New research shows that immigrant-owned businesses face a productivity gap when compared to firms owned by Canadian-born entrepreneurs. The findings raise important questions about how Canada supports newcomers in building and scaling successful enterprises.
Despite being more likely to start businesses, immigrant entrepreneurs often face barriers to growth that limit profitability and long-term expansion.
What’s Behind the Productivity Gap?
Limited Access to Capital
Many immigrant entrepreneurs struggle to secure loans or attract investors, especially in the early stages. Without sufficient capital, these businesses may hire fewer staff, invest less in technology, and scale more slowly.
Smaller Professional Networks
Building strong local connections takes time. Newcomers may have limited access to mentors, partners, or key industry contacts, which can delay growth or reduce competitiveness.
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Report Calls for Better Support
Experts say the solution isn’t just about offering loans. They recommend policies that improve training, networking opportunities, and targeted support for immigrant-led firms. By closing this gap, Canada could unlock stronger economic growth and innovation.
The report also suggests that immigrant-owned businesses tend to survive at similar rates as non-immigrant firms, proving their resilience even in challenging conditions.
Conclusion: Unlocking Potential Through Better Policy
The fact that immigrant-owned businesses face a productivity gap doesn’t reflect a lack of talent—but a need for more inclusive economic policies. By supporting these business owners with better tools, networks, and capital access, Canada can create a stronger, more diverse economy.
