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Understanding the motivations and challenges of immigrant employers
Editorial by Christian Saint Cyr
National Director / Canadian Job Development Network
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One of the great skills job developers can grow is the ability to understand employers, their motivations and their challenges. Through these efforts we can gain credibility, build relationships and speak to those motivations and challenges when marketing clients and students.
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Newcomer entrepreneurs, those who have been in the country for less than 10 years, own over 7% of enterprises in Canada and face unique challenges impacting their entrepreneurial growth and integration in the broader business community, according a new report by the Canadian Federation of Independent Business (CFIB).
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While it's impossible to ascribe common motivations to so many individuals of different genders, education, life experience and cultures from potentially hundreds of countries, the experience of being new to Canada and having left their support network, learned history and possibly their language creates a unique perspective on growing your business in Canada.
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The From Challenges to Opportunities: The Newcomer Entrepreneurial Experience in Canada report, sponsored by Scotiabank, shares the experiences of 14 newcomer entrepreneurs across Canada.
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"It takes a lot of courage and resilience to move to another country and open a business," said Marvin Cruz, CFIB's director of research and report co-author. "Newcomer entrepreneurs play a crucial role in enhancing the Canadian business landscape and economy by bringing in diverse perspectives and skills."
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The top challenges facing newcomer entrepreneurs include securing financing (considering their limited credit history in Canada), navigating government regulations and compliance, building trust and networks, overcoming culture and communication differences, and accessing information and resources.
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Newcomer entrepreneurs choose to start a business in Canada for a wide range of reasons, including their previous entrepreneurial experience in their country of origin, access to market opportunities, the country's strategic location, the pursuit of autonomy and financial success, and the appeal of a high quality of life and safety.
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The following is a list of the top six motivations for newcomer entrepreneurs in Canada
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Professional background and prior experience: Some respondents had previous entrepreneurial experience, bringing with them skills and knowledge. Others, inspired by the resources and opportunities they perceived in the Canadian market, went into business for the first time.
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Timing of business launch: Some respondents launched businesses shortly after arriving in Canada, driven by a clear vision and readiness to contribute to the economy. Others took years to establish themselves, first gaining local experience, building networks, or securing financial stability before venturing into business.
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Strategic location and market access: Proximity to the North American market was a significant driver, as Canada offers convenient access to one of the most dynamic economic regions globally.
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Safety and quality of life for family: For many respondents, Canada’s reputation as a safe, welcoming, and family friendly country was a major motivator. Establishing a business here aligned with their desire to secure a stable and supportive environment for their families.
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Education and knowledge application: Respondents who had studied in Canada were often motivated by a desire to apply the skills and knowledge they had gained during their studies in a real-world context, contributing to their motivation to start a business.
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Positive experiences from previous visits: For some, prior visits to Canada had left a lasting positive impression, which influenced their decision to pursue business opportunities here. Their favourable experiences as visitors provided a strong foundation of confidence in Canada’s market, lifestyle, and business environment.
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"As Canada navigates economic challenges, including Canada-U.S. trade tensions, strengthening entrepreneurship is more important than ever. To enhance Canada's productivity and global competitiveness, it's essential that all entrepreneurs, including newcomers, are set up for success. That's why it's important for policymakers and financial institutions to provide better and ongoing support to Canada's newcomers in their entrepreneurial journeys," said Francesca Basta, CFIB's research analyst and report co-author.
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CFIB recommends that policymakers work to increase awareness of existing government grants and support programs, create an easily accessible and centralized platform to host critical information on tax rules, labour laws, and licensing requirements, and simplify regulatory compliance while enhancing customer service. CFIB also recommends expanding immigration options for foreign entrepreneurs in Canada and to continue to support and promote newcomer organizations and settlement agencies that have proven to be effective.
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Financial institutions can continue to promote mentorship programs and financial literacy resources, remove barriers to improve access to capital for newcomer entrepreneurs, and simplify the banking setup process.
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"There's immense potential to build a stronger foundation for newcomer entrepreneurs, and when that happens, the benefits will ripple down through the entire business ecosystem," said one newcomer entrepreneur in an interview with CFIB.
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And while there are lessons here for policy makers and financial institutions, there are also insights for the career development sector generally and job developers specifically. Newcomer employers who've gone through numerous challenges in the establishment of their business can find empathy with the experiences of job seekers who've overcome challenges of their own.
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Newcomer employers have also been exposed to different ways of regulating industries, occupations and businesses. In many cases this may give them a broader understanding of how work can be done, the contribution of specific employees and ways of undertaking workplace tasks.
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While newcomer employers will be focused on the growth and support of their business, their personal experience may also leave them with a more positive orientation towards diversity in their recruitment practices.
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This is not to say all immigrant employers will have a positive orientation towards hiring immigrants, let alone those with other challenges to employment. These employers could be just as inflexible and resistant to inclusive employment as some of their Canadian-born counterparts. It's only to say that all of us are shaped by our life experience and newcomers in Canada face unique challenges that can encourage a broader view of potential candidates.
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As you are meeting with newcomer employers, be sure to inquire about the six motivations noted above and suggest clients who can assist with those motivations as well as address the challenges they face..
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We’ll be discussing how to better connect with newcomer employers at our #MotivatingMondays meeting of the Canadian Job Development Network, Monday Feb. 24th at 8:30am Pacific; 9:30am Mountain; 10:30am Central; 11:30am Eastern; 12:30pm Atlantic and at 1pm in Newfoundland.
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On the morning of Monday February 24th 'Click this Link' to join the session LIVE.
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