Forces for Change: Newcomers Shape Their Future Through Entrepreneurship
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Whether they own a café, a multi-location pet store or are a home contractor, what sets entrepreneurs apart is the visionary way they see the world and their ability to create something out of nothing.
Layer on navigating a new country, while establishing and then operating a business, and it’s clear to see the entrepreneurial experience of newcomers is an extraordinary feat.
Square partnered with Leger for a closer look at the hidden experiences of newcomers to Canada, arriving fewer than 10 years ago, who have become entrepreneurs. Square’s Entrepreneurial Spirit of Newcomers Report reveals newcomers choose entrepreneurship to shape their future as they make Canada their home.
Finding fulfillment amid challenges
A staggering two-thirds (65%) of newcomers to Canada faced significant challenges having their valuable skills and work experiences recognized in the Canadian job market. This led them to seek better opportunities and career control through entrepreneurship.
Additionally, when newcomers secured jobs:
- Over one-third (36%) were dissatisfied with their work.
- Over one-quarter (27%) felt they were underemployed, leading them to seek better opportunities.
“While I learned cooking from my mother, there was always unspoken pressure to work towards a serious degree, something that would lead to a ‘safe career,’ but I always wanted to work in food. Eventually, I created my own pop-ups, quit my job, wrote a business plan and found partners to open a restaurant, which is now called Superbaba.”
Taking ownership of their future
Newcomer entrepreneurs view business ownership as a powerful way to improve their lives and control their own destiny. The vast majority (80%) agree business ownership has allowed them to reach their full potential in Canada.
Key ways entrepreneurship positively impacted their lives include:
- 7-in-10 say their financial security improved.
- 8-in-10 say building community connections accelerated their sense of belonging.
- 8-in-10 say they created a more meaningful career.
Newcomers plan to create jobs and grow their businesses
Newcomer entrepreneurs are notably more optimistic about growing their business and creating jobs compared to business owners who’ve lived in Canada for more than 10 years. While only 66% of other Canadian business owners express confidence in the future growth of their business, 78% of newcomer entrepreneurs are positive about their business’ growth potential.
That translates into positive impacts for their communities and the Canadian economy:
- Over 7-in-10 newcomer entrepreneurs plan to increase their workforce in the coming years—nearly double the rate of other Canadian business owners (43%).
- Nearly 7-in-10 newcomer entrepreneurs foresee expanding their growing businesses in Canada, compared to only half of other Canadian business owners.
“Opening my own business was the best decision I ever made. I chose a Spanish name for my business to symbolize to other newcomers that they too can achieve success and realize their dreams. Rituales has provided me the opportunity to create jobs and support others in their growth, which brings me immense fulfillment.”
— Gabriela Rivera Chang, Owner at Rituales Holistic Wellness Clinic
Obstacles of operating a business
When asked what challenges they face as a business owner, newcomers share in these top three challenges:
- More than half (56%) have difficulties accessing funding or capital, a primary challenge for sustaining and growing their business.
- Nearly half (44%) struggle to find affordable commercial or residential space to operate their business.
- Nearly half (41%) experience difficulties navigating Canadian regulations and legal requirements.
Despite facing ongoing challenges, nearly all newcomer entrepreneurs (91%) believe owning a business in Canada was a good decision.
“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.”
— Fabiana Del Bianco, Co-Owner at Padaria Toronto
Final thoughts: Fostering the ambition of newcomer entrepreneurs
The remarkable contributions of these newcomer entrepreneurs as changemakers is not only worth celebrating for their impressive adaptability, initiative and determination but also as a positive force for Canada given their enriching impact on Canadian communities across the country.
Our findings make it clear that while newcomers are uniquely able to create golden opportunities amid obstacles, there are specific barriers hindering newcomers’ ability to build their business. Newcomers require dedicated support in their entrepreneurship journey, especially at critical junctures. This need is all the more pressing given the anticipated increase in immigration and the high rates of business ownership among newcomers relative to non-immigrants.
For additional details on report findings, connect with the Square team at press@squareup.com.
Read our 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.