Business

Canada Needs more Business Immigration

Many Canadian business owners and entrepreneurs may not be aware of Citizenship and Immigration Canada's Immigrant Entrepreneur Program. This program facilitates affluent business immigrants coming to Canada who must invest in, purchase or establish a business of their own within two years of landing in Canada as permanent residents. The greatest thing about this program is that the entrepreneur immigrant is flush with cash and has a time limit in which to make the financial commitment so as to lift the terms and conditions on his visa. For the local businessman, the program offers a great potential source of new capital.

The investments made by the immigrant are often in the 100k to 150k range. Many choose the easy way and make a franchise the choice investment. There is no upward limit on the investment. If the immigrant entrepreneur is settling in Ontario then the Rule of Thumb (although not actually stated in the Immigration Act or Regulations) is that his net worth should not be less than approximately CDN$500.000.00. Local business owners would be wise to advertise overseas, in the local ethnic media and on the Internet if they are interested in tapping this source of capital. The strategy is to capture their interest before they arrive in Canada.

It is not easy for these people when they come to Canada. Essentially, prospective immigrants are given two years to get the ball rolling in their own business or invest in someone else's business after they land in Canada. As long as they have a day to day role to play in the management of the company, then the investment is fine-whether it is a grocery store or a computer manufacturer.

Some of these people are very talented people that are needed in Canada. Our country desperately needs more entrepreneurs. Not dreamers. Entrepreneurs. People that have some skin in the game. Business Immigrants can fit this niche.

For example, take someone from Chile who has a net worth of approximately CDN$500,000.00 and was a senior manager of a food company in his home country. He comes to Canada with his family and decides to invest in a restaurant franchise. Typically this guy would hire a Canadian general manager other than his immediate family to run the business while he worked as a co-manager learning the ropes on a day to day basis. Cash would be invested in the business and voila ! - the immigrant has a stake in the business and the vendor has fresh capital. It's a great system and everyone comes out winning!

What kinds of businesses have been popular in the past? Certain franchises and other small businesses have been very big with the business immigrant crowd, but, if they are looking to finance their acquisition then, the banks are a little more scrutinizing of the proposed business. Franchises are a good way for an entrepreneur to buy a job. Most of these people are working well below their capacity. Doing a “start-up” is highly recommended.

Finding a strategic investment in a larger company takes a substantial more amount of sophistication and research.

The Canadian government has scored big with this program. It has provided jobs to thousands of Canadian citizens, an infusion of billions of dollars of new investment capital into the country and at the same time new immigrants with top foreign management expertise are helping to build our nation's economy.

It is not only the jobs they're supplying and the money they are investing in the business. Think of the cars and appliances they are buying and the homes and condominiums that they are moving into. It should be called the melting pot multiplier.

Business immigration, it's good for business and it's good for the nation.