It is surprising that in Canada, one of the best places in the world to start a business, the number of immigrant entrepreneurs is more than their local counterparts. According to a new report by the Business Development Bank of Canada (BDC), immigrants contribute more significantly to the entrepreneurial landscape of Canada as compared to those born in the country.
The report further says that the entrepreneurial rate among newcomers is more than double the rate for Canadian born population, implying that foreigners are more likely to take steps to start entrepreneurial projects in Canada. Last year, the number of immigrant entrepreneurs increased by 22% reaching a total of 251,600 newcomer businessmen. Moreover, by 2032 immigrants are expected to account for up to 80% of Canada’s population growth which will further escalate entrepreneurship in Canada in coming years.
One of the chief reasons why immigrants become entrepreneurs is the demand for Canadian qualifications to apply for other jobs. Foreigners do not have any other choice than to become self-employed for a living. This, however, has proved to be a boon for Canada as the contribution of immigrants in the Canadian economy has exceeded that of Canada borns.
In Canada, immigrants usually have lower business ownership rates during their initial years in Canada than their Canadian counterparts. However, after a few years, immigrants gain higher chances to be business owners than the Canadian-born population.
A new study by the Statistics Canada Study, highlights the positive economic role played by the country’s immigrant population. According to the study, businesses owned by immigrant entrepreneurs have created more jobs than those owned by local Canadians.
The recent immigrants mostly invest in professional, technical and scientific sectors, creating multiple job opportunities in these fields. Businesses established by immigrants in the field of hospitality have created high job prospects in Canada.
The study also shows that firms owned by immigrants accounted for a disproportionate share of net job creation in the last decade. Moreover, the data presented by the Statistics Canada Study indicates that average annual net job growth per firm was higher among immigrant-owned firms than among firms with local owners. The prospect of job opportunities depends upon the size of businesses and, therefore, rapidly growing immigrant owned firms has led to more number of employment.
Furthermore, 25% of the net new jobs created by private businesses were attributable to immigrant-owned firms and only three-quarters of the net jobs created were assigned to firms owned by Canada borns. A closer analysis at these figures show that these differences arise because immigrant-owned firms were younger on average and, thus, create jobs at a higher rate.
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