Category Archives: PNP business

Canada comes in top 5 among G20 in Entrepreneurship Ranking

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Lack of regulatory barriers, availability of venture capital funding and a culture that embraces entrepreneurship placed Canada in the top quartile in the EY G20 Entrepreneurship Barometer 2013 (U.S. Department of State)

A new report by Ernst & Young places Canada’s entrepreneurial ecosystem in the top five among the G20 countries.

The G20 Entrepreneurship Barometer 2013 ranks a country’s entrepreneurial environment according to its score in five sub-categories: access to funding, entrepreneurship culture, tax and regulation, education and training, and coordinated support between government, academic institutions and the private sector.

The formulation of the ratings relies on business environment indicators, like number of new businesses started per year, data collected in a survey of more than 1,500 entrepreneurs across the G20 countries, the insights gained in interviews with entrepreneurs, academics and experts, and a qualitative analysis of government initiatives to encourage and assist entrepreneurship.

Canada came fourth in the access to funding category, thanks largely to per capita venture capital funding that is second only to the U.S. It ranked third in entrepreneurship culture, behind the U.S. and South Korea, as interviewees had a generally positive opinion of the country’s attitude toward entrepreneurship and its acceptance of failure (more accepting than other countries).

In the tax and regulation category, which scores countries by the ease of complying with regulations when starting and running a business, and the number of special tax incentives for entrepreneurs, the country came second, after Saudi Arabia, for its simple business registration process, lack of labour laws allowing for a flexible labour market, and an abundance of tax subsidies for small and medium sized enterprises.

While the G20 Entrepreneurship Barometer is one of many possible ways of determining the quality of an entrepreneurial ecosystem, and has not been shown to predict for entrepreneurial success, Canada’s strong showing will at the very least help boost its image globally as a centre of innovation and a country that’s open for business.

Diane Francis Says Canada Needs a Silicon Valley

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Diane Francis says Canada needs to do more create its own version of Silicon Valley in order to obtain the economic benefits that tech entrepreneurs can provide

A recent article in the blog of Diane Francis, an editor-at-large for the National Post, argues that Canada needs to create its own version of the American Silicon Valley, and commends Citizenship and Immigration Canada (CIC) for taking a step in this direction with the creation of the Start-Up Visa.

Francis says that skilled entrepreneurs can provide the type of economic boost that a country cannot ignore:

Canada has been America’s farm team for centuries, providing brawn, brainpower and talent to feed its mighty industries. But the contest for talent has never been greater, notably for those technology entrepreneurs who are capable of invention, innovation and single-handedly replicating the GNP of small states.

She applauds Citizenship and Immigration Minister Jason Kenney’s May visit to the U.S. to recruit technology workers facing H-1B problems, and argues that the Canadian government needs to do more campaigns like this.

With the CEOs of American technology giants lobbying for greater government action to attract foreign tech talent to the U.S., Congress won’t stand still Francis says, and will try to match Canada’s Start-Up Visa program.

The federal government should be looking to add to its efforts now, to match the inevitable response by the U.S. government.

Not only should Canada be recruiting foreign tech workers living in the U.S., it should also be encouraging immigration by Americans themselves, who could find Canada’s tech clusters, a midst world class urban centres enticing, she argues.

Francis notes that the Government of Canada has a $500 million Venture Capital Action Plan in the works, which will subsidize Canadian venture capital firms that invest in Canadian start-ups.

Government subsidies like these, Francis says, are alone not enough to create a “technology venture capitalist marketplace” however, and the federal government should also be scaling up the Start-Up Visa program and increasing tax breaks for entrepreneurs.

A focus on economic impact of immigration

Francis’ call to action on attracting foreign entrepreneurs is one of several in a series by influential Canadian individuals and prominent Canadian institutions urging the country to make a more concerted effort to extract economic benefits from immigration.

Other than pushing for more entrepreneur friendly immigration programs, the other area of immigration policy that pundits have repeatedly pressed the country to give more attention to has been building on Canada’s strengths as a destination for international students and increasing the foreign student population.

This has included calls to make it easier for international students already in Canada to become permanent residents.

The provincial governments have also called on the federal government to increase the role of the provinces in selecting new Canadians. They say that the Provincial Nominee Programs (PNPs) allow them to select immigrants that meet their unique economic needs.

Canada Top Country for Immigrant Businesses – Financial Post

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Canada tops the list of countries to start a business according to a new article in the Financial Post (Martin Cajzer)

An article featured in last Friday’s Financial Post makes the case for Canada being one of the best countries in the world for immigrants to start a business.

Among the factors that make Canada such a welcoming place for immigrant entrepreneurs are its business friendly environment and immigration program, says author Chris Riddell:

The World Bank labelled Canada the best place in the G-7 to start a business, and thanks to an open immigration policy, a comparatively easy one to enter. Add a strong banking system, growing job market, and high standard of living, and it’s no wonder it tops immigrant entrepreneurs’ list.

For many, the government’s Start-Up Visa launched in April is making Canada an even more appealing place.

For business people considering Canada as a destination for immigration, there are three points to consider:

  • The per capita income of new immigrants is well below the Canadian average, with the gap growing since the early 1970s despite the average level of education of recent immigrants increasing in the intervening time. The longer an immigrant is in Canada, the closer their income tends to be to the Canadian average.

  • Immigrants and first-generation Canadians make up a sizeable percentage of Canada’s millionaires, at 48 percent.

  • The average income of immigrants who are admitted into Canada through the business class immigration programs is slightly below that of immigrants admitted through the Federal Skilled Worker Program (FSWP), despite the former group having had to meet stringent capital and business experience requirements.

