Immigration Updates - Canada
Immigrants in Canada leave locals behind in founding new companies
Be it Koreans, Indians, Hispanic or others, immigrants in Canada were much more dynamic than the local populace in setting up companies, which, in turn, created jobs for not only themselves, but others too, according to a study.
Statistics Canada, a national research agency of Canada, found in a new study that 5.3 percent of immigrants were able to set up a private company within about nine years of shifting to Canada, a higher percentage than native Canadians, who set up 4.8 percent of the companies during the same period.
About 19.6 percent of immigrants became self-employed by setting up their own enterprises, compared with 16.1 percent of Canadians.
Immigrants living in this North American country for a period ranging from 10 to 30 years, were said to be more enterprising in going it alone than citizens of Canada, added the study.
Around 5.8 percent of tax-filers for longer periods among immigrants were owners of incorporated companies.
Taken on the basis of tax statistics, beginning 2010, this was a study of immigrants who made Canada their home in 2014, and those who resided in Canada for 10 to 30 years.
A prominent finding of this study was that private firms owned by immigrants were more likely to be smaller in size when compared to those owned by Canadians. On an average, companies owned by immigrants had four employees as against seven in those owned by locals.
Slow to begin with, immigrants become entrepreneurs by the time they had spent six years in Canada, as they outpaced Canadian natives.
Immigrants most likely to set up their own firms were those who arrived in Canada under the business class program. It is illustrated by the fact that 15.2 percent of the applicants owning private businesses were immigrants in this class, as against 6.2 percent of immigrants who came to Canada under the economic class, and 4.3 percent who came under the family class.
Over 50 percent of the firms owned by immigrants were in sectors such as technical, retail, transportation, construction, and food.
Danny Leung, Director, Economic Analysis, at Statistics Canada reasons that fewer barriers to these verticals combined with lower capital costs incurred were the possible motivations behind immigrants opting to set them up. More than a third of the self-employed immigrants, engaged in realty, the study concluded.