New research has shown that Start-Up Visa encourages immigrants in the US to move to Canada. This research is in line with the implementation of Canada’s program to entice H-1B visa holders in the US to come to Canada. Well, this has attracted so many applications that it has reached the 10,000 limit in less than 48 hours.
In addition, a new study by Saerom Lee & Britta Glennon from Wharton School at the University of Pennsylvania investigated whether immigration policies influence the founding location choice of immigrant entrepreneurs.
The study found that introducing Canada’s Start-Up Visa program in 2013 increased the likelihood that US-based immigrants have a start-up in Canada by 69%. Moreover, the study used a dataset of around 1.2 million US-based individuals who ‘founded a company either in the US or Canada between 2006 & 2021’.
As the Start-Up Visa encourages immigrants in the US to move to Canada, the research also found that immigrants to the US from Asian nations were most likely to begin a business in Canada. Moreover, the study also found that as compared to immigrants of other ethnic groups, Asian immigrants were more responsive to this policy. In addition, the study’s outcomes suggested that this responsiveness varies by the presence of Asian immigrants in their prior location. This implies that the larger the Asian immigrant enclaves in the origin location, the less chances are that US-based Asian immigrants in this location will move to Canada to begin a business.
The study concluded by discussing how not only does immigration policy impact the founding location decisions of immigrant entrepreneurs but that this decision also involves weighing factors like social ties & the presence of co-ethnic communities in both origin & destination locations.
Who Is Eligible For The Start-Up Visa?
The Start-Up Visa encourages immigrants in the US to move to Canada. Well, this program aims to hire foreign entrepreneurs who will create new jobs & drive economic growth in Canada.
In order to be eligible, applicants must meet the following requirements:
- Meet minimum language requirements in English/ French
- Have enough funds to settle in Canada
- Pass Canadian security & medical clearances
- Plan to settle in a province other than Quebec
- Demonstrate that your business meets ownership requirements
- Prove that your business is supported via a designated organization
IRCC has designated many venture capital funds, business incubator organizations, & angel investors who participate in the program.
Successful candidates need to secure a minimum investment for their start-up. If coming from a designated venture capital fund in Canada, the investment should be at least $200,000. In addition, if coming from an angel investor group, it should be a minimum of $75,000.
Furthermore, candidates aren’t required to invest any of their own money. If their Canadian start-up is unsuccessful, applicants are offered residence through this program to retain their PR status.