UncategorizedJuly 5, 2023by sai ram dowluriImmigrants more likely to start a business and create jobs than those born in Canada

 

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The Business Development Bank of Canada (BDC) has conducted a study revealing the growing diversity of the entrepreneurial landscape in Canada, thanks to immigrants.

According to the study, newcomers to Canada are more inclined to start businesses that experience rapid growth and create a higher number of net jobs per enterprise compared to the Canadian-born population.

The BDC reports that the entrepreneurial rate among immigrants is more than twice that of Canadian-born individuals, indicating that immigrants are twice as likely to undertake entrepreneurial ventures. This includes starting a business, acquiring a business, or obtaining equipment to launch a business.

Between 2006 and 2018, the number of newcomer entrepreneurs increased by 22% to reach 251,600.

Considering that immigrants are projected to account for up to 80% of Canada’s population growth by 2032, the BDC predicts that this trend will continue to drive entrepreneurship in Canada for decades to come, aligning with the increasing diversity of the country.

In addition to immigrants, the study also highlights the growing participation of women, millennials, and older Canadians in entrepreneurial endeavors.

The BDC study also examines job satisfaction among entrepreneurs, finding that although running a business is highly stressful, entrepreneurs generally report feeling professionally fulfilled.

Approximately 90% of entrepreneurs expressed professional satisfaction, citing their enjoyment of business management, daily motivation to work, and contentment with their business progress.

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Entrepreneurs are motivated by factors beyond financial gain, such as independence, autonomy, flexibility, passion, and self-fulfillment, which play significant roles in driving entrepreneurial pursuits.

However, the road to owning a successful business is not without challenges. Three-quarters of entrepreneurs surveyed acknowledged experiencing financial insecurity, overwhelming stress, and a lack of benefits compared to employed individuals.

Entrepreneurial success and satisfaction are influenced by specific acquirable skill sets. The study highlights the importance of managerial skills, technical skills, and grit.

Individuals who are goal-oriented, resilient in the face of failure and setbacks, and remain undeterred by adversity are more likely to succeed as entrepreneurs.

The concept of “grit,” referring to the passion and perseverance exhibited in pursuing long-term goals, is crucial for entrepreneurs. While the study does not definitively determine whether grit is innate or learned, it emphasizes that courage and hard work are essential for starting and growing a business.

The study also establishes a strong correlation between an entrepreneur’s level of satisfaction and their level of managerial and technical skills. Technical skills assessed by the BDC include financial management, sales and marketing, human resources management, operations management, and strategic planning. Managerial skills are categorized into organizational management, leadership and people management, innovation, and networking. Entrepreneurial satisfaction is significantly increased by skills in innovation and organizational management, while skills in innovation and networking positively influence sales growth.

Overall, the study highlights the positive impact of immigrants on Canada’s entrepreneurial landscape and emphasizes the importance of skill development and perseverance for entrepreneurial success and satisfaction.