As per the new study Canada’s startup visa policy attracts US talent to move to Canada. This study supports Canada’s effort to get American holders of H-1B visas to apply there. The program received a resounding response, surpassing its 10,000 application cap in just 48 hours.
Visa impact – Entrepreneurs’ location choice
Researchers Saerom Lee and Britta Glennon of the University of Pennsylvania’s Wharton School are exploring how immigration laws that provide skilled entrepreneurs visas affect where they choose to establish their businesses.
The results show that the 2013 launch of Canada’s Start-up Visa Program greatly increased the likelihood that immigrants from the United States would found startups in Canada, with a noteworthy 69% rise in these kinds of business endeavors.
The research employed a dataset that included 1.2 million US-based individuals who have founded businesses in the US or Canada between 2006 and 2021.
Additionally, the study demonstrated that immigrants to the United States who were born in Asian nations had the greatest inclination to start enterprises in Canada. According to the authors, “Our study also establishes that, in comparison to immigrants from other ethnic backgrounds, Asian immigrants displayed greater receptiveness to the changes in policy.” Furthermore, the findings show that the level of responsiveness differed according to whether Asian immigrants were present in their previous locale. More specifically, there was a negative correlation found between the concentration of Asian immigrant communities in the origin site and the chance of Asian immigrants residing in the United States relocating to Canada to start a business.
The authors conclude by highlighting the complex process by which immigrant entrepreneurs choose where to establish their businesses and stressing the role that immigration laws play in shaping these decisions as well as the significance of elements like social networks and the presence of co-ethnic communities in both the origin and destination locations.
Canada’s startup visa attracts US talent to move to Canada – Understanding its eligibility
This project aims to attract international entrepreneurs in order to promote job creation and drive economic expansion in Canada.
To qualify, Start-Up Visa applicants must fulfill the following criteria:
- Demonstrate proficiency in English or French with a minimum CLB 5 score in all language abilities.
- Possess adequate funds to establish residence in Canada.
- Intend to settle in a province other than Quebec.
- Successfully undergo Canadian security and medical clearance processes.
- Provide evidence of business support from a designated organization.
- Verify that your business meets the stipulated ownership requirements.
IRCC has recognized specific venture capital funds, angel investor groups, and business incubation organizations as participants in the Start-Up Visa program.
Selected applicants need to obtain a minimum funding for their launch. The money must be at least $200,000 if it originates from a recognized Canadian venture capital fund. If obtaining funding from an angel investor organization, the applicant must make a minimum investment of $75,000.
Crucially, candidates do not need to contribute any of their own money. Even if their Canadian start-up is unsuccessful, individuals awarded permanent residence through this program maintain their status as permanent residents.
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