Immigrant-owned Businesses Leverage Exports

by Patricia Rimok in Montreal

Immigration Business Network ib2ib applauds the findings of a recent study done by the Conference Board of Canada that clearly shows immigrant entrepreneurs advance Canada’s export agenda outside of the U.S. more than non-immigrant Canadian Small and Medium Enterprises, SME’s. This is very important given the sluggish Canada-U.S. trade since the financial crisis began in 2007 which has pushed many Canadian SME’s to venture elsewhere to export their goods and the government to redouble its efforts to pursue free-trade deals, bilateral tax treaties and foreign investment protection agreements with fast-growing economies.

So why hasn’t Canada been more successful in leveraging its diverse immigration to increase its exports outside of the U.S.?

The main reasons brought forward by the Conference Board study are that immigrant-owned businesses exporting to non-U.S. markets are less operationally efficient, more likely to compete on price than innovation and product novelty, and represent limited long-term export potential especially the ones that are in the wholesale-retail trade sector.

Caution justified

We need, however, to be careful with some of these observations, especially given that the immigrant-owned businesses surveyed were established in Canada for only five years and have yet to be as sufficiently familiar with Canadian legal, fiscal, legislative and financing frameworks or have had the time to develop strong local business networks that they can leverage as non-immigrant based Canadian SME’s can. In fact, these same limitations have also been the primary reasons why more than half of the immigrant entrepreneurs and investors that came through the defunct immigrant entrepreneur and investor programs have left the country after five years with their capital.

[T]hese same limitations have also been the primary reasons why more than half of the immigrant entrepreneurs and investors that came through the defunct immigrant entrepreneur and investor programs have left the country after five years with their capital.

Had we also included immigrant-owned businesses established for over 10 years in the Conference Board survey as a control group to measure and compare long-term impacts in the various business sectors studied, we may not have arrived at the same observations and conclusions. For example, wholesale and retail chains like Aldo, Point Zero, Peerless, Mep and countless others are immigrant-owned success stories that exist today which started in similar conditions, and yet, have been able to grow, export, diversify, innovate and employ thousands of people.

Other examples

In New Brunswick, for instance, the retail and wholesale trade sector is very important and experienced significant growth despite the fact that it is not associated to a high-growth or innovative sector. GDP associated to that sector was $2.6 Billion in 2010, up from $1.9 Billion in 2000 and projected to increase to $3.7 Billion in 2020. In 2011, out of 57,400 people associated to that sector, 53 800 were employed.

A longitudinal case study in 2009 in Spain (Peri and Requena), which measured the export-creating effects of immigrants from 1998 to 2008, was able to conclude that a rise in immigration to Spain from 1% to 10% in that period increased trade from 35% to 44% of Spanish GDP and the number of exporting firms grew from 58,000 to 100,000 over the same period. Both research economists also found that doubling the number of immigrants from a certain country in a Province led to an increase of the export values from the destination province to the country of the immigrant’s origin by around 10% thanks to their differentiated culture and goods, diaspora business and social connections which increase the diffusion of information and reduce the costs of doing business with their country of origin.

Both research economists also found that doubling the number of immigrants from a certain country in a Province led to an increase of the export values from the destination province to the country of the immigrant’s origin by around 10% thanks to their differentiated culture and goods, diaspora business and social connections which increase the diffusion of information and reduce the costs of doing business with their country of origin.

Closer home

Using similar principles and closer to home, thanks to the contacts in China of a Chinese-Canadian immigrant entrepreneur and member of our network, Immigration Business Network ib2ib was able to secure for a Quebec-based clean-tech waste management company over $3 billion of financing to build 23 plants across Canada and create 1,500 permanent jobs. Wait, there is more! Now China wants the same plants built in their country and Brazil, United Arab Emirates (U.A.E.) and others have expressed an interest to do the same. How is that for leveraging both Canadian imports and exports thanks to our immigration!

We need to continue this conversation with more Canadian immigrant-owned businesses that export as well as increase the connectivity and engagement of local Canadian SME’s with business immigrant and diaspora networks which bring foreign direct investment to Canada. The federal government has a great opportunity to continue improving on its more recent trade policies by incorporating them to their soon-to-be-released new immigrant entrepreneur and investor programs.

