Canada’s economy thrives on the energy of entrepreneurship, with small and medium-sized enterprises (SMEs) playing a crucial role in driving growth, innovation, and job creation. For foreign entrepreneurs considering a move to Canada, it’s essential to explore the vibrant economic landscape and the incredible opportunities it offers and understand how entrepreneurship is shaping the country’s economy.
1. Job Creation and Employment
- SMEs employ 63% of Canada’s workforce, with small businesses alone accounting for 10.7 million jobs and medium-sized businesses adding another 3.6 million jobs in 2022.
- As of 2022, almost 59.4% of new jobs in Canada were created by SMEs, highlighting their role as .
- Provinces like British Columbia and Saskatchewan have the highest proportion of small business employment, with over 98% of their workforce employed by SMEs. However, Ontario leads the nation in entrepreneurial activity and is home to 33% of Canada’s entrepreneurs, followed by Quebec and British Columbia at 19% each.
2. Contribution to GDP
- SMEs have contributed to about 50% of Canada’s GDP yearly since 2016, with small and medium businesses responsible for an average of 50.3% in the goods-producing sector and 47.0% in the services-producing sector.
3. Innovation and Diversity
- Immigrants drive 25% of new businesses in Canada, showcasing the country’s reliance on foreign talent for innovation and economic growth.
- Immigrant-owned businesses grow faster and create more jobs than those owned by Canadian-born entrepreneurs, with 57% of immigrant entrepreneurs having at least a bachelor’s degree.
- Canada’s AI sector, supported by entrepreneurial ventures, is ranked first in the G7 for year-over-year growth of AI talent, attracting nearly a third of all venture capital in the country. Canadian AI companies outpace the G7 average in patent filings at a rate of three times more.
4. Regional Development
- The federal Universal Broadband Fund is investing billions to connect 98% of Canadians to high-speed internet by 2026. This initiative helps rural entrepreneurs create digital hubs, boosting local economies and opening .
- Entrepreneurs in rural Canada are leading efforts in green innovation and sustainable development. They are working on renewable energy projects and eco-friendly farming practices.
5. Challenges and Opportunities
- Despite its strengths, Canada faces challenges such as declining venture capital activity.
- Entrepreneurs also cite difficulties accessing government funding, with 42% reporting it as very challenging in a BDC survey.
- However, programs like the Start-Up Visa Program aim to attract foreign entrepreneurs by offering permanent residency pathways for those who can create jobs and innovate. that in 2023, the Organization for Economic Cooperation and Development (OECD) recognised Canada as the most attractive country for immigrant start-up founders and entrepreneurs.
Why Foreign Entrepreneurs Matter
Foreign entrepreneurs bring fresh perspectives, skills, and capital to Canada, helping to address labour shortages and drive innovation. Programs like the Start-Up Visa Program are designed to support this influx, offering resources and mentorship to ensure success.
For business people looking to navigate Canada’s entrepreneurial landscape, Start-Up Visa Services provides tailored support, from securing funding to understanding regulatory requirements. With the right guidance and support, entrepreneurs can seamlessly integrate into Canada’s entrepreneurial ecosystem and contribute to its continued growth.
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