Self-employment
Entrepreneurism attractive to immigrants: RBC reportEnterprising immigrantsWhen Muhammad Awais immigrated to Canada a decade ago, he landed a job with a major computer manufacturer. When he was laid off several years later, he returned to his entrepreneurial roots and established his own business — a path many new immigrants follow. Linda White, Special to QMI Agency |
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When immigrant Muhammad Awais was laid off from work he established Merchants Canada Inc. The Toronto-based company buys lease computers and parts, and sells them at margin.
According to a new RBC economics research report, the number of immigrant-owned businesses nearly doubled from 2004 to 2007. The report also found that new immigrants are becoming entrepreneurs at younger ages than their Canadian-born counterparts and tend to be more focused in key knowledge-based industries.
Awais left behind a career in customs clearance, imports and exports when he left Pakistan. When he was eventually laid off from work here, he sought the advice of an RBC business adviser and established Merchants Canada Inc. The Toronto-based company buys lease computers and parts, and sells them at margin. It also provides environmentally friendly recycling services for obsolete computer equipment.
“Before coming to Canada, I never worked for anyone but myself. People from my region are business minded,” Awais says. “I decided to go into a field I know and my hardware (skills) are strong.” Merchants Canada operates a 20,000-square-foot warehouse and employs four people. Annual sales range from $2 million to $5 million.
Many new immigrants struggle to find gainful employment for any of a number of reasons, such as the time it can take to verify foreign qualifications, reports Camon Mak, RBC’s director of multicultural markets. Establishing their own business is an attractive alternative for many, he says.
Mak encourages immigrants considering business ownership to establish a credit history and research the Canadian business environment. Take advantage of available resources, such as the Canadian Chamber of Commerce and banking institutions. RBC, for example, offers online tips geared to newcomers interested in starting a business. Those tips include becoming familiar with federal and provincial rules and regulations, as well as licensing for certain types of business.
From 2004-2007, the number of enterprises owned by recent immigrants — those who have resided in the country for less than five years — increased by 117%, RBC reports. In 2007, 91% of immigrant-owned enterprises operated in service-based sectors.
The growth of the Canadian labour force, along with the importance of immigration, directly affects economic growth, says the RBC report. Recent immigrants are becoming large players in starting small- to medium-sized business enterprises, which are a source of productivity gain, GDP growth, and personal income and living standards in Canada.
Additionally, the report argued that both the creativity and risk-taking of these entrepreneurs are important sources of industrial enthusiasm that help the Canadian industry keep their competitive advantage in an increasingly global economy.
By the numbers:
Immigration is a driver of population as well as the economy, according to an RBC economics research report. Consider the following statistics:
• Net immigration accounted for an average of 23.7% of annual population growth in the 1980s and 55% in the 1990s. In 2009, this proportion increased to an annual average of 60.5%.
• Small businesses with fewer than 50 employees make up 97.6% of all business establishments in Canada. Add in medium-sized businesses (50 to 499 employees), and small and medium-sized enterprises account for 99.9% of all Canadian businesses.
linda.white@rogers.com
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