Financing hurdles and government red tape among top challenges for Canada's newcomer entrepreneurs

TORONTO, Feb. 19, 2025 /CNW/ - 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, finds a new report by the Canadian Federation of Independent Business (CFIB).

The From Challenges to Opportunities: The Newcomer Entrepreneurial Experience in Canada report, sponsored by Scotiabank, shares the experiences of 14 newcomer entrepreneurs across Canada.

"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."

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.

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.

"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.

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.

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.

"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.

CFIB would like to recognize the collaborative efforts of PORCH and the Calgary Catholic Immigration Society (CCIS) in facilitating participant recruitment for this report.

About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada's largest association of small and medium-sized businesses with 100,000 members across every industry and region. CFIB is dedicated to increasing business owners' chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.

SOURCE Canadian Federation of Independent Business

For media enquiries or interviews, please contact: Dariya Baiguzhiyeva, CFIB, 647-464-2814, [email protected]