Why does Canada need to accelerate its immigrant entrepreneur visa program?
( The Star ) Mike Lazaridis, Arlene Dickinson, Tobi Lutke, Susur Lee — what do these Canadians have in common? They immigrated to the country before becoming successful entrepreneurs.
SCHEDULE A CONSULTATION TO FIND OUT IF YOU ARE RIGHT FOR THE START-UP VISA PROGRAM.
Each person has their own story, but immigrant entrepreneurs play a unique role in the country's economic development. First and second-generation entrepreneurs account for 34.7% of all early-stage entrepreneurs in Canada—significantly higher than in most other comparable economies. And according to Statistics Canada, companies owned by younger immigrants grow faster and have higher job creation rates. They are also more likely to participate in global markets.
Canada has successfully navigated its traditional brain drain with the help of the Canada Global Talent Program and the Trump-era U.S. immigration rhetoric. But venture capital funds, angel investor groups, and business incubators are now relying on a different, less well-known tool to bring more promising entrepreneurs to Canada – the federal Start-up Visa Program (SVP) . Over the past five years, 1,613 foreign entrepreneurs have been approved for permanent residency under the program, creating around 200 new companies.
The founders loved our cultural openness, research environment, and ease of doing business. But there was a problem: The pandemic slowed down the approval process, bringing SUVs to a near standstill. The advertised six-to-twelfth month wait times for permanent residency have now been pushed up to three years.
That doesn't work in the world of tech startups, where advantages can be gained or lost in months or even weeks – and there are over two dozen other countries with startup visa programs that compete with the Start-Up Visa. If we don't catch up with the speed of approvals, we risk losing these talented founders to countries willing to move faster.
The Spark Centre, where the author works, is one of the most active users of the SUV program. A selection of successful—and disappointing—SUVs is featured in a new report by the Innovation Economy Council , an independent voice for the innovation ecosystem founded by the MaRS Discovery District. The report, “Resettlement Nation: How Immigrant Tech Founders Drive Canadian Innovation,” is written by Nora Underwood.
The most common countries of origin for applicants to Canada's SUV program are Iran, Vietnam, China, Hong Kong, and Taiwan, followed by Brazil, Egypt, Nigeria, Japan, India, Ethiopia, Bangladesh, and Libya. These founders work in a variety of fields, but particularly in life sciences, advanced medicine, advanced materials, and advanced manufacturing.
Most have two university degrees, some have three, in their respective fields. They've spent decades in their areas, become experts, and decide to establish businesses overseas with all the knowledge and networks accumulated throughout their careers. They typically come to Canada with their own savings plus $400,000 to $500,000 in investment capital. We should want these talented individuals to set up businesses here – as quickly as possible.
