According to comprehensive reports from Worldway, on June 26, 2023, the Canadian "World Journal" reported that Canada is a country of immigration, but there has been little research on the contributions of new immigrants to Canada. However, a recent study indicates that new immigrants are a significant driving force in promoting the diversification of Canadian exports. The term "new immigrants" refers to those who have been in Canada for less than five years.
The Conference Board of Canada, an economic think tank based in Ottawa, surveyed 15,000 small and medium-sized enterprises to compare the operational status of companies founded by new immigrants who moved to Canada in the last five years with other similar Canadian companies. The researchers found that companies founded by new immigrants often target new markets for exports because they understand the language, customs, and business practices of their home countries.
Canada is committed to exploring new markets beyond the United States, and new immigrants are often seen as a force with the potential to help Canada tap into new markets outside the U.S. However, few people truly understand the export directions of these new immigrant exporters, suggesting that the government should provide them with policy support.
Among the companies founded by new immigrants, 12% export Canadian goods or services to markets outside the United States. Most of these small and medium-sized companies founded by new immigrants are located in Ontario and Quebec. Approximately 19% of new immigrant small and medium-sized companies engage in export activities, while the proportion of other small and medium-sized companies involved in export activities is 14%.
However, the Conference Board's research report also points out that new immigrant small enterprises face higher long-term risks and lower asset returns. Additionally, many of them are concentrated in the wholesale and retail sectors, making them more susceptible to price competition from other markets.
At the same time, new immigrants lack relevant networking relationships in the Canadian business community, which ultimately limits the sustainable growth of their enterprises.
Edited by Worldway
