Newcomers To Canada Starting More Successful Businesses

The data looked at business ownership between 2019 and 2021 and shared some important information about immigrant-owned businesses. It dug into total revenues, compared newcomer business ownership between provinces and territories, and industry. Let’s take a look at how newcomers are faring in Canada’s business environment. 

Key Takeaways

• The number of newcomers who own a business increased between 2019 and 2021, especially amongst those who have been in Canada for 5 to 9 years. 
• Newcomers are increasingly scaling their business revenue, showing that more newcomers are succeeding in operating their businesses in Canada. 
• Immigrants who have been in Canada for 10+ years and who own a business are more likely to own businesses earning $1 million or more. 
• Ontario is a hot bed for immigrant-owned businesses, but newer arrivals (who have been in Canada for five years or less) are thriving in British Columbia.

Where Do Newcomers Start Businesses In Canada? 

The number of newcomers who owned a business in Canada increased in every province and territory between 2019 and 2021. While this isn’t necessarily surprising, given that the number of immigrants also increased in that period – it is impressive when we consider that non-immigrant business ownership decreased during this time. 

Here are some interesting trends we found in the data: 

• Ontario, BC, and Quebec have the highest numbers of newcomer business owners. 
• The number of immigrants starting businesses in Nova Scotia, New Brunswick, and Manitoba are growing rapidly – at faster rates than in BC, Ontario, and Quebec. 

Newcomers Who Arrived In Past 5 Years Starting More Businesses

In almost all provinces and territories, the number of newcomers who had arrived in the five years prior to 2022 increased at very high rates. This trend was especially noticeable in Nova Scotia, Ontario, and BC.  Meanwhile, newcomer business ownership dropped in Prince Edward Island, Alberta and Saskatchewan. 

Newcomers who landed in the 5 years before 2022 tended to favour business ownership in the following sectors: 

• Retail and wholesale trade
• Accommodation and food services
• Real Estate and rental and leasing.

Finally, and excitingly, there was a 38% increase in newcomers with businesses earning $1-$2.5 million annually. This shows that more new arrivals are succeeding and scaling their businesses quickly. 

Immigrant Business Owners Earning More In Recent Years

Speaking of immigrant business owners earning more – the proportion of immigrant businesses earning $250,000 or more per year increased quite dramatically from 2019-2021. Plus, there was a spike in the number of immigrants who earned over $2.5 million annually in 2022. 

Here are the interesting trends: 

• There was a huge jump in the number of newcomer business owners earning between $1-$2.5 million. 
• The number of immigrant business owners with revenue of $2.5 million or more increased for newcomers, and immigrants admitted 5-9 years ago and 10 or more years earlier. In other words, more immigrant business owners are operating with higher revenues. 

Industries Immigrants Are Thriving In

Incredibly, it’s a long list. Here are the industries in Canada immigrant business owners are increasing:

• Construction
• Manufacturing
• Retail trade
• Transportation and warehousing
• Information and cultural industries
• Finance and insurance
• Real estate and rental and leasing (significant jump)
• Professional, scientific, and technical services
• Administrative and support, waste management, and remediation services
• Educational services
• Healthcare and social assistance
• Arts, entertainment and recreation
• Accommodation and food
• Other services and unclassified. 

Tips For Newcomers Looking To Start A Business In Canada

These are three quick tips for newcomers who want to start a business in Canada: 

Adapt to Canadian Business: Networking is crucial in Canada’s business world. Build strong relationships and ensure clear, professional communication.

Build Credit and Financial Records: Establish a credit history and stay organized with taxes, including GST/HST registration if needed. Yes, your credit score matters – even in business.

Consider Newcomer Specific Financing and Support: Companies like the Business Development Bank of Canada (BDC) have specific products and services for newcomers to Canada. You can learn more here.

Finally – a note from our Registered Immigration Consultant Rebecca Major: it’s important to make sure you’re permitted to work in Canada before starting a business. If you are an employee of a business, even if it is a business you own, you must have the correct legal authorization to work in Canada. Those on a closed work permit or who are in Canada as a visitor need to examine their options to work in Canada before starting their company. 

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