If you read only the headlines this fall, you could be forgiven for thinking the newcomer story in Canada is winding down. Fewer people are arriving, population growth has nearly stalled and the mood around starting a business is gloomy. It's a hard season to feel hopeful.
But numbers can hold two truths at once. Fewer people are coming in, and the people who built their lives here are still building businesses at a higher rate than anyone else. Here's what the latest data says, where the real obstacles sit, and what a newcomer founder can control right now.
Key Takeaways
- Canada welcomed 368,224 new immigrants in 2025/26, the first year below 400,000 since 2021/22 (Statistics Canada, September 2026).
- 11.9% of immigrants own a business, vs. 8.4% of Canadian-born people (Business Data Lab, 2025).
- Immigrant-owned incorporated firms nearly doubled from about 247,000 to 474,000 between 2010 and 2020.
- The hurdles are practical: financing, credit history and red tape. Most can be planned for.
How Much Smaller Is Canada's Newcomer Intake in 2026?
Noticeably smaller. Statistics Canada reported that new immigrants fell for the fourth consecutive year to 368,224 in 2025/26, the first time since 2021/22 that the annual number dropped below 400,000 (Statistics Canada, The Daily, September 23, 2026). The agency links the decline to the federal government's lower immigration targets.
Temporary residents are also falling. The number of non-permanent residents dropped by 154,614 in a year to 2,779,774 on July 1, 2026, or 6.7% of the population. That's down from a high of 2,984,285 (7.2%) on October 1, 2024. The result: Canada's population grew just 0.5%, to 41,798,407, the slowest annual growth since 1944/45.
So why write something hopeful? Because a smaller intake doesn't change the people already here. Several hundred thousand business owners, and many more who are planning one, are making decisions this winter. What they need is a clear picture of what's working.
Do Immigrants Really Start Businesses at Higher Rates?
Yes, by a clear margin. The Business Data Lab, a research partner of the Canadian Chamber of Commerce, found that 11.9% of immigrants own a business compared with 8.4% of Canadian-born people (Business Data Lab, From Roots to Routes, October 21, 2025). That's about 42% higher, by our arithmetic from the two published rates.
A caution before anyone takes this as a guarantee. An ownership rate counts who has a business, not who has a profitable one. Some of it reflects necessity: when a job search stalls or credentials aren't recognized, starting something becomes the practical move. That's still an act of resilience, but it isn't the same as an easy road.
How Fast Have Immigrant-Owned Businesses Grown?
Fast. According to the Business Data Lab, the number of immigrant-owned incorporated businesses went from about 247,000 in 2010 to 474,000 in 2020, which is more than half of all net new incorporated businesses formed in that decade. Their direct employment rose from 597,000 to roughly 810,000, and annual revenues from $93 billion to $218 billion (Business Data Lab, 2025).
Notice the gap between the bars. Revenue grew far faster than jobs. That pattern suggests these firms were getting more productive, or moving into higher-value work, rather than just adding headcount. The report doesn't say so directly, so treat it as our reading of the numbers, not a finding. And remember the vintage: this is 2020 data, published in 2025. It describes the decade that built today's base, not what happened during the last two years.
Where Do Immigrant Founders Come From, and Do They Export?
India is the largest single origin. Of roughly 400,000 immigrant-owned businesses that reported revenues, 24% were owned by people from India, the top country or region in the report (Business Data Lab, 2025). For a business community in the Greater Toronto Area, that isn't a surprise. It does show how large the Indian-origin founder base has become.
Exporting is a smaller story, but a growing one. The report says only a small fraction of immigrant-owned firms export, yet the immigrant share of exporters rose from 12% in 2010 to more than 16% in 2020, and 16.4% of active goods exporters were immigrant-owned that year. Founders from Mainland China, India, Iran, Hong Kong and the United Kingdom were among the most export-active. The page doesn't give an India-specific export share, so we won't invent one.
What Still Makes It Hard for Newcomer Founders?