Patricia Rimok is President of the Montreal-based Immigration Business Network ib2ib Inc.

This content was developed exclusively for New Canadian Media and can be freely re-published, with appropriate attribution, please.

Applications we will accept – Federal skilled workers

As of May 1, 2014, Citizenship and Immigration Canada will only consider federal skilled worker (FSW) applications from people who have:

• at least one year of continuous and paid (full-time or an equal amount in part-time) work experience in a single occupation,
• within the last 10 years,
• at skill type 0, or skill levels A or B of the 2011 edition of the Canadian National Occupational Classification (NOC), and who are:
  1. in one of the 50 eligible occupations, and whose application is received under the occupation’s sub-cap and overall FSW cap, or
  2. with a valid offer of arranged employment, or
  3. who are applying under the PhD stream (see below) until the PhD cap of 500 applications is reached.

All applicants must also:

• meet the minimum language threshold (and submit approved language test results), and
• submit a Canadian educational credential or foreign credential and an assessment of their foreign education from an approved agency, and
• meet all requirements of the FSW Program.

Applications per eligible occupation:

As of May 1, 2014, there is an overall cap of 25,500 for new federal skilled worker applications. This includes a cap of 500 applications from PhD students. There are also sub-caps of 1,000 for each of the 50 eligible occupations. The caps do not affect people with a valid job offer. These are the last applications we will accept under the current system before Express Entry launches in January 2015.

Note: Due to the large number of applications we get, we cannot check that each one is complete on the same day it gets to the office. The numbers on this page are updated at least once a week, but are only a guide. There is no guarantee that an application sent in now will fall within the cap by the time it gets to the Centralized Intake Office.

Total received toward the overall cap: 516 of 25,000

Eligible occupation (by National Occupational Classification [NOC] code)	Number of complete applications counted towards the 1,000 sub-cap Footnote1
0013  Senior managers – financial, communications and other business services	3
0015  Senior managers – trade, broadcasting and other services, n.e.c.	–
0111  Financial managers	19
0112  Human resources managers	3
0113  Purchasing managers	3
0121  Insurance, real estate and financial brokerage managers	1
0311  Managers in health care	1
0711  Construction managers	2
0712  Home building and renovation managers	–
0811  Managers in natural resources production and fishing	–
0911  Manufacturing managers	1
1111  Financial auditors and accountants	17
1112  Financial and investment analysts	120
1113  Securities agents, investment dealers and brokers	–
1114  Other financial officers	3
1123  Professional occupations in advertising, marketing and public relations	4
1212  Supervisors, finance and insurance office workers	1
1224  Property administrators	–
2113  Geoscientists and oceanographers	2
2131  Civil engineers	20
2132  Mechanical engineers	34
2133  Electrical and electronics engineers	11
2145  Petroleum engineers	–
2171  Information systems analysts and consultants	28
2172  Database analysts and data administrators	4
2173  Software engineers and designers	54
2174  Computer programmers and interactive media developers	130
2232  Mechanical engineering technologists and technicians	–
2234  Construction estimators	1
2241  Electrical and electronics engineering technologists and technicians	2
2243  Industrial instrument technicians and mechanics	2
2263  Inspectors in public and environmental health and occupational health and safety	2
2281  Computer network technicians	23
3011  Nursing co-ordinators and supervisors	–
3012  Registered nurses and registered psychiatric nurses	7
3111  Specialist physicians	–
3112  General practitioners and family physicians	–
3132  Dietitians and nutritionists	–
3141  Audiologists and speech-language pathologists	1
3142  Physiotherapists	11
3143  Occupational Therapists	1
3214  Respiratory therapists, clinical perfusionists and cardiopulmonary technologists	–
3215  Medical Radiation Technologists	–
3216  Medical Sonographers	–
3233  Licensed practical nurses	–
3234  Paramedical occupations	–
4011  University professors and lecturers	4
4151  Psychologists	1
4214  Early childhood educators and assistants	–
5125  Translators, terminologists and interpreters	–

Applications in the PhD stream:

CIC will accept 500 applications for processing per year under the PhD stream. To apply under this stream, you must have either

• finished at least two years of study in Canada towards a PhD, or
• graduated from a Canadian PhD program in the 12 months before we get your application.

