For newcomers, business ownership delivers more than financial security

Landmark study by Square reveals the role of entrepreneurship in helping newcomers build meaningful careers and a sense of belonging in Canada

• The majority of newcomer entrepreneurs (65%) experienced difficulties having their skills and experiences recognized in Canada
• 8-in-10 say their business helped them build community connections and belonging
• 8-in-10 believe business ownership helped them create a more meaningful career

A new study released today by technology company Square reveals that for newcomers, owning a business is a self-enabling path to shaping their future as they make Canada their home.

Square’s Entrepreneurial Spirit of Newcomers Report finds the vast majority of newcomer entrepreneurs (81%) believe owning a business helped them positively impact their lives in Canada.

The report highlights business ownership as a catalyst for helping newcomers unlock financial security, achieve more meaningful careers and accelerate their sense of belonging in Canada. More than that, newcomer entrepreneurs enrich communities throughout the country.

From difficulties to self-determination through entrepreneurship

Square’s report found that a staggering two-thirds (65%) of newcomer entrepreneurs faced significant challenges in having their valuable skills and work experience recognized in the Canadian job market before they started their businesses.

More than one-third of newcomer entrepreneurs (36%) experienced work dissatisfaction and one-in-four (27%) felt they were underemployed, leading them to seek better opportunities through business ownership.

According to Square’s new report, the vast majority of newcomer entrepreneurs view business ownership as a powerful way to improve their lives. Over 90% say that becoming a business owner was a good decision and just over 80% share the belief that operating their business has allowed them to reach their full potential in Canada.

Newcomer entrepreneurs are twice as likely to create jobs

Newcomer entrepreneurs are notably more optimistic (78%) about the future growth of their businesses compared to 66% of entrepreneurs nationally. Their confidence extends to hiring plans, as 7-in-10 newcomer entrepreneurs intend to increase their workforce in the coming years – nearly double the rate of other business owners (43%) across the country.

“Rituales provided me the opportunity to create jobs and support others in their growth, which brings me immense fulfillment,” explains Gabriela Rivera Chang, owner at Montreal-based Rituales Holistic Wellness Clinic. “Opening my own business was the best decision I ever made.”

Fostering the ambition of newcomer entrepreneurs

While newcomers are uniquely able to create opportunity amidst obstacles, they face ongoing barriers making it hard to operate and expand their businesses in Canada. More than half (56%) cite difficulties accessing funding or capital, finding affordable commercial or residential space (44%), and navigating Canadian regulations and legal requirements (42%).

“Being from another country is harder. It’s challenging because you need to learn everything from zero. In the beginning, we didn’t know the laws here, all the permits we needed, how the real estate market works. There are so many difficulties we went through,” recalls Fabiana Del Bianco, co-owner of Toronto’s thriving Brazilian bakery, Padaria Toronto.

“Newcomer entrepreneurs tend to think big and display extraordinary determination – their ambition for business growth and job creation should not be diminished,” explains Roshan Jhunja, Head of Business Solutions at Square. “Newcomers must be better supported in their entrepreneurial journey, especially at critical junctures of building their businesses.”

For additional details on Square’s Entrepreneurial Spirit of Newcomers Report, connect with the Square team at press@squareup.com.

Methodology

Square commissioned Leger to conduct an online survey with 215 newcomer entrepreneurs (in Canada for 10 years or less) and 253 general population entrepreneurs (born in Canada – or living in Canada for 11 years+) in June 2024, using Leger’s online panel. For comparison purposes, a probability sample of n=215 yields a margin of error no greater than +/-6.7%, 19 times out of 20 and a probability sample of n=253 yields a margin of error no greater than +/-6.2, 19 times out of 20.