Taken together, it suggests that:

1) immigrants who arrive through economic class non-business immigration programs, like the FSWP, are likely not at a significant disadvantage compared to their business class counterparts in their chance of creating a successful business, that

2) immigrants are likely more entrepreneurial than the general population, and that

3) many immigrant business people fail for the few that succeed.

Matt Man, a successful immigrant businessman profiled for Riddell’s article, advises immigrants who are starting their business to try to get as much face-time as possible to improve their chance of success:

“Face to face can always make up for some of what I lost due to my accent or the way I’m communicating.”

48% of Canadian Millionaires From Immigrant Families

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A new survey on Canadian millionaires finds that 48 percent are new Canadians and 68 percent are self-made (Government of Canada)

A new survey by BMO Harris Private Banking finds that nearly half of Canadian millionaires are either immigrants or have at least one parents born outside of the country.

The findings suggest a high degree of entrepreneurialism among the Canadian immigrant population, and contrasts with the theme of a recent special contribution to the Vancouver Sun that argues immigrants cost the Canadian $20 billion annually.

The survey further found that 68 percent of immigrant and first-generation millionaires report being self-made – about equal to the 67 percent rate among all Canadian millionaires surveyed.

The province of British Columbia has the highest proportion of millionaires belonging to an immigrant family, at 68 percent, while the rate in every other province is below 50 percent.

The BMO Harris Private Banking survey was conducted online by Pollara between March 28th and April 11th, 2013, using a sample of 305 Canadian adults with a net worth of over 1 million dollars.

B.C. Spends Less On Health, Has Healthiest Population in Canada

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Vancouver General Hospital in British Columbia, Canada. B.C. is ranked as having one of the best health care systems in Canada thanks to high ratings on the health-related lifestyle habits and health outcomes of its residents (Arnold C.)

British Columbia has the healthiest residents among the Canadian provinces according to a new Conference Board of Canada (CBoC) study.

The B.C. provincial government spends less than almost all other Canadian provinces on health care, but still comes out on top in the health care ranking thanks to the healthy lifestyles of B.C. residents, who have the lowest smoking rates in the country.

The CBoC report rates provincial health care system performance according to a total of 90 indicators within four categories: Lifestyle Factors, Health Status, Health Resources, and Health Care System Performance.

Lifestyle Factors measures the behavior of a province’s population that affects health, including the rate of smoking, heavy drinking, obesity, fruit and vegetable consumption and physical activity.

B.C. has the best score in both the Lifestyle Factors and Health Status categories, which was enough to earn it one of only three As granted in the Overall Performance rating.

The other provinces scoring an A in Overall Performance were Alberta and Ontario. Both provinces have more government spending on health care than B.C., and both received a higher score in Health Care System Performance, which measures disease screening, waiting times and accessibility for procedures, effectiveness of treatments and the appropriateness of treatments.

Residents of Alberta and Ontario fell short of British Columbians in their health status however, with lower birth weights, higher infant mortality, and more years of life lost to illness.

Immigration Pushes Canadian Province’s Population Growth to 40 Year High

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Cold winters have historically discouraged Canadian immigrants from settling in Manitoba, but a path to permanent residence through the Manitoba Provincial Nominee Program has increased the number of immigrants arriving in Manitoba and led to its largest population increase in 40 years this year

The population of Manitoba, a province in Canada’s prairie region, increased by 16,227 people over the last 12 months, which is the most in 40 years, according to the Manitoba provincial government.

The arrival of 15,199 immigrants to Manitoba over the last 12 months, the highest number since 1946, was the main reason for this year’s record population increase.

Many of the immigrants arrived through the Manitoba Provincial Nominee Program (MPNP), which allows temporary residents with six months of work experience in Manitoba to qualify for nomination by the provincial government for permanent residence, subject to meeting official language proficiency requirements for semi-skilled workers.

Manitoba has historically drawn a low percentage of total Canadian immigrants due to its frigid winters and lack of any coastal cities, which tend to be favoured over inland cities.

To reverse this trend, the Manitoba government has been requesting that Citizenship and Immigration Canada increase the cap on the number of immigrants the province can nominate through its provincial nominee program from the current 5,000, to 20,000 by 2016.

Provincial Government in Canada Criticizes Remarks About Immigrant Investor Program

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A river walkway in Winnipeg, Manitoba’s largest city

The provincial government of Manitoba on Tuesday shot back at critics who have said the NDP government’s management of the Manitoba Provincial Nominee Program (MPNP) for Business has been a failure.

Among the critics are Manitoba Progressive Conservative immigration critic Bonnie Mitchelson and the former program manager for the MPNP for Business, Randy Boldt, who say that a report showing that only 20 percent of foreign investors nominated for permanent residence by the Manitoba provincial government have made their required investment points to a total program failure.

The government criticized those statistics as misleading and inaccurate, stating that immigration through the MPNP for Business is a two-step process, with the province first nominating individuals, and the federal government then admitting the individual, and that investor applicants only make their investment after the second step is complete.

The government says that the 20 percent figure is for all applicants who have completed the first step and been nominated by the Manitoba government, and includes many who have yet to complete the second step. Figures that only account for those who have completed both steps shows 60 percent of applicants end up making their investment.

The program requires all immigrant investor applicants to provide a $75,000 deposit, which they forfeit if they do not meet the program’s requirements of investing $150,000 into a Manitoba-based business within two years of arriving in Canada.

The Manitoba government says that $200 million has been invested into the provincial economy through the program since it began in 2000.