Money and paperwork, mostly. CFIB's 2025 report on newcomer entrepreneurs, defined as people in Canada for less than 10 years, found they own over 7% of enterprises and named securing financing, given limited Canadian credit history, and navigating government regulations as top challenges. Building trust and networks, language and culture, and finding information followed (CFIB, February 19, 2025).
The mood among all small business owners is also low right now. CFIB's recent findings, covered in our look at Canada's small business confidence crisis, showed only 18% of owners would recommend starting a business today. Newcomer founders feel the same squeeze, plus the credit-history gap. Is that discouraging? A bit. But a problem you can name is a problem you can plan for.
In our experience working with newcomer founders across Ontario, the businesses that struggle most rarely fail for lack of effort. They stall because the founder skipped a boring step: no separate business bank account, no plan for the first lender conversation, or a structure chosen in a hurry. Those are fixable, and the next section shows how.
What Can a Newcomer Founder Control Right Now?
More than the headlines suggest. You can't change national intake numbers or the mood of the market, but you can change how prepared you are. Here's a practical sequence for the first stretch, built around the hurdles CFIB named.
Start Building Canadian Credit History Early
Limited credit history is one of the top financing hurdles. Open a business bank account, keep business and personal money separate, and use a Canadian credit product responsibly so a lender has something to look at.
Choose Your Structure Deliberately
Sole proprietorship or corporation changes your liability, taxes and credibility with lenders. Our guide to sole proprietor vs. corporation in Ontario walks through the trade-offs.
Register Properly the First Time
Regulations were a named obstacle. Follow the steps in how to register a business in Ontario so you don't discover a missing licence or account after launch.
Build Your Network on Purpose
Trust and networks were on CFIB's list too. Join a local chamber of commerce or founder group, and ask other owners in your sector who they use for accounting, insurance and legal help.
Keep Business and Immigration Questions Separate
Owning a business doesn't create immigration status. If your permit or residency plans depend on your work, get advice from a licensed immigration professional before you commit money based on a hoped-for outcome.
Already trading and worried about costs? Our post on 2026 tariff relief options for Ontario small businesses covers the programs currently on offer, and you should confirm current terms on the official program pages before you apply.
Frequently Asked Questions: Immigrant Entrepreneurs in Canada
Are immigrants more likely to start businesses in Canada?
Yes. The Business Data Lab's October 2025 report found 11.9% of immigrants own a business, compared with 8.4% of Canadian-born people. The page doesn't date that specific comparison, though the report's other figures describe 2020. Ownership rates say nothing about whether any one business will succeed.
How many new immigrants did Canada welcome in 2025/26?
Statistics Canada reported 368,224 new immigrants in 2025/26, the fourth consecutive annual decrease and the first time since 2021/22 that the number fell below 400,000. Canada's population grew only 0.5% to 41,798,407 on July 1, 2026, the slowest annual growth since 1944/45.
What share of immigrant-owned businesses are owned by people from India?
Among roughly 400,000 immigrant-owned businesses that reported revenues, India was the top country of origin at 24%, according to the Business Data Lab's 2025 report. The figure covers businesses that reported revenue in the report's data, which centres on 2020, not every immigrant-owned business.
What are the biggest hurdles for newcomer entrepreneurs in Canada?
CFIB's 2025 report named securing financing, given limited Canadian credit history, and navigating regulations and compliance as top challenges. It also listed building trust and networks, culture and communication differences, and finding information. The study is qualitative, based on 14 interviews, so it describes experiences rather than rates.
Does starting a business in Canada change my immigration status?
No. Owning or registering a business doesn't by itself give anyone immigration status or a path to permanent residence. Rules depend on your permit and program, and they change. Check your situation with a licensed immigration professional or on IRCC's official pages before you plan around a business.
Canada is welcoming fewer newcomers this year, and that's a real change. It doesn't undo the base that's already here: businesses that nearly doubled in number over a decade, employ roughly 810,000 people and reach into export markets. The obstacles are well known, mostly financing, credit history and paperwork, and they're the kind that preparation shrinks. If you're a newcomer weighing a first business, start with the boring steps and get a second opinion on the structure. That's the part we help Ontario founders with every week.