Find out more about eligibility for this category.

The new PhD cap year began on May 1, 2014. These are the last applications we will accept under the current system before Express Entry launches in January 2015.

Applications received toward the overall cap: 19 of 500 (as of July 14, 2014).

A Summary of Quebec Immigration Today

JULY, 2014

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Quebec immigration remains open to a wide range of applicants. In fact, immigrating to Quebec is a popular route to achieve Canadian Permanent Residency. With the goal of reducing processing times for applications, the Government of Quebec has introduced a number of changes to Quebec immigration programs in recent months. Permanent workers, investors, entrepreneurs and self-employed workers looking to apply for a Quebec Selection Certificate should take note; spots are filling up quickly. Here is an overview of where these various programs stand today:

Quebec Skilled Worker Program

As of July 4^th, the Quebec Skilled Worker (QSW) program has received over 4,400 applications out of a maximum intake cap of 6,500. This means that the program’s application cap, which was put in place on April 1, 2014, is now approximately two-thirds full.

Prospective immigrants applying to the QSW program must intend to live and work in Quebec. Applicants must, at a minimum, possess a diploma that corresponds to a Secondary School Diploma or a Diploma of Vocational Studies in the Québec education system.

Points are also awarded to applicants for a number of factors, including:

• Level of education;
• Area of training;
• Age;
• French and/or English language skills;
• Work experience;
• Relationships to Quebec residents;
• Ability to be financially self-sufficient; and
• An offer of employment, if applicable.

Moving Forward: Expression of Interest system

The Government of Quebec has hinted that, in 2015, it will follow the lead of the Federal Government in transitioning to an ‘Expression of Interest’ immigration system.

The Expression of Interest model is designed to better target skilled immigrants and fill identifiable gaps in the labour market. It screens applicants based on aspects such as work experience, education, and language ability. The government then invites the best-suited applicants to apply for immigration through one of its programs.

If the Government of Quebec transitions to this system next year, it will signal the end of the current QSW selection system. This means that this is the last chance for applicants to apply directly to the QSW program.

“As the program stands today, applicants have until March 31^st 2015 to apply, or until the cap is filled,” said Attorney David Cohen. “It is looking more and more likely that the cap will fill well before March. This means that, for many individuals interested in immigrating through this popular program, time is absolutely of the essence.”

Quebec Investor Program

 The Quebec Investor Program also has a cap, which is the same as last year. No more than 1,750 applications will be accepted for review under this program. Moreover, no more than 1,200 applicants will be accepted from any one country.

Applications to this program will only be received during a short window of time, which has yet to be determined. While the official government website maintains that the program will be accepting applications between September 8^th and 19^th, the Quebec 2014 budget, which was adopted in June, indicated that these dates are likely to be changed. In any case, now is the time for applicants to begin putting his or her files together.

It is important to note that there is no cap for investors who are able to communicate in French at a high-intermediate level or higher. This means they can apply between now and March 31^st 2015 regardless of how many other applications are received.

To qualify for the Quebec Investor category, investors must intend to reside in Quebec. They must also have a net worth of at least C$1.6 million and have a minimum of two years experience in management during the last five years. Lastly, investors have to agree to invest at least C$800,000 through a government approved financial intermediary.

Entrepreneurs and Self-Employed Workers

Like the QSW program, the Entrepreneur and Self-Employed Worker programs are quickly filling up. Over 300 applications have been accepted for review out of a maximum of 500 for the two programs combined.

To be eligible for the Entrepreneur program, among other things, an applicant must have net assets of at least C$300,000, and have a minimum of two years’ experience in the last five years running a lawful, profitable, business.

The eligibility requirements for the Self-Employed Worker program include having a net worth of C$100,000, and having at least two years of experience as a self-employed worker in the field the individual plans to practice in Québec.

Quebec Experience Class

Another option for immigration to Quebec is the Quebec Experience Class, which has no cap. This program is open to temporary workers who have held a skilled job in Quebec for 12 out of the last 24 months as well as graduates of Quebec universities or those nearing graduation. This program also requires knowledge of French.

Source: http://www.cicnews.com/2014/07/summary-quebec-immigration-today-073616.html