Immigrant entrepreneurs face more hurdles, plan to hire

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Newcomers looking to start their own business in Canada face added hurdles, but are more optimistic about hiring than the average Canadian entrepreneur.

A new report from the financial payments company Square found that 65 per cent of newcomer entrepreneurs ran into roadblocks when it came to having their skills and experiences recognized in Canada, while 27 per cent turned to business ownership after struggling to find a job.

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“Newcomer entrepreneurs tend to think big and display extraordinary determination — their ambition for business growth and job creation should not be diminished,” Roshan Jhunja, head of business solutions at Square, said in a news release.

“Newcomers must be better supported in their entrepreneurial journey, especially at critical junctures of building their businesses.”

Newcomers to Canada have had tremendous difficulty with transferring their international skills to the Canadian workforce.

A 2022 report from Statistics Canada found that more than 25 per cent of immigrants with foreign postsecondary degrees are not working in jobs that require a high level of education.

Meanwhile, just 41.1 per cent of immigrants with foreign medical degrees are working as medical doctors in Canada and 36.5 per cent of immigrants with foreign nursing degrees are working as nurses.

Newcomer entrepreneurs also struggle to get their businesses off the ground. The report found that 56 per cent had trouble landing funding, while 44 per cent couldn’t find affordable commercial space and 42 per cent struggled dealing with Canadian regulations.

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Still, there is plenty to be optimistic about.

For one, entrepreneurship has offered a lot of satisfaction for newcomers.

The report found that 90 per cent of newcomer entrepreneurs believe starting a business was a good idea, while more than 80 per cent said it has allowed them to reach their full potential in Canada.

Newcomers are also noticeably more optimistic about the state of the economy.

Nearly 70 per cent of immigrant entrepreneurs intend to increase their hiring plans in the coming years, compared to 43 per cent of entrepreneurs who’ve been in Canada for more than 10 years.

“Our findings make it clear that while newcomers are uniquely able to create golden opportunities amid obstacles, there are specific barriers hindering newcomers’ ability to build their business,” the report states.

“Newcomers require dedicated support in their entrepreneurship journey, especially at critical junctures. This need is all the more pressing given the anticipated increase in immigration and the high rates of business ownership among newcomers relative to non-immigrants.”

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