Immigrant entrepreneurship in Canada | BDC.ca

Source: Statistics Canada, Canadian Survey of Business Conditions, 2024 Q1. 

Lower levels of optimism and greater financial fragility could be explained by the fact that immigrant-owned enterprises are generally smaller. Among businesses with 50 or more employees, only 5% are majority immigrant-owned, compared to 59% that are owned by Canadian-born entrepreneurs (the other 36% are minority immigrant-owned).

Another potential explanation is that immigrant-led firms were more affected by the COVID-19 pandemic than other businesses because they are more concentrated in industries that require face-to-face contact, according to a study by Statistics Canada.

That same study found that businesses that are majority-owned by immigrants were more likely to receive the Canada Emergency Business Account (CEBA), the Canada Emergency Commercial Rent Assistance (CECRA) or the Canada Emergency Rent Subsidy (CERS). However, immigrant-owned businesses received slightly higher values than those owned by Canadian-born individuals.

With respect to financing from traditional financial institutions, there is little evidence to suggest that access to financing is more of a problem for immigrant entrepreneurs than for Canadian-born entrepreneurs once the results are adjusted for firm characteristics (for example company size or sector of activity). However, immigrant-owned firms were slightly less likely to apply for financing than Canadian-born firms. Yet, immigrant-owned firms were just as likely as Canadian-born firms to have their applications approved in full, according to a Statistics Canada study. 

A growing force in the Canadian economy 

Immigrant entrepreneurship will become increasingly important in Canada. In some provinces, one in two entrepreneurs will have been born outside the country in 2034.  

This entrepreneurial dynamism is a good news for the Canadian economy. The share of entrepreneurs in Canada’s population has been declining for two decades. This has likely contributed to Canada’s sluggish productivity growth.   

The entrepreneurial dynamism of immigrants could probably help our economy become more innovative and dynamic.  

We should, however, keep in mind that these businesses face unique challenges and that we must help them overcome these challenges.

This blog defines entrepreneurs as self-employed individuals with paid help. Businesses are described by majority ownership. Immigrant refers to a person who is, or who has ever been, a landed immigrant or permanent resident.