations, many newcomers struggle to find their footing in a new country.
But why are immigrants more likely to become entrepreneurs? Many people owned businesses in their country of origin and seek to apply their talents here. And, being connected with two countries, immigrants have the unique advantage of seeing new opportunities in importing or exporting.
Mathieu points out that Canada has a long-standing tradition of welcoming immigrants, driven by a need to boost its aging population. "Canada has policies that actively encourage immigration, and the importance of immigration to the economy is nothing new," he says. In fact, Canada’s immigrant population as a proportion of the total population is higher than that of other countries like the US, UK, and France.
However, the path to entrepreneurship in Canada isn’t without its hurdles. Many immigrant entrepreneurs face difficulties establishing a credit history, which is essential when trying to secure financing. "When you’re new to the country, it can be hard to understand how credit scores work," explains Mathieu. This makes it even harder for newcomers to obtain loans or build the financial foundation needed to start a business.
Despite these challenges, organizations like BDC are stepping up to offer support. They provide financing specifically tailored to immigrant entrepreneurs and offer resources in multiple languages to help newcomers navigate the business landscape.
Sylvie highlights BDC’s Newcomer Entrepreneur Loan, which offers $25,000 to $50,000 to entrepreneurs who have been in Canada for less than three years, with no requirement for an established credit history.
As the share of entrepreneurs in Canada's population continues to decline, immigrants are stepping in to fill that gap.
For aspiring immigrant entrepreneurs, the advice from Sylvie and Mathieu is clear: leverage the available resources and don’t be afraid to seek help.
Whether it’s through BDC’s financing options or mentorship programs from organizations like Futurpreneur, a national nonprofit supporting new entrepreneurs ages 18 to 39, there are plenty of ways for newcomers to get the support they need.
So, what’s the future of entrepreneurship in Canada?
According to Sylvie, immigrant entrepreneurs are a key part of solving Canada’s productivity challenge. "Entrepreneurial dynamism is crucial for increasing competition, innovation, and productivity," she says. As the number of Canadian entrepreneurs continues to decline, immigrants are stepping in to fill that gap, offering fresh ideas and contributing to a more innovative and dynamic economy.
Canada’s future, both economically and culturally, will undoubtedly be shaped by these newcomers. And with the right support, immigrant entrepreneurs will continue to drive the country forward — one business at a time.
Listen to this episode of The Unsure Entrepreneur podcast.
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[Photo credit: BDC]
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