In Canada’s fast-growing and industrialized economy, there is unlimited opportunity and potential. As one of the wealthiest countries, Canada also offers the highest standard of living while lowering taxes and strengthening its economy with an inflation rate of 2.3%.
Canadian immigrant entrepreneurs are opposing the trend seen in other developed countries by doing business for at least as long as their Canadian counterparts.
A study found that 80% of immigrants who own private companies were still owners two years after starting their business. Also, 58% still had their own business seven years later.
Doing business in Canada as a foreigner has several significant advantages, namely favorable trade agreements with other countries (especially with the United States), lower corporate tax rates, and the availability of highly skilled workers.
Also, Canada is a stable economy that functions very much like the US markets. This article will consider these reasons in more detail.
What Are Business Opportunities In Canada?
If you are looking for a country where you can “start a business,” Canada is ranked 2nd in the world for this initiative, and for “Cross-border Trade,” it ranks 22nd. However, the basis of the Canadian economy is foreign trade.
Here are Canada’s most attractive business sectors:
- Logging, Oil, and Energy
- Software (Entertainment and others)
- Manufacturing
- Automobile and Aircraft
- Commercial Fishing and Seafood
What Are Canada’s Important Events?
Canada hosts exhibitions covering a wide variety of industries. Although the number of business travelers is comparatively smaller than that of Canadians traveling domestically, the country has no shortage of active trade shows every year.
Canada ranks among the highest international standards of government transparency, economic freedom, civil liberties, and education, considering its smooth trading and business port.
Canada has emerged as a strong contender on the commercial front, ranking 9th in the world as a favorable investment option. With an impressive tax relief program, a highly secure banking system, and duty-free manufacturing tariffs, it is probably no surprise that Forbes magazine ranks Canada as the ‘Numero Uno’ for doing business.
Complete market research should help you understand the country and formulate a strategy for international expansion.
What Are The Favored Fields Of Young Immigrant Entrepreneurs?
- Engineering and science-based manufacturing.
- Telecommunications.
- Data processing.
- Computer systems design and consulting services.
It is likely because a high proportion of economic immigrants have degrees in engineering and computer science.
Meanwhile, business-class immigrants concentrated in more traditional sectors, such as wholesale, retail, and foodservice.
A significant portion of the self-employed business class focuses on real estate, more than other immigration classes and Canadians by birth.
Reasons Why Entrepreneurs Are Doing Business In Canada
As mentioned, there are several advantages to starting your business in Canada. Here are some of the reasons that make this northern neighbor of the United States an ideal place to start a startup.
Lower Corporate Taxes
Companies, especially young ones, may often find that high corporate tax rates are detrimental to their success. It is especially true in an economy like the United States, where the national corporate tax rate was 21% in 2020. While local rates may differ from federal rates, industry rates range from 21% to 31%.
In contrast, with a corporate tax rate of 15%, Canada has one of the lowest rates globally (in 2010, it was 18%). The Canadian government often renegotiates this course to make the trading environment friendly to companies. It, in turn, is aimed at achieving better economic growth in the long term.
A Stable Economy
Ranked 6th on the Forbes Best Countries for Business list, Canada is a relatively stable economy compared to the United States (17th on the same list).
The continuous economic growth observed in the country from 2005 to 2014 is evidence of this fact. A few of the reasons for this stability are free to trade, the low tax rates mentioned above, and a controlled bureaucracy.
For instance, in 2008, when the financial downturn shook the economies of several countries worldwide, Canada rapidly recovered from the crisis thanks to the timely intervention of the Bank of Canada in its lending practices.
At present, international think tanks and institutional observers continue to forecast sustained growth in the Canadian economy. It is a good reason why companies often consider doing business in Canada. Recent trends are favorable for the financial services sector, renewable energy, and the digital media market.
Availability Of Skilled Workers
With its good universities and vocational training institutes, Canada has a high availability of skilled workers in the workforce.
According to the Organization for Economic Cooperation and Development (OECD), the number of people aged 25-34 in Canada with higher education is 62%, which is the second-highest rate in the world.
Thanks to friendly immigration practices, the number of non-disabled foreign-born persons over the age of 18 with higher education is the highest in the world (65%).
Therefore, if you are planning to launch your startup in Canada and hire talent from the country itself, you should get the quality you are looking for.
Cultural And Gender Diversity
You may have seen an open letter circulated by the Canadian tech community titled “Diversity is Our Strength” in response to an Executive Order banning citizens from entering the United States again.
Ethnically diverse companies are about 35% more likely to be financially superior. The AVA startup family alone covers India, the Philippines, Korea, Taiwan, Japan, Russia, Ukraine, Pakistan, China, Italy, Argentina, and Hong Kong.
Canada is better at embracing cultural diversity than most other countries in the world with its deep immigration policies.
Moreover, most women-owned small and medium-sized enterprises account for more than $117 billion in annual economic activity in Canada. Thanks to this growing success, in March, the Canadian Business Development Bank announced $ 700 million in funding for female-led technology startups.
The Government Support For Tech
Salary grant programs offer much-needed support to early-stage companies such as BCIC, Cleantech, IRAP Youth, and Youth Green.
Also, the Scientific Research and Experimental Development program (SR&ED) is a tax credit program that gives $ 4 billion annually to companies of all sizes in Canada.
Recently, the Canadian government announced the launch of the Innovation Supercluster Initiative to support large-scale collaboration of players in the innovation ecosystem.
Bottom Line
Overall, Statistics Canada’s survey shows a thriving entrepreneurial spirit among young immigrants to Canada. Regardless of economic class, immigrants tend to start their businesses or become self-employed at a higher rate than Canadians.
Start-up businesses are a central factor associated with economic growth. Evidence suggests that immigrants play a crucial role in helping the host country’s economy thrive.
If all these reasons weren’t enough, here’s the rub. It’s no secret that Vancouver has been repeatedly recognized as one of the “most livable cities in the world.”
Vancouver has also been recognized as one of the most startup-friendly cities globally and the best city for tech entrepreneurs in Canada. Who wouldn’t want to work in a beautiful city located between the mountains and the sea and ranks the top Green Canopy city in the world?
Ready to start the most exciting business adventure of your life? Then don’t wait any longer. If you need professional and legal advice to start preparing your immigration documents, contact RCIC Canada, a regulated Canadian immigration consultant specializing in specific types of Canadian visas.
