From surviving to thriving

2 min read · August 15, 2025
New Power Labs

Entrepreneurship is a key entry point into the Canadian economy for many newcomers.

Immigrants are slightly more likely to be business owners than non-immigrants – 2.9% compared to 2.0% – and they tend to operate firms that pay higher net taxes per employee (BDC, 2024; Liu et al., 2024). The drive and contribution are clear, but Canada has yet to fully unlock this economic potential. 

Many immigrant entrepreneurs are concentrated in highly competitive, low-margin sectors such as small retail, food service, and personal care – where scaling is difficult and productivity gains are hard to achieve. Limited access to financing compounds the challenge: only 22% of immigrant owners apply for financing, compared to 28% of Canadian-born owners (Ostrovsky et al., 2019). Without the capital to invest in skilled labour, technology, or growth, these businesses remain in survival mode.

However, when immigrant entrepreneurs co-own businesses with Canadian-born partners, productivity soars – often matching or surpassing that of Canadian-born-owned firms. Diverse co-ownership leverages diverse networks, market insights, and cultural fluency to benefit the entire economy (Liu et al., 2024).

For some immigrants, entrepreneurship is a way around labour market barriers; for others, it’s a path to scale new ideas. In every case, the potential is there. Realizing it means creating structural support: tailored financing, reduced credit barriers, and incentives that foster collaboration and inclusion.

Canada needs more businesses, and more of them to thrive. Elevating immigrant entrepreneurship is one way to get there.

Narinder

New Power Labs

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