Canada's Start-Up Visa program attracts immigrant entrepreneurs from the United States.
Since the introduction of Canada's Startup Visa Program in 2018, entrepreneurs currently based in the U.S. have shown a higher tendency to relocate to Canada to start businesses. This program has significantly influenced entrepreneurs' decisions to start businesses, offering them a more attractive option compared to the complex U.S. immigration system.
The Impact of Canada's Start-Up Visa Program
This study examined a sample of 1,190,798 non-Canadian entrepreneurs with college degrees who lived in the U.S. before establishing startups in the U.S. or Canada between 2006 and 2021. In this sample, immigrants accounted for 26.1%, significantly higher than the 14% of the total U.S. population.
Researchers found that Canada's Entrepreneur Visa Program increased the likelihood of immigrant entrepreneurs in the US starting a business in Canada by 0.048 percentage points, up from a baseline of 0.069%. This effect has persisted and grown over the decade since the program was introduced.
Reactions from Immigrant Groups
Reactions to this program have varied among immigrant groups:
- Asian immigrants tend to move to Canada and start businesses there more often due to the longer waiting times for permanent residency through employment in the US and their greater representation in Canadian organizations. In 2021, Asians comprised 20.2% of Canada's population compared to 7.2% of the US population.
- Hispanic immigrants : Less likely to start a business in Canada. Hispanics make up 1.6% of Canada's population compared to 18.7% of the US population.
These results confirm that immigrants tend to settle in their ethnic communities, which provide social capital, information on entrepreneurial opportunities, and access to potential employees, suppliers, investors, and customers.
Startup Survival Rate
Startups founded in Canada by entrepreneurs who previously lived in the U.S. have a slightly lower survival rate compared to startups founded by native-born Americans or Canadians:
- After three years, the survival rate for startups founded by immigrants from the U.S. is approximately 73%, compared to 85% for those founded by native-born Americans.
- The lower survival rate may be due to factors such as the cost of relocation, the responsibilities of being a foreigner, or differences in the startup ecosystem between Canada and the United States.
— Leonardo Vasquez
Research on the impact of Canada's Startup Visa Program on immigrant entrepreneurs from the United States can be found in reports and analyses from organizations such as the National Bureau of Economic Research (NBER) and immigration policy research organizations.
Detailed information and statistics on this research can be obtained from sources such as NBER reports or research papers published in specialized journals. You can also find more information on the websites of reputable research organizations and immigration policy analysis reports.
For detailed information and to view the full study, you can refer to the official website of the National Bureau of Economic Research (NBER) or similar research organizations. Here are a few helpful links:
- National Bureau of Economic Research (NBER)
- Federation of American Scientists (FAS)
- Brookings Institution
